Government issues clarification on duty exemption for rough and Simply Sawn diamonds imported from 2017 to 2022

The Government of India’s Department of Revenue at the Ministry of Finance has issued a clarification on its duty exemption for rough diamonds and ‘Simply Sawn Diamonds’ imported from 2017 to 2022, giving relief to diamond importers, some of which had faced Show Cause Notices. The Gem and Jewellery Export Promotion Council noted industry confusion over the exemption of ‘Simply Sawn Diamonds’ during the period.

The GJEPC had petitioned the government to clarify the parameters of its duty exemption for ‘rough diamonds (industrial or non-industrial)’ which were imported during the period July 1 2017 to February 1 2022, the traders body reported on its website. The government has now clarified that ‘Simply Sawn Diamonds’ were intended to be duty exempt during the 2017 to 2022 period, along with rough diamonds.
 
The clarification also noted that the duty exemption was granted provided the importing business obtained a Kimberly Process Certification Scheme certificate to verify the origin of the diamonds. The government acknowledged the duty exemption practice and businesses which availed it will no longer face potential future claims for unpaid customs duties.
 
The GJEPC also recently took part in an industry event to discuss challenges faced by the Indian jewellery industry, the GJEPC announced on Facebook. With participation from executives at Almus Risk Consulting, Rosy Blue India Private Limited, and State Bank of India, the discussion shared an optimistic outlook for improvement in the coming one to two years and cautious optimism concerning exports to the US and the growing Indian middle class.