Indian government extends period for duty-free import of diamonds

The Indian government allows the duty-free re-importation of cut diamonds, which are currently abroad for valuation and evaluation, for another three months. The measure is intended to help the gold and jewelry industry in view of the difficult economic situation due to the coronavirus pandemic. The relevant authority, the Central Board of Indirect Taxes and Customs, said importers can import cut diamonds from foreign laboratories with confirmation of their value and quality.

The scheme will make it easier for traders whose diamonds are stuck abroad during the coronavirus pandemic and the usual period for import has expired. Many shipments are also stuck at customs both in India and abroad. In detail, the new scheme allows the re-importation of cut diamonds duty-free for a further three months, which were normally supposed to return to India between February 1 and July 31, 2020, but there were interruptions due to the coronavirus situation. For the re-importation, traders are exempt from Basic Customs Duty and Integrated Goods and Service Tax under certain conditions. In addition to observing the deadline, dealers must provide proof of average annual export sales of the equivalent of USD 680,000 in the past three years.
India is one of the largest centers for the cutting of diamonds and precious stones and the manufacture of all kinds of jewelry. Statistically, 11 out of 12 diamonds that are later set in a piece of jewelry worldwide are cut and polished in India. India is also an important trading center for jewelry made of gold and other precious metals. The industry contributes about 7% of India’s GDP, employs millions of people and is an important source of foreign exchange earnings. The gemstone and jewelry industry generated an economic output of $60 billion in 2017 and is expected to grow to $110 billion by 2022.
The Indian certification landscape is very difficult to understand with its different authorities and processes. Indian certifications such as AIS (ARAI), BIS, WPC, TEC or PESO are part of the portfolio of MPR International – India Certification. We also offer a customs service for India, because sometimes a company has to import a newly developed product for research or a machine for testing or other purposes to India. Should your product actually require a specific certification for import, you can still, under certain circumstances, import your product into India. We will be happy to assist you in verifying that your products require certification in India.
Here you can find more information about the AIS certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.