The Ministry of Finance’s Department of Revenue has issued a notification waiving customs duties on “Simply Sawn Diamonds” imported between 1 July 2017 and 1 February 2022.
This announcement provides clarification on the status of these diamonds, which are cut but not polished, for duty-free importation during this period. This directive, following ongoing efforts from the Gem and Jewellery Export Promotion Council (GJEPC), represents an important update for stakeholders in India’s diamond industry.
Clarifying “Simply Sawn” Status
While prior notifications granted duty-free status to rough diamond imports, the customs treatment of “Simply Sawn Diamonds” had remained unclear. The new directive specifies that these diamonds—whether industrial or non-industrial—are included in the duty-free category, provided they have a Kimberley Process Certification Scheme (KPCS) certificate verifying origin. This clarification directly addresses compliance issues faced by importers and reduces potential financial or legal uncertainties regarding past transactions.
Government Recognises Established Exemption Practice
The notification also acknowledges an established practice of exempting “Simply Sawn Diamonds” from customs duties. This confirmation means that authorities will not pursue retroactive duties on these diamonds imported during the specified period, offering assurance to importers who had received Show Cause Notices from Customs regarding these transactions. The clarification effectively exempts these imports from further duty claims, providing important guidance for businesses involved in diamond trade.
Industry Implications
This clarification offers much-needed resolution to diamond importers, particularly those who encountered compliance challenges due to previous ambiguities in regulations. For the wider jewellery industry, the policy resolution indicates the Indian government’s responsiveness to sector-specific concerns, facilitating a more predictable import process. By formalising these standards, this decision allows jewellers and industry professionals to proceed with a clearer understanding of regulatory expectations when sourcing raw diamond materials, which could help stabilise trade operations and improve cost predictability.
