The Surat Diamond Bourse (SDB) has received approval for a customs house from the Central Board of Indirect Taxes & Customs (CBIC). This development aims to streamline diamond trade operations within the region, enhancing Surat’s role in the global diamond industry.
Customs House Implementation
The newly approved customs house, spanning 40,000 square feet, has been integrated into the Indian Customs EDI System (ICES) platform, with SDB designated as the custodian under the Customs Act. This aims to expedite import and export processes for diamond traders, reducing logistical burdens.
Lalji Patel, vice-president of the SDB committee, stated: “The customs house approval will make it easier for the diamond traders to import and export from SDB. This will give a major boost to the diamond business of the city. It used to take a couple of days to process via Mumbai.”
Addressing Cargo Challenges
Due to Surat International Airport’s lack of authorisation for international cargo, SDB has secured space allocation for a strongroom at Mumbai International Airport Ltd and obtained transhipment approval from Mumbai Customs. This arrangement ensures that once customs clearance is granted at SDB, gem and jewellery consignments can be transported directly to Mumbai airport for international dispatch.
Special Notified Zone
The Gem and Jewellery Export Promotion Council (GJEPC) has established a Special Notified Zone (SNZ) within SDB. This allows mining companies to bring rough diamonds into the SNZ for direct viewing and procurement by traders. Recent budget announcements support this through the Safe Harbour Rule, enabling foreign companies to sell rough diamonds at competitive prices within the SNZ.
Industry Implications
The establishment of the customs house and the SNZ at SDB is a significant advancement for the Indian diamond industry. By facilitating smoother import and export processes and providing competitive pricing avenues, these developments are set to attract increased international business. For jewellers, this translates to improved access to raw materials and potentially lower costs, enhancing their ability to meet market demands.
