In a recent announcement, the Indian Ministry of Finance’s Department of Revenue confirmed a customs duty waiver on “Simply Sawn Diamonds” imported between July 1, 2017, and February 1, 2022. This clarification, issued through a formal notification, aims to resolve longstanding uncertainties faced by importers and address the lobbying efforts of the Gem and Jewellery Export Promotion Council (GJEPC).
While earlier notifications allowed duty-free imports of rough diamonds during the stated period, the status of “Simply Sawn Diamonds” remained ambiguous. This new directive specifies that “Simply Sawn Diamonds,” whether industrial or non-industrial, were indeed eligible for customs exemption, provided they were accompanied by a Kimberly Process Certification Scheme (KPCS) certificate verifying origin.
The government’s acknowledgment of an established “practice” of exempting these diamonds from customs duty further reinforces that no additional dues will be sought for imports within this period. For diamond importers, especially those facing Show Cause Notices from Customs, this clarification brings much-needed relief, affirming that no retroactive duties will be levied on their imports between 2017 and 2022.
