CBIC Allows Duty-Free Import of ‘Rough Diamonds’ and ‘Simply Sawn Diamonds’

The Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 70/2024-Customs on October 23, 2024, amending the customs duty provisions on Simply Sawn Diamonds. This follows the initial Notification No. 50/2017-Customs that permitted duty-free imports of rough diamonds under Chapter 71, further amended in February 2022 to include Simply Sawn Diamonds, subject to certain conditions.

Key Highlights:

1. Duty-Free Import of Diamonds:
   The duty-free import of Rough Diamonds (industrial or non-industrial) remains allowed, while Simply Sawn Diamonds were also included under the duty-free category, effective from February 1, 2022. The inclusion is subject to the importer presenting a Kimberly Process Certification Scheme (KPCS) certificate, proving that the diamonds are “not further worked than simply sawn.”
2. Exemption from Past Duties:
   The government has waived any customs duties that would have been payable on these goods during the period from July 1, 2017, to February 1, 2022, in recognition of the prevalent practice of non-levy of customs duty on these imports. This exemption is exercised under section 28A of the Customs Act, 1962.
3. KPCS Requirement:
   To avail of the duty-free benefit on Simply Sawn Diamonds, importers must provide the required KPCS certificate to the Deputy Commissioner or Assistant Commissioner of Customs.

Impact:

This notification ensures continued duty-free import of both rough and simply sawn diamonds, further supporting India’s diamond industry. Additionally, importers are relieved from any potential past liabilities for customs duties during the specified peri

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