In a significant move aimed at strengthening India’s position in the global diamond trade and further developing Surat as an international diamond trading hub, the Central Board of Indirect Taxes & Customs (CBIC), Ministry of Finance, has approved establishment of a Special Notified Zone (SNZ) at M/s Surat International Diatrade Centre (SIDC), 2nd Floor, Tower-B, Surat Diamond Bourse, Dream City, Village Khajod, Taluka Majura, District Surat.
The decision has been communicated through Circular No. 44/2026-Customs dated September 28, 2026. The SNZ is being shifted from the existing facility operated by SIDC at Gujarat Hira Bourse (GHB), Ichhapore, Surat, to the Surat Diamond Bourse premises. The proposal was recommended by the Chief Commissioner of Customs, Gujarat Zone, Ahmedabad after examination by the jurisdictional Customs authorities.
The existing SNZ is operated by the Gems & Jewellery Export Promotion Council (GJEPC) through its wholly owned subsidiary Surat International Diatrade Centre (SIDC), a Section 8 company. The facility enables eligible foreign diamond mining companies to import rough diamonds into India for viewing, tendering, auction and sale to Indian diamond manufacturers and traders, while permitting re-export of the unsold lots.
The location at Village Khajod, Surat is already notified for unloading of imported goods and loading of export goods under Section 7 of the Customs Act, 1962, vide Notification No. 74/2023-Customs (N.T.) dated October 6, 2023, as amended. The notified goods include diamonds, precious and semi-precious stones, pearls, jewellery of precious metals, industrial diamonds and synthetic stones.
CBIC has stated that the premises proposed for the new SNZ have been physically inspected and verified by jurisdictional Customs officers. The layout plan has also been certified by a registered architect of the Surat Municipal Corporation and duly endorsed by Customs authorities. The SNZ will, however, commence operations only after written authorisation from the Principal Commissioner or Commissioner of Customs, Ahmedabad.
SIDC will be required to submit the floor plan and details of the proposed facilities, including security arrangements, for approval under Section 8 of the Customs Act, 1962. The Commissionerate may thereafter issue the necessary notification approving the proper place for unloading and loading of goods and specifying the limits of the Customs area. SDB Diamond Bourse may also be appointed as the Custodian/Customs Cargo Service Provider, subject to compliance with Sections 45 and 141(2) of the Customs Act and the Handling of Cargo in Customs Areas Regulations, 2009.
Import of Rough Diamonds Only Through Air Cargo
Under the prescribed procedure, import of rough diamonds into the SNZ will be permitted only through air cargo mode. Import through hand carriage or express courier mode will not be allowed. The consignments must be accompanied by relevant documentation including an invoice, packing list, insurance documents and a Kimberley Process Certificate.
The imported parcels will initially be transhipped from the Air Cargo Complex, Sahar, Mumbai to Surat Diamond Bourse, Khajod, under the prescribed Customs safeguards. On arrival, Customs will examine the parcels in the presence of representatives of the mining company, SIDC and the custodian for verification of carat weight against the import documents and Kimberley Certificate. The parcels will thereafter be sealed and transferred to the strong room of the SNZ.
Viewing, Auction and Negotiated Sale Permitted
Eligible traders will be allowed access to the SNZ for viewing rough diamonds and participating in auctions, bidding or negotiated sales. GJEPC/SDB will prescribe eligibility conditions for visitors under intimation to Customs, while authorised persons will be issued photo identity cards. SIDC and the custodian will be responsible for adequate security and prevention of pilferage, damage or unauthorised removal of goods from the Customs area.
The Circular further provides that the imported diamonds may be sold either as single or multiple lots; however, sale of a sub-lot and mixing of different lots will not be permitted. After completion of the viewing or sale process, the rough diamonds must be repacked lot-wise in the manner in which they were received, not later than 60 days from the date of import.
Sale Invoice to Determine Customs Value
Where a lot is successfully sold through auction, bidding or negotiation, the foreign diamond mining company will issue a sale invoice, which will form the relevant document for declaration of value under Section 14 of the Customs Act, 1962. The Indian buyer will be required to file a Bill of Entry at Surat Diamond Bourse, Khajod, and the goods can be removed only after Customs assessment, payment of applicable duty and grant of Out-of-Charge.
Unsold Diamonds to be Re-exported Within Prescribed Timeline
Diamonds which remain unsold will have to be exported under a Shipping Bill filed not later than 75 days from the date of import. The unsold diamonds may be exported to any destination outside India after being transhipped from Surat Diamond Bourse to the Air Cargo Complex, Sahar, Mumbai, in accordance with the prescribed procedure.
SIDC and SDB Diamond Bourse, as custodian, will be responsible for the receipt, custody, sale, delivery, re-export and accounting of rough diamonds brought into the SNZ. The Commissioner of Customs, Ahmedabad has also been directed to issue consequential trade notices and standing orders.
Existing SNZ at Gujarat Hira Bourse to be De-notified
Importantly, CBIC has provided for a smooth transition from the existing SNZ at Gujarat Hira Bourse, Ichhapore. Within 10 days of operationalisation of the new SNZ at Surat Diamond Bourse, the jurisdictional Commissioner will initiate the process for de-notification and closure of the old SNZ, which had earlier been established vide Circular No. 36/2019-Customs, while ensuring uninterrupted functioning of the facility during the transition.
The Circular can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1003346/ENG/Circulars
