The Directorate General of Foreign Trade (DGFT) has issued Notification No. 25/2025-26 dated August 19, 2025, amending Para 4.61 and Para 4.63 of the Foreign Trade Policy (FTP) 2023, introducing key changes related to imports under the Diamond Imprest Authorisation (DIA) scheme.
Key Amendments:
- Duty Exemptions: Imports under DIA will continue to enjoy exemption from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty wherever applicable.
However, exemption from Integrated Tax (IGST) and Compensation Cess will not be available. - Flexibility in Documentation: Exporters eligible for DIA (Two Star Export House status or above with annual exports of US$ 15 million in Cut & Polished Diamonds over the past three years) can now submit a Chartered Accountant (CA) certificate in place of the latest Income Tax Return (ITR) if it is not yet filed.
- The ITR must, however, be submitted by 31st December of the application year.
The amendment provides exporters with greater procedural flexibility while maintaining strict timelines for compliance. This move is expected to facilitate smoother imports of Natural Cut & Polished Diamonds while ensuring timely tax compliance.
In exercise of powers conferred by Section 3 and Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 1.02 of the Foreign Trade Policy, 2023 (as amended from time to time), the Central Government hereby amends Para 4.61 and Para 4.63 of FTP- 2023, with immediate effect, as under:
| Para No. | Exiting Para | Revised Para |
| 4.61 |
An exporter with a Two Star Export House status or above, and having achieved a minimum export performance of US$ 15 million in Cut & Polished Diamonds each year for the past three financial years and having filed all GST and Income Tax returns for those years, may be granted a Diamond Imprest Authorization. This authorization allows the import of Natural Cut & Polished Diamonds up to 5% of the average annual export performance of Cut & Polished Diamonds over the previous three financial years subject to a maximum value of US$ 15 million. |
An exporter with a Two Star Export House status or above, and having achieved a minimum export performance of US$ 15 million in Cut & Polished Diamonds each year for the past three financial years and having filed all GST and Income Tax returns for those years, may be granted a Diamond Imprest Authorization. Chartered accountant certificate may be submitted in case ITR of the preceding year is not finalized. However, the same shall be submitted by 31st December of the application year. This authorization allows the import of Natural Cut & Polished Diamonds up to 5% of the average annual export performance of Cut & Polished Diamonds over the previous three financial years subject to a maximum value of US$ 15 million. |
| 4.63 | Imports under Diamond Imprest Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Such, imports are also exempt from whole of the Integrated Tax and Compensation Cess leviable under sub-section (7) and sub- section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975). |
Imports under Diamond Imprest Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. |
Effect of the Notification:Â The import under DIA shall be exempted from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Exemption from whole of the Integrated Tax and Compensation Cess is not provided. Flexibility has been introduced by permitting submission of a Chartered Accountant certificate in place of the latest Income Tax Return, if it is not yet filed, with the condition that the proof of submission of said ITR must be submitted by 31st December of the application year.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/08/Adobe-Scan-19-Aug-2025-3.pdf
