DGFT announces Key Amendments to Diamond Imprest Authorisation Policy

The DGFT has issued Public Notice No. 26/2025-2026 dated October 15, 2025, bringing significant amendments to Public Notice No. 42/2024-25, dated January 21, 2025. These changes, effective immediately, impact the Foreign Trade Policy 2023 and the Handbook of Procedures (HBP) 2023, particularly concerning the Diamond Imprest Authorisation (DIA) scheme.

Key Amendments to Diamond Imprest Authorisation (DIA):

1. Policy on DIA: The DIA policy now stipulates that Diamond Imprest Authorisation, outlined in the FTP 2023, requires applicants to submit their online application using ANF 4J to the concerned Regional Authority. The policy applies to all schemes where a license is issued.
2. Conditions of Imports & Exports:

• • Imports: Imports and exports are permitted only through Mumbai Airport.
  • Pre-import Condition: The import items are subject to a pre-import condition.
  • Export Obligation: DIA holders must achieve a minimum of 10% value addition (25 Carats) on the imported goods. This obligation is calculated exclusively through the physical export of Natural Cut and Polished Diamonds.
  • Reduced Value Addition: DIA holders may now fulfill their export obligation by achieving a freely Convertible Currency Provision of Pare 2.52 (d) of FTP 2023, though this option is not applicable to all schemes.
  • Deemed Exports: Deemed exports are no longer allowed under this scheme.

3. Before Clearance of Goods: Before clearing goods through Customs, DIA holders must execute an equivalent bond to the export obligation with a Performance Bank Guarantee (PBG) or a bank undertaking, ensuring the duty amount is covered. This process requires endorsement by the concerned Customs Authority.
4. Duty-Free Exports: Only those exports eligible for duty-free status under the DIA scheme may be accepted towards discharge of export obligation. Shipping Bills with relevant Scheme Code as per Customs Notification need to be mentioned clearly as “Diamond Imprest Authorisation.” Numbers for each correlation of exports with the DIA must also be noted.
5. General Provision: For the purpose of import, the validity of DIA is 12 months from the date of issuance of Authorisation.
6. Period of Fulfillment of Export Obligation: The export obligation must be fulfilled within 18 months from the date of issuance of Authorisation.
7. IEC for Financial Year: Only one authorisation is allowed for one Import-Export Code (IEC) for a particular financial year.
8. ARO/Invalidation Letter/Certificate of Supply (CoS): No ARO/Invalidation Letter/Certificate of Supply (CoS) is allowed against DIA.
9. Export of Precious Metals: Exported precious metal jewelry (other than rough diamonds, precious metal jewelry studded with diamonds) is subject to the condition of paragraph 4.10 of this Handbook or by a jobber/supporting manufacturer, provided samples are taken on authorisation by the Regional Authority. The facility of Co-licensee is not available for the DIA.
10. Goods Exported under DIA: Goods exported under Diamond Imprest Authorisation may be re-imported in the same or substantially the same form, subject to such re-importation being within the original export obligation period. The Authorisation holder must inform the Regional Authority about the re-importation, along with the export obligation extension of one month from the date of re-import.
11. Exemption from Export Obligation Period: No exemption from the export obligation period will be allowed against DIA.
12. Revalidation: No revalidation will be allowed against DIA.
13. Fulfillment of Export Obligation: Diamond Imprest Authorisation holders must file online applications in ANF 4K to the Regional Authority concerned, as detailed in Appendix 4A, and upload the prescribed documents to support fulfillment of export obligation.
14. Regularisation of Bonafide Default in Fulfillment of Export Obligation: Good bonafide default in fulfillment of Export Obligation may be regularised by the Regional Authority, as under:

• Customs Duty on Unutilized Material: DIA holders must pay Customs Duty along with applicable interest online through the ICEGATE Payment Gateway for regularization. This applies to cases where unutilized imported material is cleared by Customs.
• Authorisation Holder Liability: Authorisation holders are also required to pay an amount equivalent to 1% of the shortfall in Free On Board (FOB) value of export obligation, deposited into the minor “Head of Account: 1453, Foreign Trade and Export Promotion and Minor Head 162.”

The provisions relating to Diamond Imprest Authorisation (DIA) notified vide Public Notice No. 42/2024-25 dated 21.01.2025 have been fully renumbered.

The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/10/Public-Notice-No.26-English.pdf