Diamond Imprest DGFT Authorization

Name: metacorp
Address: H-23, H Block, Sector 63, Noida, 201310, IN
Telephone: +91-9310710156

Under this scheme, eligible exporters are allowed to import rough or cut & polished diamonds without payment of customs duty

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Overview
Benefits
Process
Documents
Deliverables
FAQs

Diamond Imprest DGFT Authorization

Overview

Diamond Imprest Authorization is a special facility provided by the Directorate General of Foreign Trade (DGFT) under India’s Foreign Trade Policy (FTP), primarily designed for the gems & jewellery export sector.
Under this scheme, eligible exporters are allowed to import rough or cut & polished diamonds without payment of customs duty, subject to the condition that the imported diamonds are used for manufacturing or processing and subsequently exported.
This authorization plays a crucial role in maintaining India’s dominance in the global diamond processing industry by enabling exporters to access high-quality raw materials from international markets while ensuring strict compliance with export obligations

Benefits of Diamond Imprest DGFT Authorization

1. Duty-Free Import Advantage
Allows import of diamonds without payment of basic customs duty, significantly reducing input costs for exporters.

2. Boost to Export Competitiveness
Lower procurement cost leads to better pricing in international markets, increasing competitiveness of Indian exporters.

3. Continuous Supply of Raw Materials
Ensures uninterrupted availability of diamonds for processing and manufacturing units.

4. Working Capital Efficiency
Since duties are exempted, businesses can optimize cash flow and reduce financial burden.

5. Global Market Access
Enables sourcing from leading diamond hubs like Belgium, UAE, and Africa for superior quality and variety.

6. Strengthens Export Ecosystem
Supports India’s gems & jewelry industry by encouraging value addition and exports.

How to apply for Diamond Imprest DGFT Authorization

Step 1: Eligibility Check
Assessment of exporter status, IEC validity, and past export performance to confirm eligibility under DGFT norms.

Step 2: Documentation Preparation
Collection and verification of all required documents including export details, financials, and supplier information.

Step 3: Application Filing
Filing of Imprest Authorization application on the DGFT portal with accurate product details (HS Code, value, quantity).

Step 4: DGFT Evaluation
DGFT reviews the application and may raise queries or request additional documents, which are handled promptly.

Step 5: Authorization Grant
Upon approval, the Imprest Authorization is issued, allowing duty-free import of diamonds.

Step 6: Import & Export Compliance
Importer must fulfill export obligations within the prescribed time by exporting processed diamonds/jewelry.

Documents required for Diamond Imprest DGFT Authorization

Import Export Code (IEC)
PAN Card of the entity
GST Registration Certificate
Bank Certificate / Cancelled Cheque
Business Constitution Documents (MOA/AOA/Partnership Deed)
Export Performance Details (past turnover, shipping bills)
Purchase Order / Proforma Invoice from foreign supplier
Product Details (HS Code, quantity, CIF value)
Manufacturing details / processing capability proof
Kimberley Process Certificate (for rough diamonds)

What You Get?

Eligibility assessment and consultation
End-to-end documentation support
DGFT application drafting and filing
Follow-up with DGFT authorities
Query handling and resolution
Final Imprest Authorization Certificate
Guidance on export obligation compliance

Tags: Diamond Imprest DGFT Authorization

Common Questions

Frequently Asked Questions

Diamond Imprest Authorization is a facility granted by the Directorate General of Foreign Trade (DGFT) that allows exporters to import rough or cut & polished diamonds without payment of customs duty, provided the imported goods are used for manufacturing or processing and then exported. It is specifically designed to support export-oriented units in the gems & jewellery sector.

Any exporter engaged in the gems & jewellery business with a valid Import Export Code (IEC) can apply. Typically, businesses with a proven export track record, proper infrastructure for processing, and compliance history are preferred. Both manufacturers and merchant exporters will be eligible depending on DGFT conditions.

Yes, export obligation is a core condition of Imprest Authorization. The importer must utilize the imported diamonds for value addition and export the finished goods within the prescribed time. Failure to meet this obligation can lead to recovery of duties along with penalties.

The export obligation period is usually defined in the authorization issued by DGFT and vary depending on policy provisions. In most cases, exporters are required to complete exports within a specific time frame (e.g., months), and extensions may be granted only under valid circumstances with proper justification.

No, diamonds imported under Imprest Authorization cannot be sold in the domestic market. They must strictly be used for manufacturing, processing, or value addition and then exported. Any diversion to the domestic market is treated as a violation of DGFT rules.