Diamond Imprest Authorization Scheme

January 22, 2025

On April 1, 2025, India will implement the Diamond Imprest Authorization (DIA) Scheme. The scheme is a strategic response to global beneficiation policies that require diamond manufacturers to establish local processing facilities. It will take effect from April 1, 2025.

Scheme Overview

This DIA Scheme allows for the duty-free import of natural cut and polished diamonds, aiming to enhance value addition and stimulate exports.
It permits duty-free import of diamonds under ¼ Carat.
Exporters must add 10% value before exporting.
Eligible exporters include those with Two Star Export House status and annual exports of $15 million or more.

Exemptions and Benefits

Imports under the scheme are exempt from various duties, including Basic Customs Duty and Integrated Tax.
This exemption aids in reducing costs for diamond importers, encouraging a competitive market.

Target Audience

The scheme primarily benefits Indian diamond exporters, especially MSMEs. It aims to support smaller firms in competing with larger entities in the diamond industry.

Global Context

This initiative aligns with global trends in diamond beneficiation, particularly in countries like Botswana and Namibia. These nations enforce local processing requirements to enhance domestic value addition.

Economic Impact

The scheme seeks to prevent capital flight from India to diamond-mining countries.
It aims to create jobs in diamond processing and boost the domestic industry, which has faced export declines and job losses.

Industry Challenges

The Indian diamond industry has been struggling with reduced exports and employment. The DIA Scheme is designed to rejuvenate the sector by providing necessary support and incentives.

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