India withdraws 2% duty on C&P diamonds sent abroad for grading/certification

Diamond manufacturers in India felt some respite as the Directorate General of Foreign Trade of India has notified that the 2 percent import duty on re-import of cut and polished diamonds which are sent abroad for certification and grading, has been abolished. Also, this waiver is applicable to those diamonds of 0.25 carat and above, which are sent to certain authorized laboratories aborad for certification/grading can be re-imported at zero duty. The laboratories include: the Indian Diamond Institute, Gujarat; American Gem Society Laboratories, Nevada; Central Gem Laboratory, Japan; Diamond Trading Company, U.K.; European Gemological Laboratory, U.S.; Gemological Institute of America, U.S.; Hoge Road Voor Diamond, Antwerp, (HRD); International Diamond Laboratories DMCC, Dubai; The Robert Mouawad Campus, International Gemological Institute, U.S.; and World Diamond Centre of Diamonds High Council, Belgium.

In January 2012, the Department of Revenue in India had imposed a 2 percent import duty on cut and polished diamonds. With the new waiver, an exporter with annual export turnover of $1 million (INR 50 million) for each of the last three years may export cut and polished diamonds abroad to any of the above laboratories without being charged the duty provided the stones are returned within three months of the date of export.