The new zone has been proposed by the Gem & Jewellery Export Promotion Council (GJEPC) through its wholly owned subsidiary, Surat International Diatrade Centre (SIDC). It will facilitate the import of rough diamonds by eligible foreign mining companies for viewing, tendering, auctions and sales to Indian diamond manufacturers and traders. Unsold lots can be re-exported.

The facility will become operational after written authorisation from the Principal Commissioner or Commissioner of Customs, Ahmedabad. Customs officials have already inspected the premises, while the layout has been certified by a registered architect.

Rough diamonds will enter India through air cargo, with parcels initially transhipped from Mumbai’s Sahar Air Cargo Complex to the Surat Diamond Bourse under customs safeguards. At the SNZ, Customs will verify the parcels, including carat weight against the invoice, packing list and Kimberley Process Certificate, before they are sealed and placed in a strong room.

Traders will be permitted to view the goods and participate in auctions or negotiated sales subject to eligibility and security requirements. Sold lots will be cleared after customs assessment, payment of applicable duties and an Out-of-Charge order. Unsold diamonds must be re-exported within 75 days of import.

The existing Ichhapore SNZ will be de-notified after the Khajod facility becomes operational, with CBIC directing that the transition should not disrupt the functioning of the rough diamond trading facility.