Indian Govt Agrees to Industry Demand Over Tax-Free Re-Imports

(IDEX Online News) – The Indian government is allowing the export of small polished diamonds for certification and re-import tax free, a major demand of the domestic diamond industry.

"Cut and polished diamonds of 0.10 carat or above can be exported and thereafter re-imported duty free after certification by authorized laboratories," the Directorate General of Foreign Trade (DGFT) said in a notification.

Gems and Jewellery Export Promotion Council Chairman Vipul Shah said the move would help create an increase in exports of small diamonds.

The Indian diamond sector had been pressing the government to permit the export of polished diamonds of 0.10 carats for grading and certification and then re-import them without tax, he explained.

"International players like the watch industry always ask for certified small sized diamonds and it was not allowed earlier. Now Indian small sized diamonds will get space in the international market," he said in comments cited by The Economic Times.