Circular No. 25 dated 8^th July 1997

The revised EXIM Policy 1997- 2002 in Para 8.32 provides for re-export/ supply of dead stock or broken stones/ rough diamonds upto 5% of the value of import/ indigenously procured such items by holders, (who are EOU/ EPZ units) of valid Replenishment/ Diamond Imprest Licence. This means the units who had imported these goods against the REP of Diamond Imprest Licence or procured these goods indigenously; in addition to the export of cut and polished items, can also re-report 5% of the dead stock or broken stones or rough diamonds abroad. The Notifn. No. 177/ 94-Cus. dated 21.10.94 and 3/ 88-Cus. 14.1.88 has been amended by Notifn. No. 33/ 97-Cus dated 1.4.97 providing for re-export or export of dead stock or broken stones upto 5% of the value of the import or indigenous stones. To clarify, upto 5% of the value of both imported stones and indigenously procured stones can be exported.

2.      A doubt had arisen, as amended Notifn. does not mention the words 'rough diamonds', which is figuring in the Policy, whether rough diamonds can be exported upto 5% of the value or not. The issue has been examined in the Board. It is seen that rough diamond by itself is not covered in the restricted or prohibited items of export. As such, rough diamonds are freely exportable. Thus a holder of REP/ Diamond Imprest Licence would be eligible to export upto 5% of the value of the imported or indigenously procured rough diamond by him, if he has got permission from the Development Commissioner of the EOU/ EPZ units concerned.