|
Regarding export of rough diamonds under Exim Policy, 1997-2002
Circular No.
64dated 25th November 1997
A doubt had arisen
as to whether rough diamonds purchased from the open market can be exported
without any restriction. The issue was examined in consultation with Ministry of
Commerce and it was clarified by the Board that there should be no bar for
export of rough diamonds even if procured from domestic market provided the
payment is received is freely convertible currency.
2.
The above question had also been examined by the Directorate General of
Foreign Trade in consultation with the Ministry of Commerce. The DGFT has now
clarified the issue under their F.No. 1/ 9/ 44/ 97-98/ PC-II/ 527 dated 18.6.97
(copy enclosed for ready reference).
3
I am directed to inform you to follow the above said clarification for
the export of rough diamonds.
Clarification
on exports or rough diamonds
Kindly refer
to your various letters on the subject. We have also received some other
representations from individual exporters on the above subject. In consultation
with the Ministry of Commerce, it has been decided to clarify as follows: -
(1) Third party exports of rough diamonds are
allowed in terms of paragraph 8.2 of Exim Policy, 1997-2002. However, theexport of rough diamonds will be further
governed by the provisions of para 8.9 of Handbook of Procedures (Vol.1).
(2) Third party imports of rough diamonds are not
allowed. Even where the licence holder wants to take the help of agent, then
even this agent has to work only as a facilitator and not as an importer as per
para 5.7 of Handbook of Procedures(Vol.1).
(3) As per para 8.9 of Handbook of Procedures
(Vol.1) the licensing authority while issuing the REP licence shall makesuitable endorsement on the original bill of
entry to avoid further use of the same bill of entry. The customs are notrequired to verify bill of entry because
export of rough diamonds will be either under para 8.9 of Handbook of Proceduresin which case they will have to come to Joint DGFT Office or under para
11.8 of Exim Policy in which case the operation will be from custom bonded
warehouses.
(4) The value of rough diamonds are allowed as
per para 8.9 of Handbook of Procedures (Vol.1) and in case export in excessof limit prescribed under para 8.9 of
Handbook of Procedures (Vol. 1) is to be done then it will have to be done under
para11.8 of Exim Policy,
1997-2002. This is because the rough diamonds are appearing in the Negative List
of Imports andsince these rough diamonds are imported and these have to be exported
within the parameters of paragraph 8.9 ofHandbook of Procedures (Vol. 1) read with
paragraph 11.8 of Exim Policy 1997-2002.
(5) Export can be on the basis of several bill of
entries clubbed together however, the total value of export of rough diamonds
should not exceed 10% of the value of imports made against relevant bill of
entry.
(6) As regards export of rough diamonds the
exporter shall furnish bill of entry in his own name for imports of roughdiamonds effected on or after 1.4.97
2. This issues with
the approval of DGFT/ Ministry of Commerce.
|