Notification No. 42 dated 28th April 1999 (As amended
by Notification No. 28th April 1999)
In
exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it
is necessary in the public interest so to do, hereby exempts the cut and
polished diamonds and Gemstones falling under Chapter 71 of the First Schedule
to the Customs Tariff Act, 1975 (51 of 1975) hereinafter referred to as the
said Act, upto five per cent of the Free on Board (FOB) value of the preceding
financial year of the exports of cut and polished diamonds or studded
Jewellery, as the case may be, when imported into India by the holders of
Diamond Imprest Licences issued under para 4.4.16 read with para 4.4.16.1 of
the Exim Policy, or by the holders of the Gem Replenishment Licences referred
to in para 4.58 of the HOP, as the case may be, from the whole of the duty of
customs leviable thereon under the First Schedule to the said Act and from the
whole of the additional duty and special additional duty, if any, leviable
thereon under section 3 and section 3A respectively of the said Act, subject to
the following conditions, namely: -
(i)������� the
importer, in case of cut and polished diamonds, shall have the status of Export
House or Trading House or Star Trading House or Super Star Trading House as per
the Exim Policy and in respect of the goods imported the importer is the actual
user within the meaning of para 9.5 of the Exim Policy;
(ii)������ the
maximum weight of any individual piece, in a consignment, of cut and polished
diamonds so imported shall not be more than 25 cents or 1/4th of a
carat and the entitlement of exemption under this notification shall not be
allowed to be carried forward;
(iii)������ the importer executes a bond in such form and for such sum as
may be specified by the Assistant Commissioner of Customs undertaking -
(a)������ to re-export the goods so imported within
one year from the date of import or during such extended period as the
Assistant Commissioner of Customs may allow;
(b)������ to
pay on demand duty of customs as leviable and the penalty and fine, if any, on
the quantity of diamond and gemstones which are not exported, within the
specified period of one year or extended period under (a) above, as the case
may be.
Explanation:� for the purposes of this notification, -
(i)������� "Export
- Import Policy" means the Export and Import Policy, 1st April,
2002-31st March, 2007 published by the Government of India in the
Ministry of Commerce and Industry vide Notification No. 1/2002-07, dated 31st
March, 2002, as amended from time to time.
(ii)������ "Handbook
of Procedures Volume I " means the Handbook of Procedures Volume-I,
2002-2007 published by the Government of India in the Ministry of Commerce and
Industry vide Public Notice No. 1/2002-2007, dated the 31st March
2002.
(iii)������ Cut
and polished diamonds shall include semi-processed diamonds, half-cut diamonds
and broken diamonds in any form.