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Exemption to import of rough diamonds and other precious or semi-precious
stones, unset and uncut from Custom Duties
Notification
No. 35 dated 30th March 2001 (As amended by Notification No.
61/2001)
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), and in supersession of the notification of the
Government of India in the Ministry of Finance (Department of Revenue), No.
27/2001-Customs, dated the 5th March, 2001 (GSR 163(E), dated the 5th
March, 2001) except as respects things done or omitted to be done before such
supersession, the Central Government, being satisfied that it is necessary in
the public interest so to do, hereby exempts raw pearls, natural or cultured,
rough diamonds and other precious or semi-precious stones, unset and uncut,
falling under Chapter 71 of the
First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported
into India, from the whole of the duty of customs leviable thereon under the
said First Schedule and the additional duty, if any, leviable thereon under
section 3 of the said Customs Tariff Act, subject to the following conditions,
namely :-
(a)
the imports are made under a,-
(i)
Replenishment Licence issued under, and in accordance with, paragraph 8.2
of the Export and Import Policy;
(ii)
Replenishment Licence issued under, and in accordance with, paragraph
8.37 of the Export and Import Policy;
(iii)
Gem Replenishment Licence issued under, and in accordance with, paragraph
8.38 of the Export and Import Policy;
(iv)
Omitted;
(v)
Diamond Imprest Licence issued under, and in accordance with, paragraph
8.3 of the Export and Import Policy;
(vi)
Bulk Licence issued under, and in accordance with, paragraph 8.10 of the
Export and Import Policy; or
(vii)
Replenishment Licence issued under, and in accordance with, paragraph
8.13(a) of the Export and Import Policy, read with paragraph 8.26(d) of the
Handbook of Procedures or;
(viii)
Replenishment Licence issued under, and in accordance with, paragraph
9.13(e) and 9A-9(c) of the Export and Import Policy and 9.29(b) and 9A-9(b) of
the Handbook of Procedures;
(b)
in case of rough diamonds imported under the Diamond Imprest Licence
referred to at item (v) of condition (a), the importer executes a bond in such
form and for such sum and with such surety or security as may be specified by
the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the
case may be, binding himself -
(i)
to discharge the export obligation as fixed for the said licence in the
manner and as per procedure specified in the Export and Import Policy of
Handbook of Procedures, and to comply with the conditions stipulated in the
relevant provisions thereof;
(ii)
to pay on demand, in case of failure to achieve any part of export
obligation, an amount equal to the duty leviable on the value of the said rough
diamonds but for the exemption contained herein which can be attributed to
export obligation not fulfilled alongwith interest at the rate of 24% per annum
on the said duty from the date of clearance of such duty free imported rough
diamonds till the date of payment of such duty;
(c)
in case of rough diamonds imported under Bulk Licence referred to at item
(vi) of condition (a), the importer executes a bond in such form and for such
sum and with such surety or security as may be specified by the Assistant
Commissioner of Customs or Deputy Commissioner of Customs, as the case may be,
binding himself -
(i)
to account for disposal of said rough diamonds by way of supplies to
holders of valid Replenishment Licence/
Diamond Imprest Licence, 100% Export Oriented Undertakings/ Export Processing
Zone units/ Special Economic Zone units or re-export, in accordance with, and as
per procedure specified in the Export and Import Policy and Handbook of
Procedures, and to comply with the conditions stipulated in the relevant
provisions thereof;
(ii)
to pay on demand, the duty on the said rough diamonds as are not properly
accounted for by him alongwith interest at the rate of 24% per annum on the said
duty from the date of importation of the said rough diamonds till the date of
payment of such duty.
Explanation
I: For the purposes of item (ii) of condition (b), the value of
imported rough diamonds attributed to export obligation not fulfilled shall be
calculated from the total value of imports effected against the licence under
this notification by applying the ratio between unfulfilled export obligation
and total export obligation.
Explanation
II: For the purposes of this notification, -
(i)
�Export and Import Policy� means the Export and Import Policy, 1997-2002,
notified by the Government of India in the Ministry of Commerce, vide
notification No.1 (RE-99)/1997-2002 dated the 31st March, 2000, as
amended from time to time.
(ii)
�Handbook of Procedures� means the Handbook of Procedures, Volume I,
published vide Public Notice of the Government of India in the Ministry of
Commerce, No.1 (Re-2000)/1997-2002, dated the 31st March, 2000, as
amended from time to time.
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