Govt. of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Directorate General of Export Promotion
New Delhi, the 24th November, 2009
Circular No. 31/2009-Cus
All Chief Commissioners of Customs/Central Excise,
All Commissioners of Customs /Central Excise.
Madam /Sir
Sub: Setting up Private/Public bonded warehouse for diamonds and gemstones for
import and re-export therefrom-reg.
Attention is invited to erstwhile scheme for setting up private/public bonded
warehouse in SEZ/DTA for import and re-exports of cut & polished diamonds, cut &
polished colored gems stones, uncut & unset precious & semi precious gemstones,
subject to achievement of minimum value addition of 5% under paragraph 4A.18 of
the Foreign Trade Policy 2004-09. This scheme has now been deleted from the
Foreign Trade Policy 2009-14 announced on 27.08.2009 by DGFT.
- The erstwhile scheme (para 4A.18 of FTP 2004-09) was in operation vide
Board’s
circular No. 28/98-Cus dated 24.04.1998 and
clarification issued vide
circular No. 47/99-Cus dated 27.07.1999.
- In view of withdrawal of the scheme for setting up private/public bonded
warehouse for diamonds and gemstones from Foreign Trade Policy 2009-14, no new
private/public bonded warehouse license can be allowed for bonding of diamonds
and gemstones for import and export thereform. Further, such a facility can also
not be allowed for non-dutiable goods in term of section 57 of the Customs Act,
1962.
- Accordingly, the circular No. 28/98-Cus dated 24.04.1998 stands withdrawn to
the above extent.
- As a transitory arrangement for the existing warehouses to surrender the
bonding license, a period of three months is granted from the date of issue of
this circular. For this three months period, diamonds and gemstones may be
deemed as dutiable goods for the purpose of regulatory control and the procedure
of ex-bonding of dutiable goods shall be followed. However, bonding of these
goods shall not be allowed in the existing warehouses.
- Wide publicity may please be given to these instructions by way of issuance
of Public/Trade Notice. Suitable Standing orders/instruction may be issued for
guidance of the field officers. Difficulties, if any, in implementation of these
instructions, may be brought to the notice of the Directorate General of Export
Promotion.
- This issues with the approval of Central Board of Excise & Customs.
- Receipt of this circular may kindly be acknowledged.
Yours faithfully
(Praveen Mahajan)
Director General
F.No.: DGEP/G&J/490/2006