DGFT Amends Para 4.61 and Para 4.63 of Foreign Trade Policy 2023.

by preface

August 20, 2025

DGFT, Notification

The Directorate General of
Foreign Trade (DGFT), in exercise of powers under Section 3 and Section 5 of
the Foreign Trade (Development & Regulation) Act, 1992, read with paragraph
1.02 of the Foreign Trade Policy (FTP) 2023, has introduced important amendments
to Para 4.61 and Para 4.63 of FTP-2023. These changes come into effect
immediately and directly impact exporters of Cut & Polished Diamonds
who are availing the Diamond Imprest Authorisation (DIA).

Para No.	Exiting Para:	Revised Para:
4.61	An exporter with a Two Star Export House status or above, and having achieved a minimum export performance of US$ 15 million in Cut & Polished Diamonds each year for the past three financial years and having filed all GST and Income Tax returns for those years, may be granted a Diamond Imprest Authorization. This authorization allows the import of Natural Cut & Polished Diamonds up to 5% of the average annual export performance of Cut & Polished Diamonds over the previous three financial years subject to a maximum value of US$ 15 million.	An exporter with a Two Star Export House status or above, and having achieved a minimum export performance of US$ 15 million in Cut & Polished Diamonds each year for the past three financial years and having filed all GST and Income Tax returns for those years, may be granted a Diamond Imprest accountant certificate may be submitted in case ITR of the preceding year is not finalized. However, the same shall be Authorization. Chartered submitted by 31st December of the application year. This authorization allows the import of Natural Cut & Polished Diamonds up to 5% of the average annual export performance of Cut & Polished Diamonds over the previous three financial years subject to a maximum value of US$ 15 million.

Para No.	Exiting Para:	Revised Para:
4.63	Imports under Diamond Imprest Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Such, imports are also exempt from whole of the Integrated Tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975).	Imports under Diamond Imprest Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable.

Effect of the Notification

Flexibility for Exporters: Exporters now
have an alternate route by submitting a CA certificate instead of
the latest ITR, ensuring smooth application processing.
Compliance Timeline: Mandatory submission of
proof of ITR filing by 31st December adds a clear compliance
deadline.
Duty Structure Change: While major customs
duty exemptions remain, the withdrawal of IGST and Compensation Cess
exemption increases import costs under DIA.