Exemption to cut and polished diamonds and
Gemstones imported by holders of Diamond Imprest Licences or Gem
Replenishment licences respeclively
28-4-1999
Notification No. 42/99-Customs
- 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 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 or
Deputy 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 or Deputy 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.
Notification No. 42/99-Cus., dated 28-4-1999.as
amended vide Notification No.64/2002.-cus dated 24-6-2002
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