CBIC approves new Special Notified Zone at Surat Diamond Bourse for rough diamond trade

Surat: The Central Board of Indirect Taxes and Customs (CBIC) has approved the setting up of a new Special Notified Zone (SNZ) at the Surat Diamond Bourse (SDB) in Khajod to facilitate the import, viewing, auction and sale of rough diamonds by eligible foreign mining companies.

The new SNZ will be located on the second floor of Tower-B at the Surat Diamond Bourse in Dream City. It will replace the existing SNZ at Gujarat Hira Bourse in Ichhapore, Surat. The shift was proposed by the Gems and Jewellery Export Promotion Council (GJEPC) through its wholly owned subsidiary, Surat International Diatrade Centre (SIDC).

According to the CBIC circular issued on September 28, the facility will allow eligible foreign mining companies to bring rough diamonds to India for viewing, tendering, auction or sale to Indian diamond manufacturers and traders. Unsold diamonds can be re-exported.

The new facility will begin operations only after written authorisation from the Principal Commissioner or Commissioner of Customs, Ahmedabad. The premises have already been physically inspected by Customs officials, and the layout plan has been certified by a registered architect.

Rough diamonds will be allowed to enter India through air cargo only. The imported parcels will initially be transhipped from the Air Cargo Complex at Sahar, Mumbai, to the Surat Diamond Bourse under existing customs procedures and safeguards.

At the SNZ, the parcels will be examined and their carat weight verified against the import invoice, packing list and Kimberley Process Certificate before being sealed and kept in a strong room.

Traders will be allowed to visit the facility to view the rough diamonds and participate in auctions or sales, subject to eligibility and security conditions. Unsold diamonds will have to be re-exported within 75 days of import, while sold lots will be cleared only after assessment, payment of applicable customs duty and an Out-of-Charge order.

The CBIC has also directed that the process to de-notify the existing SNZ at Gujarat Hira Bourse, Ichhapore, should begin within 10 days of the new facility becoming operational. The transition is to be carried out without disrupting the functioning of the SNZ. DeshGujarat