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Core Purpose

The Central Government amends Para 4.61 and Para 4.63 of the Foreign Trade Policy, 2023, with immediate effect, through this notification.

Detailed Summary

The Ministry of Commerce and Industry (Department of Commerce), Directorate General of Foreign Trade, issued Notification No. 25/2025-26 on 19th August, 2025, identified as S.O. 3806(E). In exercise of powers under Section 3 and Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy, 2023, the Central Government has amended Para 4.61 and Para 4.63 of FTP-2023. The amendment to Para 4.61 allows exporters with a Two Star Export House status or above, having achieved a minimum export performance of US$ 15 million in Cut & Polished Diamonds each year for the past three financial years, to submit a Chartered Accountant certificate in place of a non-finalized Income Tax Return (ITR) for the preceding year when applying for a Diamond Imprest Authorization; however, the ITR must be submitted by 31st December of the application year. The authorization still allows import of Natural Cut & Polished Diamonds up to 5% of average annual export performance over three financial years, subject to a maximum value of US$ 15 million. The amendment to Para 4.63 removes the exemption 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) for imports under Diamond Imprest Authorization. Imports under DIA remain exempted from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-22082025-265632 EXTRAORDINARY PART II-Section 3-Sub-section (ii) PUBLISHED BY AUTHORITY No. 3702] NEW DELHI, WEDNESDAY, AUGUST 20, 2025/SHRAVANA 29, 1947 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (Directorate General Of Foreign Trade) NOTIFICATION New Delhi, the 19th August, 2025 No. 25/2025-26 Subject: Amendment to Para 4.61 and Para 4.63 of FTP-2023-reg. S.O. 3806(E)-In exercise of powers conferred by Section 3 and Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 1.02 of the Foreign Trade Policy, 2023 (as amended from time to time), the Central Government hereby amends Para 4.61 and Para 4.63 of FTP-2023, with immediate effect, as under: +-----+-------------------------------------------------------------------------------------------------+--------------------------------------------------------------------------------------------------+ | Para| Exiting Para | Revised Para | | No. | | | +-----+-------------------------------------------------------------------------------------------------+--------------------------------------------------------------------------------------------------+ | 4.61| An exporter with a Two Star Export House status or | An exporter with a Two Star Export House status or | | | above, and having achieved a minimum export | above, and having achieved a minimum export | | | performance of US$ 15 million in Cut & Polished | performance of US$ 15 million in Cut & Polished | | | Diamonds each year for the past three financial years | Diamonds each year for the past three financial years | | | and having filed all GST and Income Tax returns for | and having filed all GST and Income Tax returns for | | | those years, may be granted a Diamond Imprest | those years, may be granted a Diamond Imprest | | | Authorization. This authorization allows the import of | Authorization. Chartered accountant certificate may be | | | Natural Cut & Polished Diamonds up to 5% of the | submitted in case ITR of the preceding year is not | | | average annual export performance of Cut & Polished | finalized. However, the same shall be submitted by | | | Diamonds over the previous three financial years | 31st December of the application year. This | | | subject to a maximum value of US$ 15 million. | 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. | +-----+-------------------------------------------------------------------------------------------------+--------------------------------------------------------------------------------------------------+ | 4.63| Imports under Diamond Imprest Authorisation are | Imports under Diamond Imprest Authorisation are | | | exempted from payment of Basic Customs Duty, | exempted from payment of Basic Customs Duty, | | | Additional Customs Duty, Education Cess, Anti- | Additional Customs Duty, Education Cess, Anti- | | | dumping Duty, Countervailing Duty, Safeguard Duty, | dumping Duty, Countervailing Duty, Safeguard Duty, | | | Transition Product Specific Safeguard Duty, wherever | Transition Product Specific Safeguard Duty, wherever | | | applicable. Such, imports are also exempt from whole | applicable. | | | 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). | | +-----+-------------------------------------------------------------------------------------------------+--------------------------------------------------------------------------------------------------+ Effect of the Notification: The import under DIA shall be exempted from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Exemption from whole of the Integrated Tax and Compensation Cess is not provided. Flexibility has been introduced by permitting submission of a Chartered Accountant certificate in place of the latest Income Tax Return, if it is not yet filed, with the condition that the proof of submission of said ITR must be submitted by 31st December of the application year. This issues with the approval of the Minister of Commerce & Industry. [F. No. 01/94/180/152/AM20/PC-4] AJAY BHADOO, Director General of Foreign Trade & Addl. Secy.

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