Notification No. 25/2025-26, Dated 19-08-2025
Amendment to Para 4.61 of FTP-2023
The Directorate General of Foreign Trade (DGFT) has revised Para 4.61 of the Foreign Trade Policy, 2023 (FTP-2023). As per the new amendment, exporters holding a Two Star Export House status or above, and consistently achieving a minimum export performance of US$ 15 million in Cut & Polished Diamonds in each of the last three financial years, are now eligible to obtain a Diamond Imprest Authorization. This authorization allows qualified exporters greater access to raw materials for their trade while ensuring that only established players with proven export records benefit from the scheme.
Submission of Income Tax Return or CA Certificate
Under the revised guidelines, exporters applying for a Diamond Imprest Authorization are required to submit their latest Income Tax Return (ITR) as part of the application process. However, in cases where the ITR for the preceding year has not been finalized, applicants are permitted to submit a Chartered Accountant’s (CA) certificate instead. A condition has been laid down that the finalized ITR must be submitted by 31st December of the application year, thereby balancing flexibility for exporters with compliance requirements.
Amendment to Para 4.63 of FTP-2023
DGFT has also amended Para 4.63 of the FTP-2023, clarifying the customs duty exemptions available for imports made under a Diamond Imprest Authorization. Such imports will continue to enjoy exemptions from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty, wherever applicable. This exemption framework significantly reduces the cost burden on exporters and enhances competitiveness in the global diamond trade.
Applicability of Integrated Tax and Compensation Cess
While a wide range of customs duty exemptions are available under the authorization, DGFT has explicitly stated that imports will not be exempted from Integrated Tax and Compensation Cess. These levies will remain applicable on all imports made under the scheme. This ensures that the government maintains revenue from these specific tax heads, while still providing substantial relief through exemption from other duties. The notification has been made effective immediately, and exporters can avail the benefits under the revised provisions without delay.
