Cus Ntf No.42/1999 Date 28/4/1999
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 Foreign Trade Policy [OLD- 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 section 3 and section 3A respectively of the said Act,subject to the following conditions, namely:-

(In this para bold words has been substituted vide Cus Ntf No.64/2002 date 24/06/2002.)

(i) the importer, in case of cut and polished diamonds, shall have any status of Star Export House as categorized in para 3.5.2 of the Foreign Trade Policy and in respect of the goods imported, the importer is the actual user within the meaning of para 9.5 of the Foreign Trade Policy

[OLD-
(i) the importer, in case of cut and polished diamonds shall have the state of Export House or Trade 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:]

(In Condn.(i) bold words has been substituted vide Cus Ntf No.64/2002 date 24/06/2002.)

(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 from and for such sum as may be specified by the Assistant Commissioner of Customs undertaking -

(a) to re-export the goods so imported within one year the date of import or during such extended period as the Assistant Commissioner of Customs may allow;

(b) to pay on demand duty of customs as leviable and the penalty and fine, in 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) "Foreign Trade Policy" means the Foreign Trade Policy, 1st September, 2004- 31st March, 2009 published by the Government of India in the Ministry of Commerce and Industry vide notification No.1/2004-09, dated the 31st August, 2004, as amended from time to time.

(ii) "Handbook of Procedures Volume" means the Handbook of Procedures Volume I published by the Government of India, in the Ministry of Commerce and Industry vide Public Notice No. 1/2004-09, dated the 31st August, 2004.

(In opening paragraph word "Foreign Trade Policy", condition (i) & in Explanation (i) and (ii) has been subsituted vide CUS NTF NO. 87/2004 DATE 06/09/2004)

[OLD-
(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.

(Explanation has been substituted vide Cus Ntf No.64/2002 date 24/06/2002.)

[OLD Explanation:- For the purpose of this notification, the expression "EXIM Policy" means the Export and Import Policy, 1 April 1997 – 31st March 2002, and the pression "HOP" means Hand Book of Procedures Vol.I. 1 April 1997 – 31st March 2002, notified in the Gazette of India, Extraordinary by Government of India, Ministry of Commerce, vide notification No.1/1997-2002, dated the 31st March 1999 and public notice No. RE-99/1997-2002, dated the 31st March 1999 respectively.]

Sd/-
(Rajendra Sinha)
Under Secretary of the Government of India

EXPLANATORY MEMORANDUM

The present Notification No. 42/99-Customs, dated the 28th April, 1999, seeks to provide for duty free import of cut & polished diamonds and Gemstones upto 5% of Free On Board (FOB) value of preceding financial year"s export to the Diamond Imprest Licence holders and Gem Replenishment Licence holders respectively. This facility was not available hitherto. This notification has been issued with a view to again the revised Export & Import Policy as on 1st April, 1999 and to give a fillip to the exports of cut & polished diamonds, Gem & Jewellery."

(Please refer Cus Cir No.37/2002 Date 28/06/2002)

(Notification No.42/99 has been last amended vide CUS NTF NO.64/2002 DATE 24/06/2002)

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