4.50

Diamond & Jewellery Dollar Accounts

(a) Firms and companies dealing in purchase / sale of rough or cut and polished diamonds / precious metal jewellery plain, minakari and / or studded with / without diamond and / or other stones with a track record of at least two years in import or export of diamonds / coloured gemstones / diamond and coloured gemstones studded jewellery / plain gold jewellery and having an average annual turnover of Rs.3 crore or above during preceding three licensing years may also carry out their business through designated Diamond Dollar Accounts (DDA).

(b) Dollars in such accounts available from bank finance and / or export proceeds shall be used only for:

(i) Import / purchase of rough diamonds from overseas/ local sources;

(ii) Purchase of cut and polished diamonds, coloured gemstones and plain gold jewellery from local sources;

(iii) Import / purchase of gold from overseas / nominated agencies and repayment of dollar loans from the bank; and

(iv) Transfer to Rupee Account of exporter. Details of this DDA Scheme are given in Handbook of Procedures.

(c) A non DDA holder is also permitted to supply cut and polished diamonds to DDA holder, receive payment in dollars and convert the same into Rupees within 7 days. Cut and polished diamonds and coloured gemstones so supplied by non-DDA holder will also be counted towards discharge of his export obligation and/ or entitle him to replenishment Authorisation.