Diamond & Jewellery Dollar Accounts

4A.19

Firms and companies dealing in the 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 3 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. 5 crore or above during preceding three licensing years may also carry out their business through designated Diamond Dollar Accounts.

The Diamond Dollar Account Scheme shall operate under the current licensing scheme of this chapter. This scheme shall be optional and those importers/exporters who wish to continue to use Rupee Accounts shall be allowed to do so under the existing policies.

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 the Rupee Account of the exporter. Details of this Diamond Dollar Accounts Scheme (DDAS) are given in the Handbook of Procedures (Vol.1). The procedure outlined in the Handbook of Procedures (Vol.1) shall also apply to diamond studded jewellery.

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