Firms and companies dealing in the purchase/sale of rough or cut and polished diamonds with a track record of at least 3 years in import or export of diamonds 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 from local sources, (iii) repayment of the 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 (Vol.1).

The licence holders of Public/Private Bonded Warehouses operating under paragraph 8.13 of EXIM Policy shall also be eligible to transact their business of import, supply and re-export of rough diamonds through the designated Diamond Dollar Account. Even for the Private/Public Bonded Warehouses, the Scheme is optional and if they wish to continue to use the Rupee Account, they shall be allowed to do so under the existing EXIM Policy. The eligibility criteria mentioned above for diamond firms and companies shall not be applicable in case of Private/Public Bonded Warehouses.

(above para has been added vide Ntf. No. 37(RE-00)/1997-2002, dt. 11-10-2000)