Through a circular from the Central Board of Excise and Customs (CBEC), the   Government of India has put a framework in place to set up the first Special Notified Zone (SNZ), in a space dedicated specifically for the purpose, within the Bharat Diamond Bourse (BDB) at the Bandra-Kurla Complex (BKC) in Mumbai.  The SNZ will be given effect from July 1st, 2015.

The circular notes: “the Board has decided to introduce necessary provisions to allow and facilitate viewing/auction/sale of Rough Diamonds at Bharat Diamond Bourse, Mumbai w.e.f  1.7.2015”.

The BDB has been notified as a custodian for the scheme under the Customs Act and will designate an area which will “house facilities for receipt, storage, viewing, auctions/sales of imported Rough Diamonds,” the CBEC circular states, adding, “It shall include all necessary commercial, security & customs related facilities incidental to these activities.”

The BDB and the GJEPC intend to jointly set up a SPV, the India Diamond Trading Centre, which will be entrusted with the job of “the handling of rough diamonds, imported for auctions/sales”.

Import under this scheme will be only allowed by air cargo;  import of diamonds by  hand carriage or express courier service mode will not be permitted.

“The rough diamonds arriving for viewing / auctions / sale by bidding/sale by negotiation will be accompanied by a declaration of value by way of an invoice, packing list, documents of insurance and a Kimberley Process Certificate as provided in Circular no.53/2003-Cus dated 23rd June, 2003,”  outlines the CBEC circular.

A detailed procedure has been outlined for the viewing, sales and re-exports, along with the dos and don’ts.

“Bharat Diamond Bourse and their duly appointed handling agent, M/S India Diamond Trading Centre shall be responsible for the receipt, sales, re-exports, custody, delivery, reexport and accounting of the rough diamonds imported for viewing and/or sale in such form as prescribed by the jurisdictional Commissioner of Customs,” the CBEC says. 

The companies entitled to avail of the SNZ facility are “those permitted vide RBI’s Circular No. 116 dated 1.4.2014 or as amended from time to time”.

As of now there are 21 companies included in the permitted list including De Beers, Rio Tinto, Alrosa, Gokhran, BHP Billiton, Endiama, Dominion Diamond Marketing, Namibia Trading Company etc.