DGFT Revises Diamond Imprest Authorization Rules Under FTP 2023

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Dated: 20.08.2025

DGFT Revises Diamond Imprest Authorization Rules Under FTP 2023

The Government of India has introduced significant amendments to the Foreign Trade Policy (FTP) 2023 through Notification No. 25/2025-26, dated August 2025. These changes, aimed at enhancing flexibility and streamlining processes for diamond exporters, focus on Para 4.61 and Para 4.63 of the FTP. Below, we summarize the key updates and their implications.

Key Amendments

1. Para 4.61: Submission of Chartered Accountant Certificate 

Previously, exporters with Two Star Export House status or above, achieving a minimum export performance of US$ 15 million in Cut & Polished Diamonds annually for the past three financial years, were required to submit their GST and Income Tax returns to obtain a Diamond Imprest Authorization.

The revised policy introduces flexibility by allowing exporters to submit a Chartered Accountant certificate in place of the latest Income Tax Return (ITR) if the ITR for the preceding year is not finalized. However, exporters must ensure that the finalized ITR is submitted by 31st December of the application year. This change simplifies the application process for exporters who may face delays in filing their ITR.

2. Para 4.63: Exemption from Duties 

The updated policy clarifies the exemptions available under the Diamond Imprest Authorization (DIA). Imports under DIA are exempted from the following:

Basic Customs Duty
Additional Customs Duty
Education Cess
Anti-dumping Duty
Countervailing Duty
Safeguard Duty
Transition Product Specific Safeguard Duty (where applicable)

However, exemption from Integrated Tax and Compensation Cess under Section 3 of the Customs Tariff Act, 1975, is no longer provided. This adjustment aligns the policy with broader tax regulations.

Effect of the Notification 

The amendments aim to:

Provide flexibility to exporters by allowing the submission of a Chartered Accountant certificate in case of delays in filing ITR.
Streamline the import process under DIA by clarifying duty exemptions.
Ensure compliance with tax regulations by removing exemptions for Integrated Tax and Compensation Cess.

Implications for Exporters

These changes are expected to benefit diamond exporters by reducing administrative hurdles and providing clarity on duty exemptions. Exporters must ensure timely submission of their finalized ITR to avoid disruptions in their authorization process. Additionally, they should factor in the removal of Integrated Tax and Compensation Cess exemptions when planning their imports.

Conclusion

The amendments to FTP-2023 reflect the government’s commitment to supporting the diamond export industry while ensuring compliance with tax regulations. Exporters are encouraged to review these changes carefully and adapt their processes to leverage the benefits of the updated policy.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

Source: DGFT

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