Diamond Imports Now Exempt from Integrated Tax and Compensation Cess

The Ministry of Commerce & Industry, through the Directorate General of Foreign Trade (DGFT), has issued a significant notification (Notification No. 49/2025-26) dated 09 December 2025, introducing amendments to Para 4.63 of the Foreign Trade Policy (FTP) 2023. This amendment brings notable changes to the import regulations under the Diamond Imprest Authorisation (DIA).

Key Highlights of the Amendment:

The revised Para 4.63 now provides additional exemptions for imports under the Diamond Imprest Authorisation. Previously, such imports were exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty, wherever applicable.

With the latest amendment, imports under DIA are now also exempted from:

Integrated Tax: Levied under sub-section (7) of Section 3 of the Customs Tariff Act, 1975.
Compensation Cess: Levied under sub-section (9) of Section 3 of the Customs Tariff Act, 1975.

Effect of the Notification:

This amendment further reduces the tax burden on imports under the Diamond Imprest Authorisation, making it more cost-effective for businesses engaged in diamond-related trade. By exempting Integrated Tax and Compensation Cess, the government aims to streamline trade processes and promote ease of doing business in the diamond sector.

Implications for Stakeholders:

The exemption is expected to benefit importers in the diamond industry by reducing overall import costs. This move aligns with the government’s vision to support and enhance the competitiveness of the diamond trade in India, a sector that contributes significantly to the country’s export economy.

Conclusion:

The amendment to Para 4.63 of FTP-2023 reflects the government’s commitment to fostering a favorable trade environment. Businesses operating under the Diamond Imprest Authorisation can now leverage these exemptions to optimize their operations and contribute to the growth of India’s foreign trade.

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Source: DGFT

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