Bharat Diamond Bourse Mumbai Notified for Rough Diamond Import, Trading and
Re-export w.e.f. 1 July 2015
[CBEC Circular No. 17 dated 26th May 2015]
Subject:- Import, trading & re-export of rough diamonds by notified
entities in Bharat Diamond Bourse, Bandra Kurla Cargo Complex, Mumbai.
The Central Government
had announced its intent to permit the trading of rough diamonds in India by
leading diamond mining companies of the world by creating a ‘Special Notified
Zone’. For this purpose, Dept. of Commerce / GJEPC have sought a regulatory
framework under the Customs Act. After consultations with other regulators,
namely, DGFT, RBI and with industry, namely, Bharat Diamond Bourse, and GJEPC,
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.
2. The Precious Cargo Customs Clearance Centre at Bandra Kurla Complex, Mumbai (or
PCCCC for short) is already notified u/s 8 of the Customs Act, 1962 and
Bharat Diamond Bourse (BDB for short) is duly notified as a custodian u/s 45 of
the Customs Act. BDB has proposed to identify an area, within the Bharat
Diamond Bourse Complex which shall house facilities for receipt, storage,
viewing, auctions/sales of imported Rough Diamonds. It shall include all
necessary commercial, security & customs related facilities incidental to
these activities. This area shall henceforth be referred as a “Special Notified
Zone”, (or SNZ, for short). The Bharat Diamond Bourse shall submit the floor
plan, proposed facilities, including security related features, for approval
under section 8 and in terms of the requirements under “Handling of Cargo in
Customs Area Regulation, 2009” to the jurisdictional Commissioner of Customs.
3. M/S Bharat Diamond Bourse, in their capacity
as a Custodian, appointed under section 45 of the Customs Act, 1962, propose to
outsource the handling of rough diamonds, imported for auctions/sales, to a
special purpose vehicle, namely, India Diamond Trading Centre, constituted by
GJEPC and Bharat Diamond Bourse. For this purpose, BDB shall make an
application before the jurisdictional Commissioner of Customs for approval in
terms of circular 45/2013 - Cus dated 31.12.2013.
4. The list of
companies entitled to avail of the facility of consigning rough diamonds to
India for the purpose of viewing and sales from the SNZ shall be those as are
permitted vide RBI’s Circular No. 116 dated 1.4.2014 or as amended from time to
time.
5. The import of rough diamonds will
be permitted through Air cargo mode only. No import through hand carriage or
express courier service mode will be permitted.
6. 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.
7. The imported parcels meant for the
purpose of viewing/auctions/sales will be initially transhipped from strong
room of BDB at Air Cargo Complex at Sahar to the
Strong Room at PCCCC, BDB, Bandra Kurla
Complex, Mumbai as per procedure being followed and
notified by way of existing trade notices / standing orders. The imported
parcels will be examined
by Customs in the presence of
the representatives of the mining company, M/S Bharat Diamond Bourse and M/S India
Diamond Trading Centre for tallying the carat weight with the import invoice,
packing list and Kimberley Certificate. Thereafter the parcel will be sealed
and transferred to the strong room at the SNZ.
8. The special notified zone will be
accessible to traders to visit for viewing the rough diamonds and/or auctions /
sale by bidding/sale by negotiation. The GJEPC shall define the eligibility
conditions for such visitors, under intimation to the Customs. All persons
permitted to visit the SNZ shall be issued with photo identity cards by M/S
India Diamond Trading Centre. Suitable security arrangements for controlling
access and ensuring against any pilferage, damage or unauthorised removal of
goods from the Customs area shall be undertaken by Bharat Diamond Bourse/ M/S
Indian Diamond Trading Centre.
9. The working hours of the SNZ and
timings for viewing, auctions/sale shall be notified by Bharat Diamond Bourse /
M/S India Diamond Trading Centre in consultation and approval of the
jurisdictional Commissioner of Customs.
10. Any such viewing, auctions/sales
may result in all imported lots being sold or only some of the lots being sold
or all lots remaining unsold. The sales of rough diamonds from the SNZ shall be
of a single or multiple lots but no sale of a sub-lot will be allowed. During the
viewing/sale process, mixing of lots of the Rough Diamonds will not be
permitted.
11. After the completion of
viewing/sales of the rough diamonds at the SNZ, these will be re-packed, lot
wise, in the same manner as had been received in the SNZ from the strong room
of the BDB at the PCCCC, no later than 60 days from the date of import. The
reconstituted parcels shall be sealed in the presence of customs,
representatives of the mining company, M/S Bharat Diamond Bourse and M/S India
Diamond Trading Centre, after tallying the carat weight with the import
invoice, packing list and Kimberley Certificate and transferred to the strong
room of BDB at PCCCC under customs escort.
12. A successful auction/sale by
bidding/sale by negotiation shall lead to a price discovery in respect of a lot
or lots. The diamond mining company shall issue a sale invoice in respect of
such lot or lots, as are sold. The sale invoice, so issued by the diamond
mining company, shall be the relevant document for the declaration of value u/s
Section 14 of the customs Act, 1962. Such a lot or lots shall be cleared by the
buyer by filing a bill of entry at the PCCCC.
13. The goods which are not sold shall
be exported under a shipping bill, filed not later than 75 days of the date of
import. In view of the anticipated regularity of such transactions of export of
the unsold diamonds, no permission for filing shipping bill would have to be
obtained. India Diamond Trading Centre acting “on A/C” of the consignor (Mining
company) shall file a shipping bill for export of the unsold diamonds at PCCCC.
Export of the unsold rough diamonds will be permitted to any destination
outside India.
14. The shipping bill may be filed
using the Import Export Code number obtained by M/S India Diamond Trading
Centre and in conformity with the regulations under the FTP and RBI.
15. 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, re-export
and accounting of the rough diamonds imported for viewing and/or sale in such
form as prescribed by the jurisdictional Commissioner of Customs.
16. The jurisdictional Commissioner of
Customs shall issue consequential trade notices / standing orders immediately.
17. Any difficulties in implementation
of the procedure may be brought to the notice of the Board.
F. No: 451/13/2015 Cus V