DGFT Reintroduces Facility for Setting up of Pvt/Public Bonded Warehouses in SEZ/DTA for Diamonds, Gems and Precious Stones Following Return of Duty Regime

[DGFT Notification No. 30 dated 31^st January 2013]

Subject: Introduction of provision for setting up of Private/Public Bonded Warehouses for Gems and Jewellery sector in FTP(RE-2012)(2009-2014).

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, as amended, read with paragraph 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government hereby amends with immediate effect Foreign Trade Policy, 2009-2014 (RE 2012) and introduces a new para 4A.16A for setting up of Private/Public Bonded Warehouses for Gems and Jewellery sector.

2. A new para 4A.16A after para 4A.16 is being added in FTP as under:

Private/Public Bonded Warehouse – Private/Public Bonded Warehouses may be set up in SEZ/DTA for import and re-export of cut and Polished diamonds, cut and polished coloured gemstones, uncut & unset precious & semi-precious stones, subject to achievement of minimum VA of 5%

3. Effect of this amendment

This will facilitate setting up of Private/Public Bonded Warehouses in SEZ/DTA for Diamond , Gems and precious/semi precious stones.

[Similar provision had existed in the Foreign Trade Policy earlier, but got withdrawn with the import duty being reduced to zero. It is being reintroduced now.]