Foreign Cos like De Beers Allowed to Operate from Diamond Trade Zone, Amendment in Special Notified Zones (SNZ) Notified

[DGFT Notification No.42/2026-27 dated 09 October, 2026]

Effect of the Notification: Para 4.49 of FTP, 2023 relating to Special Notified Zones (SNZs) has been amended to enable eligible foreign entities as covered under Entry 13F of Schedule IV of the Income-tax Act, 2025, to undertake permitted activities.

Subject: Amendment to Para 4.49 of FTP-2023

S.O.(E): In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 1.02 of the Foreign Trade Policy, 2023 (as amended from time to time), the Central Government hereby amends Para 4.49 of FTP-2023, with immediate effect, as under:

Para No.

Existing Para

Revised Pa ra

4.49 of FTP

Special Notified Zone (SNZ)

Import, auction/sale and re-export of rough diamonds by entities, as notified vide RBI Notification 116 of 1st April, 2014, as amended from time to time, on consignment or outright basis, will be permitted in Special Notified Zone (SNZ) administered by the operator of SNZ, under supervision of Customs. The procedure of import, auction/ sale and re- export of rough diamonds (unsold) would be as specified by CBIC.

Import of rough diamonds and their auction, sale and re-export therefrom, as the case may be, by eligible foreign entities, on consignment or outright basis, will be permitted in Special Notified Zone (SNZ) administered by the operator of SNZ, under supervision of Customs.

Eligible foreign entities for the purposes of this paragraph shall include foreign companies engaged in the business of diamond mining, sightholders of such diamond mining companies, and brokers, aggregators or tender and auction entities connected with the sale of rough diamonds, as covered under Entry 13F of Schedule IV of the Income-tax Act, 2025, subject to conditions applicable thereunder.

The procedure of import, auction/sale and re-export of rough diamonds (unsold) shall be as specified by CBIC from time to time.

This issues with the approval of the Minister of Commerce & Industry.

(Issued from Fi le No. 01/94/1 80/067/AM27/PC-4)

Entry 13F of Schedule IV of the Income-tax Act, 2025

Sl. No.

Income not to be included in total income

Eligible persons

Conditions

13F.

Any income on sale of rough diamonds.

A foreign company—

(a) engaged in the business of diamond mining; or

(b) being a sightholder of the company referred to in clause (a); or

(a) The sale of rough diamonds is carried out in any notified special zone as referred to in section 9(9)(c)(ii)(C);

(b) such foreign company maintains and furnishes such information in such form and manner, as may be prescribed; and