Bonded warehouses for diamonds import and re-export

Subject : Setting of Private/ Public bonded warehouses for import and re-export of cut & polished/coloured gem stones, rough diamonds etc.

I am directed to refer to the Notification No. 39/1997-2002 dt. 26th February, 1998¹ issued by the DGFT (copy enclosed for ready reference). The scheme under pare 8.13 of the EXIM Policy provides for setting up Private/ Public Bonded warehouses in EPZ/ DTA for import and re-expot of cut & polished diamonds, cut & polished coloured gemstones, import and re-export of rough diamonds, uncut & unset precious & semo-precious stones and DTA sales of rough diamonds, uncut & unset precious & semi- precious  stones against REP/GEM REP / Diamond Imprest LIcenses, subject to payment of duty wherever applicable.

2.  To operationalise the above scheme following procedure may be followed :

(i)  The scheme shall be applicable to jurisdiction of Commissioner of Customs, Mumbai, Jaipur, Delhi & Chennai. A Private / Public Warehouse may be set up in DTA/ EPZ subject to observance of Board’s existing instruction on setting up such warehouses where in the imported goods would be kept by the warehouse licence holder Physical control over the warehouse in the form of Double Lock System & posting of Cost Recovery Officer is waived.

(ii)  Clearance from the bounded warehouse may be taken by the REP or GEM REP or Diamond Imprest Licence holder as the case may be filing ex-bond Bill of Entry or Bill of Entry for home consumption. It can also be taken by an EOU or EPZ unit on filing ex-bond Bill of Entry. Such Bill of Entry would not be required to be referred to the licensing authority.

(iii) Although rough diamonds at present are chargeable to Nil rate of duty, for the purpose of regulatory control these will be deemed to be dutiable goods and the procedure for bonding or exbonding of dutiable goods will be followed in their case also.

(iv) The clearance from the bonded warehouse shall be taken by EOU/ EPZ under authorisation from the Asstt. Commissioner. The holders of REP or GEM REP or Diamond Imprest Licence can take the goods by following the procedures given under pare 8.24 & 8.25 of Handbook of Procedure. Details in this regard are to be given to the Assistant Commissioner by warehouse licence holder instead of licensing authority.

(v) The holders of diamond imprest licence while clearing the dutiable goods from the bonded warehouse shall execute a bond equal to the duty amount leviable on the goods exbonded. Such licence holders may be permited to maintain a running bond account with the Customs House so that he does not have to file separate bond for each Bill of Entry.

(vi) The warehouse licence holder shall be responsible for the safe keeping of the goods, for making physical delivery thereof to the users, as the case may be, against duty assessed Bills of Entry on which exbond clearance has been allowed by the proper officer, and for rendering to Customs a complete account of goods received and keptb, them in bond. In their capacity as bonders, they will also maintain the prescribed records, including name, address and other specified details of the users and quantity of the goods released to the user and exported by him.

(vii) The record regarding execution of bond by Diamond Imprest Licence holders as stated above shall be maintained by the Assistant Commissioner of Customs in the same way as is required to be maintained for exports of excisable goods under bond. However, on submission of proof of exports, the corresponding bond may be re-credited to the exporter’s account and may be allowed to be used for the subsequent exbond clearances. However, in the event of the exporter failing to produce proof of export on the expiry of the period prescribed in the EXIM Policy, the Assistant Commissioner may proceed to recover the amount of Customs duty leviable on the quantity of goods released to the exporter free of duty.

(viii) Separate Bond/Stock Account register in the form, Annexure-I and Stock Card in the form, Annexure-II is to be maintained by the each Licensee. The details are to filled on the date of transaction and the signatures of the Licensee/ authorised representative be appended after every transaction.

3. The abovesaid procedures may be brought into effect immediately, and the trade informed suitably. Proper steps may be taken for smooth transition from existing scheme to new scheme without dislocating the trade.

Proforma of Stock Account Book to be maintained by the licensee
of the private Bonded Warehouse

ISSUES

ANNEXURE – II

Proforma of Stock Card to be maintained by the licensee for each Stock

1. Bonder’s Name

2. Date of Warehousing

3. Bond register & page number

4. Description of goods