Subject:- Diamond Credit Pass Book Scheme-issue of Notification No. 79/96-Cus. dated 8.10.96.
I am directed to say that a scheme has been framed by the Government for import of rough diamonds and export of cut & polished diamonds in terms of Para 79 A of the exim policy. Appendix-I of the policy provides for import of special industrial adhesives etc. to facilitate the export of cut & polished diamonds. Accordingly Notification No. 79/96-Cus. dated 8.10.96 has been issued providing for exemption from duty on special industrial adhesives, gums and solutions and synthetic diamond powder upto 1% of the Free on Board (FOB) value of the export of cut and polished diamond, when imported into India by the exporters of cut and polished diamonds operating under “Diamond credit book Scheme” notified by the Govt. of India, Ministry of Commerce, vide notification No. 12 (RE-95)/92-97 dated the 1st Dece., 1995 from (i) the whole of the duty of customs leviable thereon, which is specified in the first schedule to the customs Tariff Act 1975 (51 of 1975); (ii) the whole of the special duty of customs leviable thereon under clause 66 of the Finance Act, 1996 (iii) the whole of the additional duty leviable thereon under section 3 of the said customs Tariff Act. DGFT is separately notifying the proforma of the new pass book for this purpose.
2. The above may be brought to the notice of all concerned/ Trade by issue of a suitable Public Notice.