In a recent circular, the Central Board of Indirect Taxes & Customs, under the Ministry of Finance, Department of Revenue, Government of India, announced an important amendment regarding the inclusion of Surat in the scheme for setting up Private/Public Bonded Warehouses. This scheme is specifically designed for the import and re-export of cut and polished diamonds, cut & polished colored gemstones, uncut & unset precious & semi-precious stones. The circular, numbered as Circular No. 25/2023-Customs and dated 25th October, 2023, expands the geographical jurisdiction of this scheme. This article provides a detailed analysis of this development and its implications.
1. Background: The circular refers to Circular No. 11/2013-Customs dated 06.03.2013, which laid out the procedures for operationalizing the scheme under Para 4A.16A of FTP 2009-2014 (Para 4.48 of FTP 2023). The scheme aimed to facilitate the establishment of Private/Public Bonded Warehouses in Special Economic Zones (SEZ) and Domestic Tariff Area (DTA). These warehouses are intended for the import and re-export of valuable gems and stones, provided a minimum value addition (VA) of 5% is achieved.
2. Existing Jurisdictions: As per the previous circular, the scheme was applicable to four jurisdictions:
- Commissioner of Customs (CSI Airport, Mumbai)
- Jodhpur (Hq at Jaipur)
- Air Cargo Export, Delhi
- Airport & Air Cargo, Chennai
3. Trade Representation: The trading community represented the need to expand the scope of the scheme by including Surat in the list of eligible jurisdictions. This representation was the impetus behind the amendment.
4. Inclusion of Surat: Following a thorough examination, the Central Board of Indirect Taxes & Customs decided to include Surat, under the jurisdiction of the Commissioner of Customs, Ahmedabad, as the fifth jurisdiction in the scheme. This expansion allows Surat to benefit from the provisions of Circular No. 11/2013-Customs.
5. Future Implications: The inclusion of Surat is significant for the gem and stone trade, especially for the city’s renowned diamond industry. It simplifies the import and re-export processes and aligns with the government’s ease of doing business initiatives.
6. Conclusion : The amendment to Circular No. 11/2013-Customs to include Surat in the scheme for Private/Public Bonded Warehouses is a positive step toward fostering trade in valuable gems and stones. The inclusion of Surat, a major hub for the diamond and gemstone industry, aligns with the government’s efforts to promote ease of doing business and encourages the growth of this sector. This development is expected to streamline import and re-export processes, benefitting traders and the industry as a whole. It represents a proactive approach by the Central Board of Indirect Taxes & Customs in responding to the needs and representations of the trading community.
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F.NO. DGEP/GnJ/5/2023-TECH
Government of India
Ministry of Finance, Department of Revenue
(Central Board of Indirect Taxes & Customs)
Circular No. 25/2023 – Customs | Dated: 25th October, 2023
8th Floor, Tower-2, Jeevan Bharti Building,
Connaught Place, New Delhi — 110001
To
Pr Chief Commissioners/ Chief Commissioners of Customs;
Pr Directors General/ Directors General;
Pr Commissioners/ Commissioners of Customs;
Pr Additional Directors General/ Additional Directors General.
Madam/ Sir,
Subject: – Amendment in Circular No. 11/2013-Customs dated 06.03.2013 for inclusion of Surat, under jurisdiction of Commissioner of Customs, Ahmedabad — reg.
Reference is invited to Circular No. 11/2013-Customs dated 06.03.2013 prescribing the procedure to operationalise the scheme under Para 4A.16A of FTP 2009-2014 (Para 4.48 of FTP 2023) for setting up of Private/ Public Bonded Warehouses in SEZ/ DTA for import and re-export of cut and polished diamonds, cut & polished coloured gemstones, uncut & unset precious & semi-precious stones, subject to achievement of minimum value addition (VA) of 5%. Through this circular, the scheme is currently applicable to the jurisdiction of the Commissioner of Customs (a) CSI Airport, Mumbai, (b) Jodhpur (Hq at Jaipur), (c) Air Cargo Export, Delhi, and (d) Airport & Air Cargo, Chennai.
2. Trade has represented that Circular No. 11/2013-Customs dated 06.03.2013may be amended to include Surat for availing the said scheme.
3. In view of the above, after examination, the Board has decided to include Surat, under the Jurisdiction of Commissioner of Customs, Ahmedabad as a fifth jurisdiction in Circular No. 11/2013-Customs dated 06.03.2013 besides the four jurisdictions mentioned above.
4. The Hindi version of this Circular will follow.
Yours faithfully,
(Ranjan Khanna)
Additional Director General
