Summary: The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has issued Notification No. 42/2026-27-DGFT dated 9 October 2026, amending Paragraph 4.49 of the Foreign Trade Policy (FTP), 2023, concerning the import, auction, sale and re-export of rough diamonds in Special Notified Zones (SNZs). The amendment takes effect immediately.
The notification has been issued under Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with Paragraph 1.02 of FTP 2023. It revises the eligibility framework for foreign entities undertaking rough diamond transactions within SNZs administered by designated operators under Customs supervision.
Under the revised provision, eligible foreign entities may import rough diamonds and conduct their auction, sale and re-export, as applicable, on a consignment or outright basis. The eligible entities include foreign companies engaged in diamond mining, sightholders of such mining companies, and brokers, aggregators, tender entities or auction entities connected with rough diamond sales.
Eligibility is linked to Entry 13F of Schedule IV of the Income-tax Act, 2025, subject to the applicable conditions. The amendment therefore identifies the categories of foreign entities permitted to participate in the specified activities within SNZs.
The procedure for importing, auctioning, selling and re-exporting unsold rough diamonds will continue to be governed by the Central Board of Indirect Taxes and Customs (CBIC), as specified from time to time.
The notification has been issued with the approval of the Minister of Commerce and Industry and is effective from 9 October 2026.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 42/2026-27-DGFT | Dated: 09 October, 2026
Subject: Amendment to Para 4.49 of FTP-2023-reg
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 Para |
|---|---|---|
| 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. |
Effect of the Notification: Para 4.49 of FTC, 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.
This issues with the approval of the Minister of Commerce & Industry.
(Lay Agarwal)
Director General of Foreign Trade &
Ex officio Addl. Secretary to the Government of India
e-mail: dgil(enic.in
(Issued from File No. 01/94/180/067/AM27/PC-4)
