Duty-free re-import of graded small diamonds allowed.

New Delhi: Accepting a major demand of domestic industry, the government on Wednesday allowed export of small sized cut and polished diamonds for certification and re-import it duty free.

"Cut and polished diamonds of 0.10 carat or above can be exported and thereafter re-imported duty free after certification by authorised laboratories," Directorate General of Foreign Trade (DGFT) said in a notification.

Earlier this was allowed for diamonds of size 0.25 carat and above only, it said.

Welcoming the step, Gems and Jewellery Export Promotion Council Chairman Vipul Shah said that the step will help in boosting exports of small sized diamonds.

He said that this was our major demand to allow export of cut and polished diamonds of 0.10 carat for grading and certification and than re-import it duty free.

"International players like watch industry always ask for certified small sized diamonds and it was not allowed earlier. Now Indian small sized diamonds will get space in the international market," he added.

According to estimates, India's cut and polished diamonds export during April 2012 and February 2013 declined by 29 percent over the same period last year.

India's main export markets for the cut and polished diamonds were Hong Kong, the US, UAE, Israel and Belgium.

Source : zeenews.india.com