Setting up of Private Bonded Warehouse for Diamonds and Gemstones – Scheme Withdrawn from FTP 2009-14

[CBEC Circular No. 31 dated 24^th November 2009]

Sub: Setting up Private/Public bonded warehouse for diamonds and gemstones for import and re-export therefrom.

Attention is invited to erstwhile scheme for setting up private/public bonded warehouse in SEZ/DTA for import and re-exports of cut & polished diamonds, cut & polished colored gems stones, uncut & unset precious & semi precious gemstones, subject to achievement of minimum value addition of 5% under paragraph 4A.18 of the Foreign Trade Policy 2004-09. This scheme has now been deleted from the Foreign Trade Policy 2009-14 announced on 27.08.2009 by DGFT.

2. The erstwhile scheme (para 4A.18 of FTP 2004-09) was in operation vide Board’s circular No. 28/98-Cus dated 24.04.1998 and clarification issued vide circular No. 47/99-Cus dated 27.07.1999.

3. In view of withdrawal of the scheme for setting up private/public bonded warehouse for diamonds and gemstones from Foreign Trade Policy 2009-14, no new private/public bonded warehouse license can be allowed for bonding of diamonds and gemstones for import and export thereform. Further, such a facility can also not be allowed for non-dutiable goods in term of section 57 of the Customs Act, 1962.

4. Accordingly, the circular No. 28/98-Cus dated 24.04.1998 stands withdrawn to the above extent.

5. As a transitory arrangement for the existing warehouses to surrender the bonding license, a period of three months is granted from the date of issue of this circular. For this three months period, diamonds and gemstones may be deemed as dutiable goods for the purpose of regulatory control and the procedure of ex-bonding of dutiable goods shall be followed. However, bonding of these goods shall not be allowed in the existing warehouses.

6. Wide publicity may please be given to these instructions by way of issuance of Public/Trade Notice. Suitable Standing orders/instruction may be issued for guidance of the field officers. Difficulties, if any, in implementation of these instructions, may be brought to the notice of the Directorate General of Export Promotion.

7. This issues with the approval of Central Board of Excise & Customs.

[F.No.: DGEP/G&J/490/2006]