What is Diamond Imprest Authorisation (DIA) Scheme?

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About Diamond Imprest Authorisation (DIA) Scheme:

It was introduced by the Department of Commerce, Government of India, to allow duty-free import of natural cut and polished diamonds for export purposes.
The Scheme will be implemented with effect from 01.04.2025.
Key Features of the Scheme:
- This scheme allows the duty-free import of Natural Cut and Polished Diamonds, of less than ¼ Carat (25 Cents).
- This scheme mandates export obligation with value addition of 10%.
- All diamond exporters holding Two Star Export House status and above and having US $15 million exports per year are eligible for availing the benefit under this scheme.
The scheme is made in response to the beneficiation policies undertaken in a number of natural diamond mining countries like Botswana, Namibia, Angola, etc, where diamond manufacturers are obliged to open cut and polishing facilities for a minimum percentage of value addition.
Support for MSME Exporters: Designed to create a level playing field for MSMEs, the scheme enables smaller exporters to compete effectively with larger industry players.
It is aimed towards retaining India’s position as a global leader in the entire value chain of the diamond industry.

Q1. What is a Diamond?

A diamond is a naturally occurring mineral composed of carbon atoms arranged in a crystal lattice structure known as a diamond cubic crystal system. This unique atomic arrangement makes diamonds the hardest known natural material, giving them exceptional physical properties such as extreme hardness, high thermal conductivity, and optical brilliance.

Source: TH