Subsequently, on March 5, the government's revenue department issued clarification on this issue, which will be in force till March 31, 2001. ``We have started clearing the rough diamond parcels from March 9, after the exporters furnished necessary documents'' said Mr Yuvraj Gupta, commissioner of customs.

Before the import duty was levied (on February 28), there were some 350-plus parcels of imported rough diamonds waiting for clearance. After the March 5th notification, some 62 importers have submitted necessary documents and of these, the customs department has cleared 21 consignments/parcels (imported under replenishment licences), leaving less than 300 parcels with the MMTC (acting as the custodian of the rough diamond imports) and the customs department to be lifted by the jewellery exporting community. ``The balance would be lifted in due course''.

The Gems and Jewellery Export Promotion Council (GJEPC), according to the customs department, has been exaggerating the overall value of the parcels lying with both the customs and the MMTC because of the confusion. A top source said: ``The value of imported rough diamonds lying with the customs department and the MMTC would be around Rs 250-300 crore and not Rs 800 crore as has been mentioned in the media. Also, it is not that we don't want to clear these parcels. It is the exporters who do not want to meet the duty exemption requirements, outlined in the notification issued on March 5. They are free to lift the parcels after submitting the necessary documents and undertakings''. Till February 28, 2001 import of rough diamonds was almost duty free, albeit through the three modes of licences - imprest, bulk and replenishment which call for meeting export obligations to claim duty exemption.

Customs officials maintain there is simply no confusion. ``The March 5 clarificatory notificiation issued by the government's revenue department clarifies everything and the importers need to meet the duty exemption requirements.

Mr Gupta said: ``The problem is the rough diamond importers do not want to furnish any sort of undertaking to meet the requirements and make their dealings transparent in the duty exemption licences, as required under the notification. Importers have to meet these requirements. We in customs do not have any authority to waive these requirements''.

According to the March 5 notification, the jewellery exporters importing rough diamonds (through various licences) and seeking five per cent duty exemption), `need to execute a bond in such a form and for such a sum as may be specified by the deputy commissioiner of customs and also furnish a bank guarantee for a sum equivalent to the duty leviable on the said rough diamonds so imported, undertaking himself to achieve the export obligation as stipulated in the Exim policy and handbook of procedures'.

Interestingly, the latest clarificatory notification is valid upto March 31, 2001, whereafter the provisions of the new Exim policy would be applicable.