CBEC Bans Import, Export Of Non-certified Rough Diamonds

New Delhi, June 26: | Updated: Jun 27 2003, 05:30am hrs
In a bid to prevent money international laundering, Central Board of Excise and Customs (CBEC) has banned import and export of rough diamonds unless the shipment parcel is accompanied by a Kimberley Process (KP) certificate.

In a circular issued by the CBEC on Monday, the board clarified in case a rough diamond consignment is not accompanied by a KP certificate, the importer in India will be given seven working days to arrange for the original KP certificate for clearance of the consignment. If the importer is not able to submit the original KP certificate within the stipulated period, the goods would be sent back to the exporting authority of the country of origin.

The KP certification has also been made mandatory for clearance of export and import of rough diamonds in by units located under EOU/SEZ schemes. The KP certification scheme for rough diamonds was adopted at a ministerial meeting held at Interlaken, Switzerland in November last year. India is a signatory to the Interlaken declaration. The scheme was evolved to deal with money laundering associated with trade of rough diamonds. The restrictions were imposed by the UN Security Council.

KP certificate, it may be mentioned, is a forgery restant document with a particular format which identifies a shipment of rough diamonds as being in compliance with the requirements of the certification scheme. The KP certificate Kimberley process certificate, country of origin, the certificate number, date of issuance, date of expiry, issuing authority, the details of importer and exporter, carat weight/mass, value in dollars, number of parcels in shipment, relevant HS code and valuation certificate by the exporting authority.

The commerce and industry ministry had designated Gem and Jewellery Export Promotion Council as the importing and exporting authority for the purpose of KP certification scheme.

The CBEC circular has also clarified that in case of import of rough diamonds through personal baggage, the standard procedure will apply mutatis mutandis provided the rough diamonds have been declared to the customs authorities at the port of departure as well as port of arrival and other documents such as invoice, payment receipts etc. are produced to the customs at the airport on arrival by the passenger.