India is one of the largest diamond processing and trading hubs in the world. Cities like Surat, Mumbai, and Jaipur have earned global recognition for their expertise in cutting, polishing, and re-exporting precious stones. If you are a trader, jeweller, or business owner looking to import diamonds in India, understanding the regulatory framework is essential before placing your first international order.
The diamond import procedure involves multiple regulatory bodies, from the Directorate General of Foreign Trade (DGFT) to the Gem and Jewellery Export Promotion Council (GJEPC). Whether you plan to bring in rough stones for processing or source cut polished diamonds for retail, each category carries its own set of compliance obligations. This guide walks you through every step, so you can navigate the process with confidence and stay fully compliant.
Who Can Import Diamonds in India
Not every individual or entity can directly import diamonds in India. The Foreign Trade Policy lays out specific eligibility criteria that must be satisfied before a business can engage in gem import India activities. Here is a look at the key requirements.
Any business entity registered in India, whether a proprietorship, partnership firm, LLP, or private limited company, can apply for the necessary licences and registrations. The importer must hold a valid Permanent Account Number (PAN) and an active bank account in the name of the business. Foreign nationals and Non-Resident Indians (NRIs) may also participate, provided they operate through a legally registered Indian entity and comply with Foreign Direct Investment (FDI) regulations.
It is important to note that importing rough diamonds requires mandatory membership with the GJEPC, as per DGFT Notification No. 43/2015-2020 dated November 22, 2021. For cut polished diamonds import, GJEPC membership is strongly recommended, even if not always compulsory, because it opens access to trade benefits and smoother customs clearance. If you are setting up a new business entity specifically for this purpose, you may want to explore options such as private limited company registration or LLP incorporation to ensure the right legal structure for your operations.
Licences and Registrations Required for Diamond Import
Before you can import diamonds in India, several registrations must be in place. Missing even one can delay your shipment at the port or result in penalties. Here is a breakdown of the core registrations.
The IEC registration is the foundation of the entire diamond import procedure. It is a 10-digit code issued by DGFT, and without it, customs authorities will not release your consignment. The application is submitted online through the DGFT portal, and the certificate is typically issued within a few working days.
You will also need an active GST registration to handle the Integrated GST (IGST) payable at the time of customs clearance. A valid GSTIN allows you to claim Input Tax Credit on the IGST paid, which directly reduces your overall tax burden.
Step-by-Step Diamond Import Procedure in India
Once your registrations are in order, you can begin the actual process of sourcing and importing diamonds. The diamond import procedure in India follows a structured path that ensures regulatory compliance at every stage.
Step 1: Obtain IEC and GJEPC Membership
Apply for IEC through the DGFT portal by submitting your PAN, business address proof, bank details, and Digital Signature Certificate (DSC). Simultaneously, apply for GJEPC membership by visiting the council's portal, submitting your business registration documents, and paying the applicable membership fee. GJEPC membership is compulsory for importing rough diamonds and highly beneficial for cut polished diamonds import.
Step 2: Identify Your Supplier and Negotiate Terms
Source your diamonds from an international supplier in countries like Belgium, Israel, Botswana, Russia, or the UAE. Negotiate commercial terms including Incoterms (CIF, FOB), payment terms, and delivery timelines. Ensure the supplier can provide a valid Kimberley Process Certificate for rough diamond shipments.
Step 3: Obtain the Kimberley Process Certificate
For rough diamonds, the exporting country's designated authority issues a Kimberley Process Certificate. This certificate must accompany the shipment in a tamper-resistant container. The certificate number should be marked on the container. On arrival, the importer must submit the KPC and supporting documents to GJEPC for verification before customs clearance.
Step 4: Arrange Shipping and Insurance
Diamond shipments are high-value consignments and require specialised logistics. Use approved couriers, cargo services, or airlines that handle precious cargo. Arrange comprehensive marine or air insurance covering theft, damage, and transit risks. Most importers prefer CIF terms so the supplier handles freight and insurance up to the Indian port.
Step 5: File the Bill of Entry and Clear Customs
Upon arrival at the designated port or airport, file a Bill of Entry through the ICEGATE portal. Attach all trade documents, including the commercial invoice, packing list, airway bill, KPC (for rough diamonds), and insurance certificate. Customs officers will physically verify the consignment and assess applicable duties before releasing the goods.
Step 6: Pay Customs Duty and IGST
Pay the assessed Basic Customs Duty (BCD), Social Welfare Surcharge, and IGST at the applicable rates. Once payment is confirmed, customs will release the consignment. Retain all duty payment receipts for accounting and Input Tax Credit purposes.
Step 7: Take Delivery and Maintain Records
After clearance, take delivery of the diamonds and update your inventory records. Maintain detailed documentation of every transaction, as it is essential for GST return filing, customs audits, and any future re-export obligations.
Customs Duty and GST Applicable on Diamond Imports
Understanding the tax structure is critical for anyone looking to import diamonds in India. The applicable duties and taxes vary depending on the type of diamond being imported.
The exact BCD rate depends on the HS Code classification. Rough diamonds typically fall under HSN 7102, while cut polished diamonds import falls under sub-headings like 71023910. A Social Welfare Surcharge of 10% on BCD is also applicable.
One significant advantage for importers is the Input Tax Credit mechanism. The IGST paid at the time of customs clearance can be claimed as credit against your output GST liability, provided you hold a valid GSTIN and file your returns on time. This makes gem import India a tax-efficient operation when managed correctly.
As of September 2025, the IGST on natural cut and polished diamonds up to 0.25 carats imported under the Diamond Imprest Authorisation Scheme has been reduced to nil, offering additional cost relief for eligible importers. Always verify the latest duty rates from the CBIC website or consult with a qualified professional before placing your order.
Understanding the Kimberley Process Certification Scheme
The Kimberley Process Certification Scheme (KPCS) is an international mechanism established to prevent the flow of conflict diamonds into legitimate trade channels. India was one of the founding participants when KPCS came into effect on January 1, 2003, and the country has consistently maintained compliance through rigorous oversight.
In India, the GJEPC serves as the designated Kimberley Process Import and Export Authority. Every shipment of rough diamonds entering the country must be accompanied by a valid KPC issued by the exporting country's authority. Upon arrival, the importer submits the certificate along with supporting trade documents to GJEPC for verification. Once endorsed, the importer can present the certified documents to customs for clearance.
The KPC contains details such as the origin of the diamonds, carat weight, value in US dollars, and the exporter's information. The certificate is valid for one year from the date of issue. It is worth noting that while the Kimberley Process applies specifically to rough diamonds, importers of cut polished diamonds should still maintain thorough sourcing records to demonstrate ethical procurement practices.
If your business involves FDI or foreign collaboration in the diamond trade, ensure you also comply with FDI compliance requirements under the Foreign Exchange Management Act (FEMA).
Key Documents Required for Diamond Import
Proper documentation is the backbone of a successful diamond import procedure. Missing or incorrect paperwork can lead to shipment delays, additional inspections, or even confiscation. The following documents are typically required for importing diamonds into India.
These include your IEC certificate, GJEPC membership certificate, commercial invoice from the overseas supplier, packing list detailing carat weight and value, airway bill or bill of lading, Kimberley Process Certificate (for rough diamonds), insurance certificate, bill of entry filed through ICEGATE, and proof of payment for customs duty and IGST. Additionally, if your diamonds fall under specific HS codes requiring a grading certificate from an accredited gemological laboratory, ensure that is arranged before the shipment leaves the supplier's country.
It is advisable to work with an experienced customs broker who specialises in precious cargo. They can ensure your documentation is in order, assist with HS code classification, and expedite the clearance process. For businesses that need help with the foundational registrations, Patron Accounting offers end-to-end support for IEC registration, GST registration, and company incorporation to get your import business off the ground.
