India Extends Deadline for Duty-Free Reimports

RAPAPORT... The Indian government has granted diamond companies extra time to ship polished goods back to the country after grading without incurring customs duty.At present, reimports are subject to the 7.5% levy once the diamonds have been outside India for three months. The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadline by a further three months for all parcels for which the cutoff date was previously between February 1 and July 31, it said Friday.The country's Gem & Jewellery Export Promotion Council (GJEPC) had been lobbying for the change after the Covid-19 pandemic delayed the return of goods companies had sent overseas for certification and other services."The latest notification on the extension of three months on reimport of certified diamonds is a great respite for our exporters," said GJEPC chairman Colin Shah.Last week, the council urged the government to reduce customs duty on polished to 2.5%, arguing that the move would boost India's status as a hub for trading and distribution of diamonds.Image: Polished diamonds. (Shutterstock)