What changed
Previously, non-status holder importers could receive import bills directly from overseas suppliers only if the value was up to USD 100,000. Now, for rough diamond imports, this limit has been raised to USD 300,000. Status holder exporters continue to have no value limit.
What it means for you
This sector-specific relaxation lowers compliance burden and transaction costs for smaller diamond importers. AD Category-I banks must apply enhanced due diligence, including KYC and overseas supplier credit checks, before allowing remittances under this facility.
What you must do
- Update internal guidelines to allow remittances up to USD 300,000 for rough diamond imports under direct receipt of bills.
- Ensure KYC and due diligence on importer customers, including financial standing and track record.
- Obtain a credit report on each overseas supplier from their banker or a reputed credit agency before approving transactions.
- Verify that imports comply with prevailing Foreign Trade Policy and that transactions are bonafide.
Who it affects
AD Category-I banks handling import remittances, Non-status holder importers of rough diamonds, Gems and Jewellery Export Promotion Council (GJEPC) members
Does this relaxation apply to all imports or only rough diamonds?
It applies only to imports of rough diamonds by non-status holder importers. For other imports, the earlier USD 100,000 limit remains unchanged.
What due diligence must banks perform before allowing such remittances?
Banks must conduct KYC, assess the importer's financial standing and track record, and obtain a credit report on each overseas supplier from their banker or a reputed credit agency.
Are status holder exporters still exempt from value limits?
Yes, status holder exporters as defined under Foreign Trade Policy continue to have no value limit for direct receipt of import bills/documents.