DGFT Grants One-Time 30-Day Re-Import Extension for Diamond Exporters Amid West Asia Crisis

The global supply chain is highly susceptible to geopolitical shifts, and the gems and jewellery sector is no exception. Recognizing the severe logistical bottlenecks caused by the ongoing geopolitical instability in West Asia, the Directorate General of Foreign Trade (DGFT) has stepped in to provide crucial relief to the industry. Through the issuance of Notification No. 73/2025-26 on March 31, 2026, the Ministry of Commerce and Industry has officially amended the Foreign Trade Policy (FTP) 2023.

This strategic modification offers a one-time relaxation for eligible diamond exporters, effectively extending the zero-duty re-import window. By leveraging the powers vested under the Foreign Trade (Development & Regulation) Act, 1992, the government aims to shield the assessee from penal customs duties triggered by transit delays entirely beyond their control.

The foundation of this regulatory relief lies in the statutory powers granted to the Central Government.

Authority Under the FTDR Act

The amendment has been executed under the authority of Section 3 read in conjunction with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992. These specific provisions empower the Central Government to formulate, amend, and implement the export and import policy of the country. Furthermore, this action is harmonized with Paragraph 1.02 of the Foreign Trade Policy (FTP) 2023, which allows the administration to introduce transitional arrangements and relaxations in the public interest.

The Original Mandate of Paragraph 4.43

Before this amendment, Paragraph 4.43 of the Foreign Trade Policy (FTP) 2023 established a strict timeline for the re-import of exported diamonds. The policy dictated that an eligible assessee could export cut and polished diamonds to specific internationally recognized laboratories (as detailed in paragraph 4.73 of the Handbook of Procedures) for certification and grading.