Diamond Imprest Authorisation (DIA) Scheme

23.01.2025

Diamond Imprest Authorisation (DIA) Scheme

Why in the news?   

The Commerce Ministry recently introduced the Diamond Imprest Authorization (DIA) Scheme, aiming to enhance the global competitiveness of India’s diamond industry.

About Diamond Imprest Authorisation (DIA) Scheme:

• It has been introduced by the Department of Commerce, Government of India to allow duty-free import of natural cut and polished diamonds, of less than ¼ Carat (25 Cents), for export purposes.
• The Scheme will be implemented with effect from 01.04.2025.

Key Features of the Scheme:

• • This scheme mandates export obligation with value addition of 10%.
  • All diamond exporters holding Two Star Export House status and above and having US $15 million exports per year are eligible for availing the benefit under this scheme.
• The scheme has been made in response to the beneficiation policies undertaken in a number of natural diamond mining countries like Botswana, Namibia, Angola, etc, where diamond manufacturers are obliged to open cut and polishing facilities for a minimum percentage of value addition.
• Support for MSME Exporters: Designed to create a level playing field for MSMEs, the scheme enables smaller exporters to compete effectively with larger industry players.
• It is aimed towards retaining India’s position as a global leader in the entire value chain of the diamond industry.

                                                                  Source: The Hindu

Consider the following statements regarding the Diamond Imprest Authorisation (DIA) Scheme, recently seen in the news:

Statement-I:It was introduced by the Department of Commerce to allow duty-free import of natural cut and polished diamonds for export purposes.

Statement-II:All diamond exporters are eligible for availing the benefit under this scheme.

Which one of the following is correct in respect of the above statements?

A.Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I.

B.Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-I.

C.Statement-I is correct, but Statement-II is incorrect.

D.Statement-I is incorrect, but Statement-II is correct.

Answer C