Executive Summary

On September 28, 2026, the CBIC issued a formal notification establishing a Special Notified Zone (SNZ) at the Surat Diatrade Centre within the Surat Diamond Bourse. This regulatory measure permits international mining conglomerates to display rough diamonds for direct viewing and auction to Indian diamantaires without triggering immediate import duty or complex local tax assessments, streamlining global gems trade workflows.

Background

India processes roughly 90% of the world's rough diamonds, yet domestic manufacturers historically traveled to global hubs like Antwerp, Dubai, or Tel Aviv to inspect and procure rough stones. While an SNZ was established in Mumbai (Bharat Diamond Bourse), the launch of the Surat Diamond Bourse required a dedicated regulatory zone in Surat to minimize operational overhead and encourage direct rough diamond imports into Gujarat's manufacturing heartland.

What Has Changed

Particulars Earlier Status Revised Status (Notification 28 Sep 2026)

Surat Diamond Viewing Operations Subject to standard customs territory rules Designated as a Special Notified Zone (SNZ)

Rough Diamond Consignment Displays Required formal customs clearance and duty bonding Permitted for duty-free display, viewing, and bidding within the zone

Key Provisions

• Zone Boundaries: Demarcates specific secure infrastructure within the Surat Diatrade Centre as a bonded, access-controlled customs enclosure.

• Permitted Activities: International mining firms may display rough diamonds for inspection, grading, and auctioning to authorized Indian bidders.

• Tax Neutrality on Unsold Goods: Rough stones imported for display that remain unsold can be re-exported without incurring customs duties or complex tax compliance.

• Clearance on Sale: Only lots purchased by domestic buyers are cleared into the domestic tariff area (DTA) through standard customs import filings.

Applicability

• Covered Entities: International diamond mining companies, rough diamond traders, diamond cutting and polishing houses, and customs intermediaries operating at the Surat Diamond Bourse.

Practical Implications

• Working Capital & Trade Costs: Eliminates overseas procurement travel and third-country brokerage mark-ups for Indian diamond manufacturers.

• Compliance Administration: Operations within the SNZ require strict inventory reconciliation against customs custody manifests.

• Regional Economic Impact: Solidifies Surat’s position as a self-sufficient global diamond trading and manufacturing hub.

What Should We Do

• Diamond manufacturing entities should register with the Surat Diatrade Centre customs authority to secure buyer viewing credentials.

• Establish internal standard operating procedures for tracking purchases originating from the SNZ into DTA units.

• Ensure accounting and ERP entries accurately record customs clearances, valuation certificates, and Kimberley Process certifications.

KGS Perspective

The establishment of sector-specific customs enclosures enhances supply chain competitiveness. Trade participants must maintain rigorous documentation and physical stock reconciliation controls to remain fully compliant within Special Notified Zones.

Conclusion

The notification of the Surat Diatrade Centre SNZ on September 28, 2026, marks an important milestone for India’s gems and jewelry sector, directly linking global rough diamond sources with domestic cutting hubs.

Source / Regulatory Reference

• Regulator: Central Board of Indirect Taxes and Customs (CBIC)

• Notification / Circular / Regulatory Reference: CBIC Notification on Special Notified Zone at Surat Diatrade Centre [Dated 28 September 2026]

• Official Document Link: https://www.cbic.gov.in