Figure 1: Jewelry artisan inspects a high-value piece in a modern Indian workshop. [AI Generated]
What changed
Effective 1 April 2026, the Ministry of Commerce and Industry and the Central Board of Indirect Taxes and Customs (CBIC) officially removed the ₹10 lakh per-consignment value cap on commercial exports sent via courier (Commerce Ministry Year End Review). This landmark trade facilitation measure allows gems and jewellery businesses to ship high-value consignments directly to international customers through secure express channels. Additionally, the Directorate General of Foreign Trade (DGFT) reintroduced the Diamond Imprest Authorization (DIA) scheme for natural diamonds (effective 1 April 2025) and slashed the basic customs duty on Lab-Grown Diamond (LGD) seeds from 5% to 0% (DGFT Portal).
Who this affects
This major regulatory update impacts MSME jewellery manufacturers, e-commerce direct-to-consumer (D2C) exporters, and advanced industrial diamond synthesis startups:
E-commerce Jewellers: Small and micro-exporters who previously had to split high-value shipments or navigate complex cargo clearances can now ship packages worth more than ₹10 lakh via courier. Natural Diamond Exporters: Exporters holding "Two Star Export House" status or above, with a minimum export turnover of US$ 15 million in cut and polished diamonds annually for the past three financial years, can access duty-free imports under the DIA scheme (DGFT Portal). Lab-Grown Diamond Founders:* Technology startups utilizing Chemical Vapor Deposition (CVD) or High Pressure High Temperature (HPHT) synthesis to manufacture synthetic diamonds indigenously.
The details
The policy changes introduce different paths of fiscal support and facilitation for natural versus synthetic gems and jewellery:
Figure 2: Update on Gems and Jewellery Export Policy & Courier Value Cap Removal funding, eligibility, and process milestone roadmap. [AI Generated]
Natural vs. Lab-Grown Diamond (LGD) Policy Support
| Policy Component | Natural Diamonds (DIA Scheme) | Lab-Grown Diamonds (LGD) Support | Source |
|---|---|---|---|
| Basic Customs Duty | Subject to standard import tariffs | Reduced from 5% to 0% (Nil) on import seeds | GJEPC |
| R&D Grant Support | Not applicable | ₹242.96 Crore over 5 years to IIT Madras | Commerce Ministry Year End Review |
| Import Eligibility | Restricted to Two Star Export Houses (≥$15M exports) | Open to all domestic manufacturing units | DGFT Portal |
| Export Obligation | Fulfill minimum 10% value addition | Standard foreign trade rules apply | DGFT Portal |
Gems & Jewellery Policy Key Statistics (As of 2026)
| Metric / Program Component | Current Policy Metric / Status | Supporting Policy Document |
|---|---|---|
| LGD Seed Import Tariff | 0% (Nil) | Circular No. 17/2026-Customs |
| InCent-LGD Hub Funding | ₹242.96 Crore total outlay (IIT Madras) | Union Budget 2023-24 Announcement |
| DIA Import Size Cap | Natural diamonds weighing up to 4 carats (25 cents) | Foreign Trade Policy (FTP) 2023 |
| Courier Export Cap | Abolished (Previous limit was ₹10 lakh per consignment) | CBIC Notification No. 08/2026-Customs |
| DIA Min Export Performance | US$ 15 million annually for the past 3 FYs | DGFT Policy Circular / FTP 2023 |
What to do about it
If you are an exporter or startup in the gems and jewellery sector:
- Transition to Courier Export Channels: For e-commerce shipments, consult with your logistics providers (such as DHL or FedEx) to migrate high-value shipments (>₹10 lakh) from air cargo to courier customs clearance, utilizing the new CBIC guidelines under Circular No. 17/2026-Customs.
- Apply for Diamond Imprest Authorization (DIA): If you meet the $15 million export threshold, log in to the DGFT Portal, navigate to the Services tab, and submit your application in the ANF-4J format to secure duty-free natural diamond imports.
- Source Concessional LGD Seeds: LGD manufacturers should adjust their import documentation to declare LGD seeds under the updated HS codes to claim the 0% concessional basic customs duty rate (GJEPC).
What is still unclear
While these measures substantially reduce regulatory friction, several policy gaps remain:
E-Commerce Re-Imports: Although the government established a Return to Origin (RTO) framework for unclaimed e-commerce exports, CBIC has currently excluded gems and jewellery from the simplified, risk-based re-import return checks ([GJEPC](https://gjepc.org)). Exporters must still follow standard, complex re-import audit pathways for returns. DIA Traceability Audits: MeitY and the Commerce Ministry have not yet finalized the operational auditing guidelines to prevent the physical mixing of raw natural diamonds imported duty-free under the DIA scheme with lab-grown stones during processing.