4A.17
- Document type
- Policy
- Reference no.
- 00
- Dated
Diamond & Jewellery Dollar Accounts
Diamond & Jewellery Dollar Accounts
4A.17
Firms and companies dealing in purchase/ sale of rough or cut and polished diamonds/precious metal jewellery plain, minakari and / or studded with / without diamond and/or other stones, with a track record of at least two years in import or export of diamonds / coloured gemstones/ diamond and coloured gemstones studded jewellery / plain gold jewellery, and having an average annual turnover of Rs. 3 crores or above during preceding three licensing years, may also carry out their business through designated Diamond Dollar Accounts (DDA).
Dollars in such accounts available from bank finance and / or export proceeds shall be used only for:
(i) Import / purchase of rough diamonds from overseas/ local sources;
(ii) Purchase of cut and polished diamonds, coloured gemstones and plain gold jewellery from local sources;
(iii) Import / purchase of gold from overseas / nominated agencies and repayment of dollar loans from the bank; and
(iv) Transfer to Rupee Account of exporter. Details of this DDA Scheme are given in HBP v1.
A non DDA holder is also permitted to supply cut and polished diamonds to DDA holder, receive payment in dollars and convert same into Rupees within 7 days. Cut and polished diamonds and coloured gemstones so supplied by non-DDA holder will also be counted towards discharge of his export obligation and / or entitle him to replenishment Authorisation.