CBIC Approves New Special Notified Zone at Surat Diamond Bourse for Rough Diamond Trade

India's rough diamond trade gets a new home. The CBIC has approved a Special Notified Zone (SNZ) at the Surat Diamond Bourse, bringing the viewing, tendering and sale of rough diamonds by foreign mining companies physically into Surat — the city where most of the world's diamonds are actually cut and polished.

What Happened

The Central Board of Indirect Taxes and Customs issued Circular No. 44/2026-Customs on 28 September 2026, approving a new Special Notified Zone on the second floor of Tower-B at the Surat Diamond Bourse (Dream City, Khajod), Surat. The new SNZ replaces the existing zone at Gujarat Hira Bourse, Ichhapore. The move was proposed by the Gems and Jewellery Export Promotion Council (GJEPC) through its subsidiary, the Surat International Diatrade Centre.

The facility lets eligible foreign mining companies bring rough diamonds into India for viewing, tendering, auction or sale to Indian manufacturers and traders, under customs control.

Why / Background

A Special Notified Zone is a customs-controlled facility where imported rough diamonds can be examined, sealed and stored before they are sold or re-exported — without being treated as a normal home-consumption import at the point of entry. The SNZ concept was created so that global miners (which generally sell rough only through their own channels) could showcase and auction stones on Indian soil rather than forcing Indian buyers to travel to Antwerp, Dubai or other trading hubs.

Until now, that activity ran through the SNZ at Ichhapore. Shifting it to the Surat Diamond Bourse places it at the heart of the manufacturing cluster and inside a purpose-built trading complex, reinforcing Surat's ambition to be a global rough-diamond trading hub alongside its cutting-and-polishing dominance.

Who Benefits

Surat-based diamond manufacturers and traders, who can now view and buy rough closer to their factories.
Foreign mining companies, which get a modern, secure venue for tenders and auctions in India.
The gems and jewellery export sector, for which rough-diamond access is the top of the value chain feeding India's polished-diamond exports.
Customs brokers and logistics providers handling diamond air cargo between Mumbai and Surat.

How the SNZ Will Operate

The circular lays down a tightly supervised workflow:

Air cargo only. Rough diamonds arrive by air and are transhipped from the Air Cargo Complex at Sahar (Mumbai) to Surat; they do not move as ordinary sea or courier consignments.
Verification on arrival. Carat weight is checked against the invoice, packing list and Kimberley Process Certificate, after which parcels are sealed and held in a strong room.
Viewing and bidding. Eligible traders may visit to inspect stones and bid or buy, subject to eligibility and security conditions.
Re-export clock. Unsold diamonds must be re-exported within 75 days of import.
Clearance of sold lots. Sold parcels are released only after assessment, payment of applicable customs duty and an Out-of-Charge order.
Authorisation to start. The zone can begin operating only after written authorisation from the Principal Commissioner / Commissioner of Customs, Ahmedabad; customs has already inspected the premises and the layout has been certified by a registered architect.
Orderly transition. The process to de-notify the Ichhapore SNZ must begin within 10 days of the new facility going live, and the changeover is to avoid disrupting ongoing operations.

What Diamond Traders and CHAs Should Do Now

Confirm eligibility to participate in the new SNZ through GJEPC / Surat International Diatrade Centre before the first tenders.
Plan logistics around the Mumbai (Sahar ACC) to Surat air-transhipment route and build in customs sealing/strong-room steps.
Track the go-live authorisation from the Commissioner of Customs, Ahmedabad, and watch for the de-notification timeline of the Ichhapore zone.
Diarise the 75-day re-export deadline for any unsold parcels to avoid compliance issues.
Keep Kimberley Process documentation aligned with invoice and packing-list carat weights to clear on-arrival verification smoothly.

The Bigger Picture

Co-locating rough-diamond trading with the world's largest cutting-and-polishing base is a logical step for a sector that accounts for a large share of India's gem and jewellery exports. If the Surat SNZ attracts direct tenders from major miners, it could shorten the supply chain for Indian manufacturers and reduce dependence on overseas trading hubs — though the volume that actually migrates will depend on how miners route their global sales.

Frequently Asked Questions

What is a Special Notified Zone? A customs-controlled facility where imported rough diamonds are examined, sealed and stored for viewing, auction or sale, and then either sold (and cleared on duty payment) or re-exported, without a normal home-consumption import at entry.

Does this change anything for polished-diamond or jewellery exporters? Not directly. The SNZ concerns rough-diamond import, viewing and sale. Its benefit to the wider sector is better upstream access to rough.

When does the Surat SNZ start operating? Only after written authorisation from the Principal Commissioner / Commissioner of Customs, Ahmedabad. The circular does not fix a public start date.

What happens to unsold rough? It must be re-exported within 75 days of import.

This summary is for general guidance. Diamond traders and CHAs should read CBIC Circular No. 44/2026-Customs in full and confirm procedures with GJEPC and the Customs authorities at Ahmedabad/Surat before transacting.