Procedure for Exporting Diamonds from India — India Export Tips

How to export diamonds from India
How to export diamonds from India
How to export diamond from India ? — Euro Exim Bank

India — Largest Exporter of Diamond

· India is among the largest exporters of diamonds around the world

· Although the country does not produce diamonds of its own, it imports them from other nations and then processes them for re-export

o India holds a market share of nearly 18.8% in the global diamond export industry

o The global diamond industry has recorded consistent growth over the past few years

· During the year 2019–20, India exported cut and polished diamonds in excess of $18.66 billion

o The top destinations for Indian diamonds are the US, Europe, Japan, and China

o Although the overseas demand has been hit by the COVID-19 crisis, it is likely that it will normalise over the next few quarters

· In case an Indian trader wants to export diamonds, they need to follow certain steps

o This blog assesses the entire procedure for exporting diamonds from India

How to Export Diamonds from India

· The first step is to ensure that you have all the required documents in place. This includes documents such as a PAN card, an EIC, as well as a current account

o You will also need to register a company with the government so that you are able to pay your taxes

· Once you have all the documents in place, the next step is to identify the designated codes for your product. You need to find out the HS code under which the specific diamond product is categorised

· After that, the next step is to look at the permissions that you will need

o Some of these permissions include a Kimberly Process Certificate, a Pre-Shipment Inspection Certificate, as well as a Customs Clearance

· Further, you also need to provide detailed specifications of the products in an invoice

o You will also need to produce a purchase order and documents against payment (DAP)

· You also need to ensure that your payment is protected. One of the best ways to do this is to make use of financial instruments such as bank guarantees

o Indian diamond exporters can minimise the risks of exporting diamonds by consulting with companies that provide trade finance solutions

· After completing all of the above steps, you are ready to export diamonds from India. It is also advisable that you contact the overseas buyer and ask for all the receiving documents. This will minimise your export risk even further

Conclusion

· To conclude, it is clear that the Indian diamond export industry continues to grow. In order to maximise their earnings and minimise their risks, Indian diamond exporters can often seek help from external sources. Institutions such as Euro Exim Bank offer customised support in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers trade financial instruments such as Bank Guarantees and Letters of Credit (LCs). These instruments reduce the overall risk associated with your trade and help you in growing your business. Further information about Euro Exim Bank and its key product offerings is available here.

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