Procedure for Exporting Diamonds from India — India Export Tips
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
India holds a market share of nearly 18.8% in the global diamond export industry
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
The top destinations for Indian diamonds are the US, Europe, Japan, and China
Although the overseas demand has been hit by the COVID-19 crisis, it is likely that it will normalize over the next few quarters
In case an Indian trader wants to export diamonds, they need to follow certain steps
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
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 categorized
After that, the next step is to look at the permissions that you will need
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
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
Indian diamond exporters can minimize 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 minimize your export risk even further
Conclusion
To conclude, it is clear that the Indian diamond export industry continues to grow. In order to maximize their earnings and minimize their risks, Indian diamond exporters can often seek help from external sources. Institutions such as Euro Exim Bank offer customized 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.
