Itod Project Final Hs7102

8/11/2019 Itod Project Final Hs7102

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Indian Trade scenario in cut and polished Diamondsector

Sohini Roy (48A)Sanjeev Kumar (42A)Pratik Godhane (35A)

Indian Institute of Foreign Trade


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CONTENTS

Content table 21. Diamond Industry

a. Overview 3b. Value chain: Value additions at different stages 3c. Demand-Supply comparisons 6d. Major Importer and exporter countries 8e. Major players: 9

2. Indian Industrya. Overview 10

b. Regulating Bodies: 11c. SWOT: Indian Diamond Industry 11

3. Policies on Diamond Trade in Indiaa. Trade policies 12b. FDI Policy 14c. Diamond Dollar Account 14d. Documentation 15

4. Volatility in Diamond trade 165. Past Trend in Diamond trade in India

a. Statistical background 17b. Recent decline(analysis) 19

6. ISSUES AND CHALLENGESa. Issues Under BAP 21b. Tax challenges 21c. Other Risks 22

7. Export Strategy for Dubai: Related recommendationsa. Growth potential: World 23b. Major Export Destination : UAE Strategy 25c. Recommendation 26

a. Tax Related 27b. Procedures related 29c. Other Recommendation 29

APPENDIX 31


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"INDIAN TRADE SCENARIO IN CUT AND POLISHED DIAMOND SECTOR

1. DIAMOND INDUSTRY Overview

Diamond comes from the Greek adamao, transliterated as adamao, I tame, I subdue. Theadjective adamas was used to describe the hardest substance known, and eventually becamesynonymous with diamond. Knowledge of diamond and the origin of its many connotations startin India, where it was first mined. The word most generally used for diamond in Sanskrit istransliterated as vajra. The earliest known reference to diamond is a Sanskrit manuscript, theArthsasastra by Kautiliya. The Ratnapariksa for Buddha Bhatta is a 6th century treat ise on gems.The manuscript summarizes Indias knowledge about diamond. For 1,000 years, starting inroughly the 4th century BC, India was the only source of diamonds. World famous diamonds suchas Koh-L-noor, the orlof, The great Mogul, Sancy Hope, Floretine, Nassak, regent, Pitli, Nizam etc

were the products of India. In 1725, important sources were discovered in Brazil, and in the 1870smajor finds in South Africa marked a dramatic increase in the diamond supply. Additional majorproducers now include Russia, Canada, Botswana, Australia, DR Congo, Ghana etc. Todaydiamonds are mined in more than 25 countries. Geological processes create two basic types ofdiamond deposits, referred to as primary and secondary sources. Primary sources are theKimberlites a nd lamproite pipes that raise diamonds from Earths mantle, where they originate.Secondary sources, created by erosion, include such deposits as surface scatterings around a pipe,concentrations in river channels and fluxes from rivers moved by wave action along ocean coats,past and present. The use of diamonds as gemstones of decorative value is the most familiar use tomost people today. Since around 1900, experts in the field of gemology have developed methodsof characterizing diamonds and other gemstones based on the characteristics most important totheir value as gem. Diamonds are one of the worlds major resources and historically one of theleast understood. For many years observers and even many participants have considered thediamond industry to be complex and difficult to comprehend, even impenetrable. Major changesover the past 50 years have transformed the diamond industry. New diamond supplies haveemerged, and mining and production have expanded beyond southern Africa to Russia, Australiaand Canada. Commercial production of diamonds started in South Africa in 1870 and hadexpanded to four continents by the early 2000s, with 133 million carats produced in 2010 (seeFigure 7). Today most commercially viable deposits are found in Australia, Botswana, Canada,Russia and South Africa. Russia produces nearly one quarter of global diamond output by volume,followed closely by Botswana.

Value chain: Value additions at different stages

Eight stages define the value chain in the diamond industry, beginning with the exploration of apotential diamond deposit and ending with the demand for diamonds by millions of consumersaround the world. Along the way many different players miners, dealers, craftspeople,jewellers face distinct market dynamics and economic challenges.


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Exploration: In this stage producers seek commercially viable diamond resources, usually byfinding and evaluating kimberlite and lamproite pipes that might contain diamond ore. When apromising site is located the producers develop and construct new mines.

Production : Getting the diamondiferous ore out of the ground usually occurs through open-pit orunderground mining. Alluvial and marine mining are two other methods of diamond production.Once mined, the diamond ore passes through various processing stages to extract rough diamondsfrom it. Next producers inspect, classify and prepare the diamonds for rough-diamond sales.London, Moscow and Antwerp are the main centres for the purchase and trade of roughdiamonds. These primary sales most often take place within the sight-holder system, a systemspecific to the diamond industry in which a select group of verified buyers are allowed topurchase rough product. Other sales channels include auctions and spot sales.

Cutting and polishing : This stage, in which diamonds are transformed from rough stones into

finished gems, comprises five steps: determining the optimal cut, cleaving or sawing to break therough diamond into pieces, bruiting to give the diamond the desired shape, polishing to cut thefacets and final inspection to ensure quality. Diamond cutting requires specialized knowledge,tools and equipment. Thousands of small players populate this segment of the industry, mostly inIndia and elsewhere in Asia. Governments are increasingly requiring diamond producers to keepsome profits closer to home by developing a local infrastructure and talent, with the result thatcountries including Botswana are emerging as cutting and polishing centres.

Jewellery manufacturing : Manufacturers use both in-house and outside designers to createtheir product, and the sector is quite fragmented. Thousands of players ranging from individualshops to large companies such as Tiffany, Cartier and Chow Tai Fook are integrated into differentsteps of the value chain, from rough diamond sales to jewellery design and manufacturing toretail. A large share of the mid- to low-range jewellery manufacturing takes place in China andIndia.

At either end of the value chain a handful of well-known public companies operate and earn theindustrys highest profits. In the middle of the chain diamonds pass through a complex andfragmented distribution system in which many thousands of individuals and small businesses,almost all privately owned, are bound together in an intricate web of relationships. These cutters,

polishers and manufacturers engage in a significant amount of back-and-forth trading.The value of diamonds increases significantly as they travel through the pipeline from the mine tothe final market, nearly quintupling over the course of the journey. The greatest value $25billion or more in both cases is added at the jewellery manufacturing and retail stages. Rough-diamond production generates revenues of $14.8 billion. The revenues grow to $47.2 billion whenthe diamonds are manufactured into jewellery and grow again to $72.1 billion when the jewelleryis sold at retail. Rough-diamond production remains the most attractive point on the value chain,boasting profit margins of 16 20%


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Fig 1: Value chain additions and players in Industry

Fig 2: Price/Value increase in Value chain of Diamond

14.8 15.2 20.7 22.6 47.272.1

25.025.0

Sales In Bn $ at different stages2.0

6.00.4

16-20% 1-8% 11-14%

200,000

Increasing cost of mining andexploration

Increasing beneficiation requirement

Increasing cost competitivenessin cutting and polishing

Access to rough diamonds

Securing supply of requiredassortment

ALROSA, De Beers, Rio Tinto,BHP Billion, Petra Diamonds,

Diamcor, Endiama

Pluczenilk, Cristall,Diarough, Rosy Blue, ChoiTai Fook, Dimexon, Spira

Tiffany & Co., Richemont,LVMH, Signet and 250,000+

retailers

128 65-75 25

ROUGH DIAMONDS

Margin

No Of la ers

Keychallenges

POLISHED DIAMONDS DIAMOND JEWELRY

Exploration andproducti

Exploration andproducti

Cuttingand

polishin

PolishedDiamond sales

Jewelrymanufac

turing

RetailManufacturing

PRODUCTION

Major Players

120

200

900

Total RoughDiamonds

Gem QualityRoughDiamonds

PolishedDiamonds1.8 X 4.5 X

AVERAGE PRICE PER CARAT, in $ (INCREMENTWITH DIFFERENT STAGES)


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Demand-Supply comparisonsDemand supply gap is expected to increase further because of increase in demand especiallybecause of increase in demand from developing countries like India and China. Over the nextdecade, a range of possible scenarios based on macroeconomic trends and an increasing

appetite for diamond jewellery in key markets indicates that demand for rough diamonds willoutpace supply. This imbalance translates into a positive outlook for diamond producers andsupport for a potential long-term price increase.

Fig 3: Demand Supply Forecast for Diamond

Fig 4: Demand Comparison 2012 Vs 2020

0

50

100

150

200

250

300

2010 2012F 2014F 2016F 2018F 2020F

Demand

Supply

DEMAND SUPPLY FORECAST FOR DIAMOND

37%

14%10%

10%

9%

7%

13% 33%

11%

7%12%

12%

13%

12%

Demand Comaprison 2012(Inner) Vs2020

US

EUROPE

JAPAN

REST OF ASIA

INDIA

CHINA

OTHERS


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African countries account for most of the worlds diamond resources. The true level of Africasreserves and resources may be even higher than indicated, because large sections of the continentthat potentially hold diamonds remain unexplored. The total level of diamond reserves hasremained fairly stable in recent years, at 2.3 billion carats, with total global production roughlyoffsetting additional reserves. The approximate balance between additional reserves and annualproduction implies strongly that the overall production landscape will not markedly change in thenear term. However, most new reserves are incremental and of relatively lower quality thandiamonds currently being extracted. The last major mine was discovered in Zimbabwe in 1997.

Fig 5: Major producers in the world


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Fig 6: Annual production in the world

Major importers and exporters

India, United States of America, Belgium, Hong Kong, Israel, United Kingdom and China are themajor importers of either rough or polished diamonds. Import in China and India is expected toincrease further owing to growing middle class.

Fig 8: Major Importers in the world

India, United States of America, Belgium, Hong Kong, Israel, United Kingdom and UAE are themajor exporters of either rough or polished diamonds. Export from China and India is expected toincrease even further going ahead into the next decade.

2006 2007 2008 2009 2010 2011 2012

176168 163

120 128 123 128

Annual Production

20882474 2025245018865207 18357745

8927007 8225882 81205145757882

India UnitedStates of America

Belgium Hong Kong,China United ArabEmirates Israel UnitedKingdom China

Major ImportersTotal Import in 2012-13 (In US$'000)


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Fig 9: Major Exporters in the world

Major players

ALROSA: The predecessor of Russias largest diamond company was founded in 1957 in theUnion of Soviet Socialist Republics (USSR). In 1992 it was transformed into the joint stockcompany ALROSA. Key shareholders are the Russian Federation government with 51 percent, thestate government of the Yakutia Republic (32 percent) and local municipalities (8 percent).

BHP Billiton: A global diversified natural resources company, BHP Billiton was founded in 1885.The company owns 80 percent of the Ekati mine in Canada; in 2010, its share of diamondproduction rom that mine totaled three million carats. Diamond sales constituted 2.4 percent oftotal company revenues in 2010.

De Beers: Founded in 1888, De Beers grew into a family of interrelated companies in diamondmining, trading and industrial diamond manufacturing. Key shareholders are Anglo American, theOppenheimer family, and the government of Botswana. Rough-diamond production in SouthAfrica, Namibia, Botswana and Canada makes up the core business. De Beers production in 2010was 33 million carats.

Rio Tinto: Founded in 1873, Rio Tinto is a diversified UK Australian mining and resources groupwith headquarters in London and Melbourne. The company produces diamonds in Australia,Canada and Zimbabwe.

India Belgium Israel UnitedStates of America

HongKong,China

UnitedArab

Emirates

UnitedKingdom

22353494

18076131 17470158 1698879313485402

9696685 8733202

Major ExportersTotal Exports in 2012-13 (In US$ '000))


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2. INDIAN INDUSTRY

OverviewThe diamond jewellery industry occupies an important position in the Indian economy. It is aleading foreign exchange earner, as well as one of the fastest growing industries in the country.Diamonds account for 54% of the total gem and jewellery export basket of the industry and Indiais worlds leading exporter of Cut and Polished Diamonds. A major contributor to the creditableperformance of the industry is the massive diamond manufacturing sector, which employs nearlyone million people across the country. The industry has grown from its small origins in the 50sand has established itself as the worlds largest manufacturing centre of cut and polisheddiamonds for the last many years, contributing 60% of the worlds supply in terms of value, 85%in terms of volume and 92% in terms of pieces. Surat along with Navsari, Bhavnagar, Amreli areknown as the diamond manufacturing/processing hub whereas Mumbai is the diamond tradinghub. India is the world leader in diamonds both in quantity and value terms. This pre-eminentposition has been achieved through progressive liberalization of Government policies,entrepreneurships and skilled labour. India has achieved global leadership position, in thebusiness of cutting and polishing diamonds also due to its price competitiveness and willingnessto work for low margins. 14 out of every 15 diamonds set in jewellery worldwide are processed inIndia. India has already established itself as International Diamond Manufacturing Hub. Indiandiamantaires have gone on to create a marketing network worldwide. Added to this is the strongfinancial base of the industry and support of financial institutions of the country. India is the largest diamond cutting and polishing centre in the world - the Indian diamond cuttingand polishing industry enjoys 60 per cent value share, 85 per cent volume share and 92 per centshare of the world market in terms of number of pieces. In other words, nearly 9 out of 10diamonds sold worldwide are cut and polished in India.

0

20

40

60

80

100

120

140

160

180

1990 2000 2005 2006 2008 2010

Others

BHP Billiton

Rio Tinto

Alrosa

De Beers


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Indian diamond jewellery industry is the third largest consumer of polished diamonds after USAand Japan. Diamond jewellery consumption is likely to jump to nearly 80 per cent in 2010 andover 95 per cent between 2010 and 2015.

Today, after creating a niche for itself in the diamond world with small diamonds, India isdeveloping skills for cutting and polishing larger stones and fancy cuts. Indian diamond polishingfactories are on par with the worlds best employing cutting edge of technology using lasermachine, computerized yield planning machines, advanced bruiting lathe, diamond impregnatedscaives etc.Other successful Global Diamond Trading Centres like Belgium, Israel, China and Dubai realizingthis offer low and predictable taxation regimes for diamond business. This has meant that despiteIndias current dominance in manufacturing, it has failed to become a hub for rough diamonds,thus increasing the transaction cost of our exporters in way of travel costs, cost of brokerage andetc. Also small manufacturers suffer more as they do not have the reach and capability to deal with

suppliers of roughs in Hong Kong, Belgium, Dubai and etc, thus totally dependent on secondarysuppliers.

India processes about 92 percent of the world's diamonds, followed by Belgium, Israel and China.Most of the diamonds are sourced from world miners through Dubai. India, the world's largestprocessor of rough diamonds, gets most of its supply from firms such as top producer De Beers,mining giant Rio Tinto, and Russian state-owned Alrosa.

Regulating Bodies:

The Gem and Jewellery Export Promotion Council (GJEPC): This is the apex body of the gemand jewellery trade in India, which was set up in 1966 for promoting precious stones andjewellery exportations. With strength of 6,500 members spread all over the country, the Council isprimarily involved in introducing the Indian gem & jewellery products to the international marketand promotes their exports.

The Gem and Jewellery Trade Council of India (GJTCI): This council is established with themain aim of boosting the gem and jewellery trade of India. It plays an important role inshowcasing the Indian gem and jewellery to the international market.

SWOT : Indian Diamond Industry


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3. POLICIES ON DIAMOND TRADE IN INDIA

Policies on diamond trade in India1. Duty free Import Entitlement (based on FOB value of exports during previous financial

year) of Consumables and Tools, for Cut and Polished Diamonds is 1%.2. Duty free import entitlement of commercial samples shall be Rs. 300,000.3. Import of Diamonds on consignment basis for Certification/ Grading & re-export by the

authorized offices/agencies of Gemological Institute of America (GIA) in India or otherapproved agencies will be permitted.

4. Extension in number of days for re-import of unsold items in case of participation in anexhibition in USA Increased to 90 days.

5. An exporter with annual export turnover of about US$ 831.289 (Rs 50 million) for each of

the past three years may export cut and polished diamonds of 0.10 carat and larger to

Strengths :

- One million craftsman associated with it. theirskills can be harnessed for designing andmaking modern jewellery.- Abundance of cheap and skilled labor in India.- Excellent marketing network spread across theworld.- Supportive government industrial/ exim policy

Weaknesses:

- High domestic interest rates compared toelsewhere- Small firms lacking technological/ exportinformation expertise.- Traditional Way of Crafting : Low productivitycompared to labor in china, Thailand and Shrilanka.- As the major raw material requirements need to beimported, companies normally stock huge quantitiesof inventory resulting high inventory carrying costs.Rough diamonds as raw material account for morethan 50 per cent of imports in gems and jewellerysector.

Opportunities :

- New markets in Europe & Latin America- Growing demand in south Asian & far eastcountries.- Removal gold control act.

Threats :

-Changing fashion: Global marketing requires achanging fashion of gems and jewellery particularlyin the context of very high prices of diamond, goldand silver

- China, Sri Lanka and Thailand's entry in smalldiamond segment- Infrastructural bottlenecks, frequent changes inexim policies, irregular supply of gold.- Over dependence on single-channel supply chain.Decisions of De Beers and Argyle's terms forrenewing their supply contract.

- Anti Social Activities and Threat of Terrorism: Antisocial activities are increasing especially in majorcities like Delhi and Mumbai. Security has becomeone of the major issues for the gems and jewellerysector

SWOT


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authorized laboratories with re-import facilities at zero duty within three months of thedate of export.

6. In an endeavour to make India a diamond international trading hub, it is planned toestablish Diamond Bourse

7.

Import of rough diamond from Cote dIvoire shall be prohibited in compliance toParagraph 6 of UN Security Council Resolution (UNSCR)64(2005).8. The import/export of rough diamond (HS Code 712010,710221, or 710231) from/to

Venezuela shall be prohibited in view of voluntary separation of Venezuela from theKimberley Process Certification Scheme (KPCS). No Kimberley Process Certificate shall beaccepted/endorsed/issued for import and export of rough diamonds from / to Venezuela.

9. Every exporter or importer shall comply with the provisions of FT (D&R) Act, the Rules andOrders made there-under, FTP and terms and conditions of any Authorisation granted tohim. All imported goods shall also be subject to domestic Laws, Rules, Orders, Regulations,technical specifications, environmental and safety norms as applicable to domesticallyproduced goods. No import or export of rough diamonds shall be permitted unlessaccompanied by Kimberley Process (KP) Certificate as specified by Gem & JewelleryEPC(GJEPC).

10. Diamond export product shall be e ineligible for Duty Credit Scrip, under FMS scheme.11. Exporters of gems and Jewellery can import / procure duty free inputs for manufacturing.12. Replenishment authorization: Exporters may obtain Replenishment (REP) Authorisations

from RA in accordance with procedure specified in HBP v1.Replenishment authorisation may also be issued for consumables & tools as per paragraph$A.28 of HBP v1.

13. Import of Diamonds for Certification/ Grading & re-export: The authorizedoffices/agencies in India of Institute of America (GIA) or any other agency approved in thisregard, shall be permitted to import diamonds to their laboratories for the purpose ofcertification/grading reports by them with a condition that the same should be re-exportedwith the certification/grading reports issued by them without any import duty, as per theprocedure laid down in HBP v1.

14. Nominated Agencies: Nominated agencies are Diamond India Limited (DIL), Gems &Jewellery Export Promotion Council (G&J EPC)), Star Trading House (only for Gems &Jewellery sector) and Premier Trading House under Paragraph 3.10.2 of FTP and any otheragency authorised by RBI. Exporters (except EOUs and units in SEZ) may obtain gold /silver / platinum from nominated agency(s). Procedure for import of precious metal bythese agencies (other than those authorized by RBI and the Gems & Jewellery unitsoperating under EOU and SEZ schemes) and the monitoring mechanism thereof shall be asper the Provisions laid down in HBP v1.

15. Diamond Dollar account: Firms and companies dealing in purchase/ sale of rough or cutand polished diamonds s/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 orexport of diamonds / coloured gemstones/ diamond and coloured gemstones studded

jewellery / plain gold jewellery, and having an average annual turnover of Rs 3crores or


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above during preceding three licensing years, may also carry out their business throughdesignated Diamond Dollar Accounts(DDA).Dollars in such accounts available from bank finance and / or export proceeds shall be usedonly for:

(i) Import / purchase of rough diamonds from overseas/ local sources;(ii) Purchase of cut and polished diamonds, coloured gemstones and plain gold jewelleryfrom local sources;(iii) Import / purchase of gold from overseas/ nominated agencies and repayment of dollarloans from the bank;(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 polisheddiamonds and coloured gemstones so supplied by non-DDA holder will also be countedtowards discharge of his export obligation and / or entitle him to replenishmentAuthorisation.

16. Export on consignment basis: Gems & Jewellery exporters shall be allowed to exportdiamond, gemstones & jewellery on consignment basis as per HBP v1 and Customs rulesand regulations.

17. Scrap / waste /remnants generated through job work may either be cleared from jobworkers premises on payment of applicable duty on transaction value or destr oyed inpresence of Customs / Central Excise authorities or returned to unit. Destruction shall notapply to gold, silver, platinum, diamond, precious and semi-precious stones.

FDI Policy

For exploration and mining of diamonds and precious stones FDI is allowed up to 74% under theautomatic route .

Diamond Dollar account:

In an attempt to provide some relief to diamond exporters, the RBI has allowed them toopen Diamond Dollar Accounts (DDA) on a case-to-case basis. The RBI has asked banks to

open DDA accounts for exporters who comply with the eligibility criteria stipulated in thegovernment's Foreign Trade Policy. DDA holders would be allowed the following credits:

amount of pre-shipment and post-shipment finance availed in dollars; realisation of exportproceeds from shipments of rough, cut, polished diamonds and diamond studdedjewellery; and, realisation in dollars from local sale of rough, cut and polished diamonds.

Account holders would be allowed to pay for import or purchase of rough diamonds fromoverseas or local sources as well as pay for purchase of cut and polished diamonds,coloured gemstones and plain gold jewellery from local sources.

Payment for purchase of gold from overseas/ nominated agencies and repayment of dollar

loans availed from the bank would also be permitted along with transfer to rupee accountof the exporter.


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Under the scheme of Government of India, firms and companies dealing in purchase / saleof rough or cut and polished diamonds / precious metal jewellery plain, minakari and / orstudded with / without diamond and / or other stones, with a track record of at least 3years in import / export of diamonds / coloured gemstones / diamond and coloured

gemstones studded jewellery / plain gold jewellery and having an average annual turnoverof Rs. 5 crores or above during the preceding three licensing years (licensing year is fromApril to March) are permitted to transact their business through Diamond Dollar Accounts.

They may be allowed to open not more than five Diamond Dollar Accounts with theirbanks.

Eligible firms and companies may apply for permission to their AD Category I banks inthe format prescribed

Documentation

At present, for export of cut and polished diamonds, an exporter has to make 21 invoices, 2 GRforms, 3 Green Delivery Challans and 4 Shipping Bills per shipment. Total number of documentsbeing filed is 30. We recommend that this may be reduced to 7 invoices; 2 GR forms; NIL greendelivery challans and 3 shipping bills. Hence the total numbers of documents proposed are 12.

(a) 21 invoices : Department Present No. of Copies

Custom 5CHA 5Bank /Exporter 11Total 21

b) GR Form: 2;

Department Present No. of Copies

Custom/RBI

Presently 2 copies of GR Form are required forCustom/RBI purpose. Filing of GR form is not necessary for

the goods upto US$ 25000.

c) Green Delivery Challan (Exporters Declaration): 3;


3d) Shipping Bill : 4


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CHA 1Customs Stats

Department 1Custom Record Dept 1EP Copy 1Total 4

4. VOLATILITY IN DIAMOND TRADE

The diamond industry in general has been facing severe headwinds in the last 5 years, since theonset of the financial crisis, which has changed the nature of doing business :

Diamond price volatility has become a new challenge which all diamond companiesnow have to face. In the past, prices of both rough and polished were stable, with a steadyannual increase of 1-4%. Post global economic turmoil in 2008, the scenario has changed.The industry experiences periods of volatility, where prices can change much in a shorttime. Price falls are typically more severe than the increases. The reasons for this volatilityis :-a . Changing demand patterns of emerging countries like China

b . Fragmentation of rough supplies, with De Beers now accounting for 35-38% of rough

supplies as compared to previous 85% of supplies, and hence rough producers nowpreferring to sell what is produced, rather than holding goods to maintain prices

c. Increased speculation in rough and polished trading by few entities

The volatility in prices makes it extremely difficult for manufacturers to be able topredict their profitability. Manufacturers will have a rough purchase to polished salescycle of 3-6 months. In addition to this the fluctuations in the value of the Indian Rupee hasfurther increased volatility as diamonds are essentially priced in USD in the internationalmarket.

Fragmentation of rough supplies has meant that the attitude of rough producers is thatthey want to maximize the revenues for their rough at the cost of their customers .Large producer like Alrosa and De Beers, who have long term supply contracts, are quick toraise prices, while they maintain high rough prices when polished prices fall. Long termcontract customers continue to pay the high prices and bear losses to ensure that theirsupply contract continues.

The value addition of the diamond polishing sector has reduced to 15-20% from the20-25% which it commanded over a decade ago. Over the last decade, the cost of valueaddition from polishing has remained nearly static, while the rough and polished prices

have moved up. This is true even in India, which polishes lower quality goods, i.e where thevalue addition is higher.


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The pricing volatility makes it more difficult in diamonds, where typical mid-sizemanufacturer would have over several thousand qualities of polished in stock . Theprices of each of these qualities can move independently, depending on the demand andsupply for each quality.

5. PAST TREND IN DIAMOND TRADE IN INDIA

Statistical Background:

Fig: Export-Import data of India in DiamondsThe major markets for cut and polished diamonds are Hong Kong, UAE, USA, Belgium, Israel etc.the overall potential for growth in the cutting and polishing industry is limited, mainly due to therestricted supply of raw materials i.e. rough diamonds in the country. However, the diamondtrading business, which is centered in Antwerp, Israel, can be attracted to the India, given thelarge cutting and polishing activity that happens in India and the sizeable domestic market.

Indian Diamond Export


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Fig: Indian Diamond Export

Fig: Major Destinations of Export

2009-2010

2010-20112011-2012

2012-20132013-2014(apr-sep)

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

DIAMONDS

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014(apr-sep)

0500000

100000015000002000000250000030000003500000

400000045000005000000

Hong Kong U Arabemts USA Belgium Israel2011-2012 4273465.88 2976724.12 2414325.98 1573885.09 694663.81

2012-2013 4493221.5 2346859.9 2758633.27 1221580.31 625985.65

2010-2011 3329929 4710147 1679010 922212.56 434659.11

2009-2010 2594740.87 2511651.6 1505998.31 738998 349664

2013-2014 2856693 2045015 1559112 718656 400591

A x i s T i t

l e

Export Values (in Lakhs)


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Fig: Major Import sources for India

Fig: Recent decline in export (analysis)

Recent decline in export (analysis)

The Indian Diamond Industry is currently going through a downturn phase. The total exports ofcut and polished diamonds during FY 2011-12 and 2012-13 (Apr-Dec) witnessed decline of 17%and 36% respectively.

The main reasons are:

0.0010,00,000.0020,00,000.0030,00,000.0040,00,000.0050,00,000.00

60,00,000.0070,00,000.00

Belgium UArabemts

HongKong UK Israel

2009-2010 21,53,107.67 19,16,361.07 20,68,159.73 3,75,667.18 3,14,754.99

2010-2011 31,88,994.01 60,67,269.90 31,88,890.40 5,03,312.78 5,38,166.83

2011-2012 3934748 3549437 3307321 653008 614137

2012-2013 4494234 2986359 1893417 652576 648359

2013-2014 23,76,130.78 18,18,438.34 11,94,975.23 2,98,667.16 2,73,574.44

A x i s T i t l e

Import values( in lakhs)

2010-112011-12

2012-13

29,425.82

28,090.1223,270.73

Fall In Exports: India


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Record fall of rupee against the dollar, around 3 to 5 per cent decrease in the certifiedpolished diamond prices.

The certified polished diamond prices decreased by almost 5.5 per cent since late andthere is no reduction in the rough diamond prices.

Most of the diamantaires are holding their inventories anticipating further price reduction.Industry sources said the dealers and jewellery companies in US, China, Belgium and UAEare grappling with rising diamond inventories and falling prices, as the slack globaleconomy prolongs a year-long slump.

It is estimated that about $20-$25 billion worth of polished gems are in the diamondinventories.

Reason: the diamantaires indulged in a large-scale round tripping or circulartrading of the polished diamonds by importing and exporting the same goods since2009. US followed by UAE were the top destinations for round-tripping of goods.

Interestingly, the diamantaires were not in the position to import the polisheddiamonds in 2012 following the Central government suddenly imposing 2 per centimport duty on polished diamonds in January-2012.

Diamond prices are still struggling to recover since falling off a cliff over a year ago, when theglobal economic outlook darkened suddenly, spoiling the plans of speculators who had stocked upin anticipation of a stronger economic recovery after the 2008-09 crisis. Successive waves of theEuropean sovereign debt crisis kept prices low and leery lenders passed higher borrowing costson to diamantaires, the craftsmen who cut diamonds and who depend on financing for 90 per centof their rough diamond inventory.

Rise of chinas diamond trade

China has woken up faster than India. As China was already considering Africa as a majorinvestment destination for infrastructure, it included the diamond industry as part of the deal. It isnot an understatement to say China has a vested interest in developing Africas infrastructurethrough loans underwritten by the continents vast natural wealth. Beijing has committed billionsof dollars in the resource-rich Dark Continent $6 billion to Congo, $8.4 billion to Nigeria and$16 billion to Ghana.

The China Development Bank (CDB) announced last year it could invest up to $10 billion inZimbabwes mining and agro sectors. In 2012, President Robert Mug abe opened a new $98-million military academy erected by Chinese contractors the project cost is being repaid byZimbabwean diamonds. China is initiating multi-billion dollar deals for rough diamonds inexchange for goods it produces, ranging from medicines, oils, and industrial goods and services.

Chinas huge investments in Africa are a danger to the Indian diamond cutting and polishingindustry.

Chinas overseas investment policy, first outlined in its 10th Five -Year Plan (FYP, 2001-05), hasbeen reaffirmed in the latest 12th FYP (2011-15). While motivating Chinese firms to do business
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abroad , the policy seeks to give them a competitive edge by making them acquire strategic assets,securing access to natural resources, and establishing new markets for Chinese exports.

This is amply borne out by data on Chinas diamond output, import and export in 2006 -2011:while globally there was a 3 per cent fall in rough diamond supply, China recorded an over 20 percent increase in its rough diamond imports in carat terms and a 55 per cent increase in valueterms. Clearly, India will have to adopt strategies where it can move beyond conventional sourcesof diamond supply. It will also have to ensure that the diamond industry is not burdened withtaxes which further hobble this industry. India cannot afford more loss of both jobs and exportearnings.

6. ISSUES AND CHALLENGES

Issues under BAPBenign Assessment Procedure (BAP) was introduced in the Budget for 2007 -08 by the MoF. Asper the BAP, the books of accounts of assessee shall not be subject to detail scrutiny if the saidassessee declares net profit of 8% or more of the turnover from the activity of diamondmanufacturing and trading. The said deemed threshold was subsequently revised to 6% as per aCBDT issued Instruction Order No. 2/2008 dated 22.02.2008. The BAP in its present form isavailable only to those Assessee whose profits and gains from the activity of manufacturing and/or trading of diamonds is equal to or higher than the threshold of 6%. However, the said rate of6% so prescribed is nowhere reflective of the reality in the diamond manufacturing and tradingindustry, which operates on profit margins in the range of 1% to 3% only. It should be appreciated

by the MoF that if industry were to demand profit of 6%, it would have never earned the amountof market share which it has gained by operating on low margins.

The value addition for the industry in India is to the range of 20-25%, as we deal withsmaller size and lower quality goods, which requires a higher labour content. Hence netincome is about 8-15% of such value addition of 20-25%, of the turnover, after consideringinterest costs which are paid on the entire value of diamonds.

Diamonds are traded 2-3 times before they reach marketable lots. Considering one-

3.75% on turnover (average of manufacturing and trading ranges) 12.5-30% of the value

addition This not only resulted in ineffectiveness of applicability of BAP by the industry members,but has in fact resulted in irrational deemed additional which have been subject matter ofvarious litigations.

Tax Challenges:There are certain unique characteristics of the diamond trade which make it difficult for auditorsand investigators to accurately determine the profitability of an entity. The main issues which theindustry faces on the valuation front are as follows

There are wide variations in yields and in the Gross Margins as there are wide variations inthe processes and the yield due to the variation in the rough procured


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In certain goods, companies have an option to sacrifice yield for better realization (eitherthrough better quality or even different shapes). This option will make physical (carat)yields less important. This will make comparisons still more difficult

Companies have different skills and the level of goods which are not polishable by a

particular company might also determine the yield Unique nature of the industry leads to issues of cost allocation for stock in-trade andmarket valuation thereof

There are multiple transactions in each parcel where parcels are assorted and remixed asrequired by different customers and sources of diamonds. This repeated mixing andassortment (where prices are assigned), makes it difficult to accurately put the cost to theinventory

Multiple valuations depending on the characteristics of the diamond o Typicalmanufacturers would have about 4,000 different qualities, most of which would need to be

priced separately In many cases, parcels contain a mix of qualities, so that they become more marketable lots(smaller quantities fetch lower prices, as these would be purchased by traders) This makesvaluation in assortment and mixing more complicated, and hence most diamond buyersphysically check and assort each parcel before they negotiate the price

Industry comparisons of profitability might also be quite different and can also be affectedby operating situation of the company. Given the small average manufacturing margins, theimpact can be quite substantial on overall profitability o The type of goods the companydeals with

The levels of leverage of a particular company, and hence their interest burden Foreign exchange forward and option transactions, including those with banks, are anintegral part of the business operations as o Diamonds, are always priced and dealt in USD

Foreign exchange forward and option transactions are necessary to hedge Forex risks forimport/export payment/receipt actual as well as projected and bank borrowingrepayments. In a truly hedged scenario, when all receivables are hedged, it is possible thatin a strengthening rupee scenario, the profits are shown in the forward contracts, while inreality the forex risk has been hedged

Most export bills are discounted with banks, and typically hedging transactions have been

carried out with banks

Indian Diamond Trade: other RiskBased on research conducted, analysis of case studies collected by the project team and afterconsultation with the private sector, the report concludes that the diamonds trade is subject toconsiderable vulnerabilities and risks. The closed and opaque nature of the diamonds markets andthe high value of diamonds combined with a lack of expertise in this area on the part of theauthorities have left this industry susceptible to abuse by criminals.

The diamonds trade has existed for centuries. It has developed a unique culture and tradepractices, which have their own characteristics and variations across countries andcontinents. However, the international diamond trade has changed in the last few decades:


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De Beers no longer holds the same all inclusive diamonds monopoly. A number of smaller diamond dealers have entered the market. Distribution channels have become more diverse. New trade centres have emerged with billions of dollars' worth of diamonds, and financial

transactions go in and out of newly founded bourses and their ancillary financialinstitutions.

Cutting and polishing has shifted (except for the most valuable stones) from Belgium, Israeland the US mainly to India and China, with smaller cutting centres emerging.

Cash transactions are still prevalent but the usage of cash is diminishing. The internet, as in all other facets of life, is rapidly taking its place as a diamonds trading

platform. These significant changes in the "diamonds pipeline" structure and processes raised the

question of whether the risks and vulnerabilities remain the same and whether current

anti-money laundering / countering the financing of terrorism (AML/CFT) standards andnational regulations are sufficient to mitigate the different ML/TF risks and vulnerabilitiesidentified in the research.

Some of the risks and vulnerabilities of the diamonds trade are:

Global nature of trade - The trade in diamonds is transnational and complex, thusconvenient for ML/TF transactions that are, in most cases, of international and multi-jurisdictional nature.

Use of diamonds as currency - Diamonds are difficult to trace and can provide anonymityin transactions.

Trade Based Money Laundering (TBML) - The specific characteristics of diamonds as acommodity and the significant proportion of transactions related to international trademake the diamonds trade vulnerable to the different laundering techniques of TBML ingeneral and over/under valuation in particular.

High amounts - The trade in diamonds can reach tens of millions to billions of US dollars.This has bearing on the potential to launder large amounts of money through the diamondtrade and also on the level of risks of the diamonds trade.

Level of awareness - Law enforcement and AML / CFT authorities, including financialintelligence units (FIUs), have limited awareness of potential ML/TF schemes through thetrade in diamonds. India reported a relatively large number of sanitised cases (12) in which suspicioustransaction reports were received (in connection with diamond trade). In these specificcases, Hong Kong, China is a destination for illicit cash flows related to the diamond trade.

7. Export Strategy For Dubai And other recommendations

Growth potential: World


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A balanced market over the next four years, with a growing gap between supply anddemand longer-term. The rough-diamond market is expected to remain balanced from2013 through 2017. From 2018 onward, as existing mines get depleted and no major newdeposits come online, supply is expected to decline, falling behind expected demand

growth that will be driven by China, India and the US. Over the next 10-year period, supplyand demand are expected to grow at a compound annual rate of 2.0% and 5.1%,respectively. The supply-demand outlook carries different implications for industryplayers at different points along the value chain, and it will impact the way they managetheir business activities over the next four years and in the longer run.

Fig: World Diamond Supply forecast

Fig: World Diamond Demand forecast

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Higher

World diamond production forecast

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Upstream: a focus on operational excellence, strengthening the asset portfolio andadjusting the development pipeline. With stable market conditions in the next fouryears, mining companies are likely to focus on maintaining healthy balance sheets,

attaining operational excellence and investing in technology to improve productivity. Giventhe supply-demand balance outlook, mining companies are also expected to carefullyreview their development pipelines to identify the projects that promise the highestreturns.

Middle market: continuing consolidation. The middle market has traditionally garneredthe lowest margins along the diamond value chain, with some companies earning as littleas 1 2%. Further consolidation and integration is expected in the middle of the value chainin order to maximize margins through scale and scope.

Downstream: ensuring security of supply. Diamond jewelry retailers will be looking tocapitalize on the growing demand for diamonds. Their key challenge will be to secure anadequate and consistent supply of polished diamonds in the range of sizes, shapes andcolors suited to their product lines. A number of premium retailers have already integratedbackwards along the value chain by investing in mining assets and cutting and polishingoperations and securing access to primary rough supply. This trend is expected tocontinue.

Major Export Destination: UAE Strategy

The United Arab Emirate (UAE) has beaten the US to become the top export destination for cutand polished diamonds in the last five years, , especially in world's biggest diamond cutting andpolishing centre in Surat.

The polished diamond trade between India and UAEwas not so impressive a few years ago. The polished diamond trade picked up after 2004 after a few of the big diamond companies

and traders from India set up their offices in the free zone of Dubai Multi CommodityCentre Authority (DMCC)

Dubai, a key destination for polished diamond exports from India, is fast emerging as a

significant diamond hub driven by demand from the growing Indian and Chinese middleclass.

Dubai's location means it can serve as the gateway to parts of Africa and West Asia. To facilitate the import and export of over US$35 billion of diamonds through Dubai is an

amazing achievement, especially under the challenging economic environment. Polished diamond imports during the twelve months of 2010 rose 88 per cent to 90 million

carats ($13.3 billion) Dubai is set to reinforce its position as the worlds third largest diamond trading hub wi th

the value of 2011 trading set to surpass the $35 billion mark achieved in 2010,
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DMCC, set up in 2002 as a strategic initiative to enhance commodity trade flows byproviding the physical and financial infrastructure, is committed to support industryinitiatives that are in line with its vision.

Bigger trade coming through Dubai and maybe the diamond financing will add even more

stability to the diamond business in Dubai. DMCC, which provides the infrastructure for the citys commodities trade, ranks D ubai asthe world's fourth largest diamond trading hub, behind Antwerp, New York and Mumbai.

Challenges :

UAE: barrier to growth: The GCCs tense diplomatic relationship with Israel has beenmooted as a barrier to the growth of Dubais diamond trade, as Israeli jewellers play aprominent role in the wholesale industry. But the mines are not in Israel; the productionsare not from Israel, that's the trading centre. They are competing as they are, they are avery strong competitor but as far as Dubai is concerned, our biggest trading partners isIndia, and Europe and Africa.

Problems of Round tripping: Dubai. The UAE, Indias top export destination, kept only 6.8per cent of the massive $12.43 billion worth of polished diamonds it imported from India.Rest of the consignment went back and forth between India and the UAE, four to five timesbefore they went down the pipeline

Recommendations:

TAX RELATED:

0.00

10,00,000.00

20,00,000.00

30,00,000.00

40,00,000.00

50,00,000.00

Diamond export

Indian Export to UAE

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013


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1) The industry would like to see the profit rates for computation of income tax under BAP tobe reduced to 2.5% to enable such trust to develop. This rate would encourage the majorityof the industry to become opt for the BAP and become compliant.

2) Allow for duty free re-import quota for cut and polished diamonds to the tune of 15% of

the previous years exports in value terms: In January 2012, the government introduced a2% import duty on cut and polished diamonds. The industry, through the GJEPC, hadrequested such a measure to prevent the round tripping of diamonds, which leads to aninflated import and export for the country. While this measure has had its desired effects, ithas also meant that

In above cases, though genuine returns, exporters are asked to pay the 2% import duty

Indian companies, who used to import rough diamonds polished at their factories outsideIndia, to get the quota of roughs from those countries like Botswana are alsodisadvantaged.

Allowing companies a duty free re-import quota up to 15% of the previous y ears exportturnover, will enable companies to avoid such disputes and also enable companies withfactories abroad to import polish into India. The relatively small percentage will discourageany abuse of this quota in terms of round tripping.

3) Establishment of a Special Notified Zone (SNZ) for import of rough diamonds, where netincome is fixed and taxes are paid only on invoices raised to Indian companies and not onre-exports

4) For the Diamond Sector, the system of Honorary Valuation Panels at ports of Surat andMumbai for any valuation disputes, a mechanism which was operational well prior to

Notification no 94/2007 and 95/2007 may be continued with and accordingly added insuch notifications for the Special Valuation Branch in case of valuation for diamonds. Afterthe notification following things have come which lead to further delay.Diamond parcels are checked by specially appointed and trained customs appraisers

o 100% of all parcels are checked for weighto 25% of all parcels are checked for quality and value

5) Looking at the fact that India does not produce rough diamonds and almost 90-94% of theend product of cut and polished diamonds that are manufactured in India gets exportedany indirect taxation on the sector will only result to export of taxes, the industry should be

declared as zero-rated indirect tax regime and all duties collected in way of Service Tax,VAT or GST should be refunded by way of drawback at the rates computed by way ofsurvey of actual exports.

POLICY RELATED1) Establish a special fund by RBI to the tune of USD 3-5 billion for the refinance of borrowing

given to non-petroleum export industries, which have a high import content of more than70% of their exports. In case of inability of the Govt. to provide such facility, such sectorsshould be allowed to arrange for ECB in foreign currency for their working capitalrequirements for purchase of raw material.


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2) 2% interest subvention scheme should be extended for the entire gem & jewelleryexporters as it was done in the year 2008-09The 2% interest subvention scheme on rupee export credit is currently applicable for onlySMEs in gem and jewellery Industry. The high turnovers in the industry exclude most

companies outside the SME definition. However many small diamond companies are forcedto borrow in rupees at high interest rates making them uncompetitive in the internationalmarket.

3) Just as China backs its trading community to the hilt and includes them in its overseasventures, India should follow an aggressive policy towards its investments overseas.Following Chinas example, the diamond industry could be part of the deal oninfrastructure ventures. Government efforts are a must.

4) An Export duty of 2 per cent could be levied by the Government and charged to thepolished diamond exporters. The revenue raised could be used as a corpus for benefitingthe diamond industry workforce, enhancing their job security and livelihood.

PROCEDURES RELATED:1) Reduce documentation requirements for exports from 23 to 12 copies as suggested and

agreed during the previous task group formed for the industry in the year 2006.a) GR Form: 2;

DepartmentRecommended No. of Copies (present number in

brackets)Custom/RBI 3(5)

CHA 2(5)Bank /Exporter 2(11)Total 7(21)

b) GR Form: 2(2)

Department Recommended no. of Copies

Custom/RBI

It is recommended that 2 copies of GR Form should befilled in for Customs/RBI purpose. Further, it is

recommended that the limit of clearing the goods withoutfilling the GR Form should be extended upto US$ 10,000for general firms and US$ 3, 00,000 for status holders.

c) Green Delivery Challan (Exporters Declaration): NIL(2)

Department Recommended no. of CopiesNIL (The declaration may be incorporated in the invoicesand / or GR form


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d) Shipping Bill : 3

Department

Recommended no. of Copies (Present no. in

brackets)

CHA 1Customs StatsDepartment/ CustomRecord Dept 1(2)EP Copy 1Total 3(4)

OTHER RECOMMENDATIONS FOR STREAMLINING THE PROCEDURES ARE AS FOLLOWS:

1. Separate Customs Appraisal for & processing for import & export parcels, as theobjectives of these processes are different a) Imports need to be valued correctly with100% appraisal as it is from a revenue perspectiveb) Exports are checked as follows (i) 100% of exports checked for carats, rate per carat andvalue only(ii) 25% of exports are considered for detailed valuation(iii) Current documentation procedure to be brought in line with international centres,where only point 1.b.i is checked. Checking of detailed diamond characteristics to bediscontinued2. Increase in number of appraisers & officers for Gem and Jewellery at the CustomsOutposts3. Increase in the operating hours of Customs involved in clearance of consignments ofGem and Jewellery items , along with keeping it open on Saturdays and to enable seamlessexports to avoid delays4. Implementation of EDI system at Customs and also the implementation on onlinepayment gateway system5. As per Notification no.1009RE-20100/2009-14, goods which are 0.25 carats and aboveonly are authorized for export and reimport for certification and grading purposes.Advances in grading technologies and greater customer interest in buying certified stoneshas meant that stones which are even 0.10 0.15 carats in size are now being certifiedincreasingly. Therefore this limit of minimum stone size for certification and gradingshould be reduced from 0.25 to 0.10 carats.6. Consider allowing rough diamond consignment export for certification purposes a) Somerough diamonds difficult to differentiate from treated goods after polishing (potential priceimpact of up to 30-40%)b) Labs accept and test rough diamonds before polishing and certify on that basis c) It will

encourage the polishing of larger diamonds in India


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7. Policy for Beneficiation of Indian diamantaires for Diamonds Mined in IndiaOver the last 20-30 years, there has been no significant mining or discovery of mines ofrough diamonds in India.India should consider ensuring

All rough assortment of diamonds, mined in India, should be done in India only Indian companies should have the first right of refusal to buy any rough which isproduced from the mine

Rough can be exported, only if there are no Indian buyers for that rough at theexport value

8. Pursuing Free Trade Agreements with countries which are consumers of diamonds andjewellery but have prohibitive import duties on diamonds like Brazil and Russia9. Establish separate funds for a) generic promotion of diamonds and b) promotion ofIndian-made jewellery, in key markets10. Create an Rs 200 Crore Technological Up-gradation Fund Scheme (TUFS) to enablesmall manufacturers of diamonds and jewellery access latest manufacturing technologies.11. In addition, government should establish more designing institutes of jewellerypatterns especially in major cities.12. Looking for sources other than Africa, India has now asked Russia to push Alrosa forlong-term supply contracts so that more Indian companies can source rough cuts from themining giant. The move could enable Indias state -run trading company MMTC Ltd andthe Hindustan Diamond Company Private Ltd (HDCPL) to apply for roughs from Alrosa.Anand Sharma, Indias minister of Commerce, Industry and Textiles, reportedly made arequest to this effect to E. Nabiullina, the Minister of Economic Development of RussianFederation during the latters visit to Delhi. 13. Ultimately both the diamond industry (importers, exporters and others along thevalue chain), and the Government need to work together to restore Indias premierposition. The country once produced the worlds best 2A quality diamonds from its ownGolconda mines in Hyderabad.14. Diamonds are said to be a womans best friend, but not any longer! Consumerpreferences have shifted to electronic good such as iPads, iPhones, Tablets and suchothers, which explains why the jewellery giants of the world advertised much less ordidnt at all in some countries, when compared to consumer electronics giants such asApple or Samsung. So we need to be much more innovative on this front.


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APPENDIX

1. Trade map: www. trademap .org/

2. Department of commerce : http://commerce.nic.in/ 3. Indias Foreign trade policy 2009 -14: http://dgft.gov.in/4. Report: Task Group Diamond Sector 11thFeb2013:

http://commerce.nic.in/publications/Report_Task_Group_Diamond_Sector_11thFeb2013.pdf?id=25

5. Bain report: The global diamond report 2013:http://www.bain.com/Images/BAIN_REPORT_The_global_diamond_report_2013.pdf

6. Money Laundering through trade in diamonds : http://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdf
http://www.trademap.org/http://www.trademap.org/http://www.trademap.org/http://www.trademap.org/http://commerce.nic.in/http://commerce.nic.in/http://commerce.nic.in/http://dgft.gov.in/http://commerce.nic.in/publications/Report_Task_Group_Diamond_Sector_11thFeb2013.pdf?id=25http://commerce.nic.in/publications/Report_Task_Group_Diamond_Sector_11thFeb2013.pdf?id=25http://www.bain.com/Images/BAIN_REPORT_The_global_diamond_report_2013.pdfhttp://www.bain.com/Images/BAIN_REPORT_The_global_diamond_report_2013.pdfhttp://www.bain.com/Images/BAIN_REPORT_The_global_diamond_report_2013.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-trade-in-diamonds.pdfhttp://www.bain.com/Images/BAIN_REPORT_The_global_diamond_report_2013.pdfhttp://www.bain.com/Images/BAIN_REPORT_The_global_diamond_report_2013.pdfhttp://commerce.nic.in/publications/Report_Task_Group_Diamond_Sector_11thFeb2013.pdf?id=25http://commerce.nic.in/publications/Report_Task_Group_Diamond_Sector_11thFeb2013.pdf?id=25http://dgft.gov.in/http://commerce.nic.in/http://www.trademap.org/

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