Special Notified Zone for Diamonds in Mumbai
Q. Recently a Special Notified Zone has been established. It is for- Published on 23 Sep 16a. IT hardware products
b. Petroleum products
c. Diamonds
d. Gold
ANSWER: Diamonds
- The government has set up a special notified zone (SNZ) to facilitate imports and trading of rough diamonds which will boost the gems and jewellery sector.
- The special notified zone is a trading centre where global miners can import and trade in rough diamonds without inviting income tax assessments.
- The move will help develop the country as a trading hub for rough diamonds.
- At present, diamond manufacturers of Gujarat and elsewhere travel to Dubai, Belgium or Israel to purchase raw materials, thereby ramping up cost. Though as much as 85 per cent of rough diamonds are polished in the country, only 15 per cent of them are imported directly, the rest being bought by middlemen.
- The zone in Mumbai will give the diamond industry a strong competitive advantage against other trading centres like Antwerp, Dubai, etc, by saving time as well as foreign exchange spent on travel to these trading centres or establish offices there. It will also ensure steady supply of rough diamonds in the country.
