• Firms and companies dealing in the purchase/sale of rough or cut and polished diamonds/diamond studded jewellery with a track record of at least 3 years in import or export of diamonds/ diamond studded jewellery and having an average annual turnover of Rs. 5 crore or above during preceding three licensing years may also carry out their business through designated Diamond Dollar Accounts. The Diamond Dollar Account Scheme shall operate under the current licensing scheme of this chapter. This scheme shall be optional and those importers/exporters who wish to continue to use Rupee Accounts shall be allowed to do so under the existing policies. Dollars in such accounts available from bank finance and/or export proceeds shall be used only for (i) import/purchase of rough diamonds from overseas/local sources, (ii) purchase of cut and polished diamonds from local sources, (iii) import/purchase of gold from overseas/nominated agencies and repayment of dollar loans from the bank and (iv) transfer to the Rupee Account of the exporter. Details of this Diamond Dollar Accounts Scheme (DDAS) are given in the Handbook (Vol.1). The procedure outlined in the Handbook (Vol.1) shall also apply to diamond studded jewellery.
  
  

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 the period of 7 days and the cut and polished diamonds so supplied by non-DDA holder will also be counted towards the discharge of his export obligation and/or entitled him to replenishment licence as the case may be.