Surat, September 30, 2026: The Surat Diamond Bourse has received an important boost to its trading infrastructure after the Central Board of Indirect Taxes and Customs approved a new Special Notified Zone (SNZ) at the Surat International Diatrade Centre inside the bourse complex at Khajod.

The facility is designed to let eligible foreign diamond mining companies bring rough diamonds into India for viewing, tendering, auction and sale to Indian manufacturers and traders under Customs supervision. Unsold lots can be re-exported under the prescribed procedure.

The move effectively shifts the existing SNZ operated by the Surat International Diatrade Centre from Gujarat Hira Bourse in Ichhapore to the Surat Diamond Bourse at Dream City. The change was approved through CBIC Circular No. 44/2026-Customs dated September 28, according to reporting by DeshGujarat and subsequent local coverage.

What is a Special Notified Zone for diamonds?

An SNZ is a Customs-supervised facility that allows eligible foreign mining companies to bring rough diamonds into India so potential buyers can inspect them and participate in tenders, auctions or negotiated sales without using the ordinary commercial-import process for every unsold lot.

The model matters in a diamond centre such as Surat because manufacturers want direct access to rough supply, while overseas mining companies need a controlled mechanism for showing goods to multiple Indian buyers.

When a lot is sold, Customs procedures, assessment and applicable duties are completed before the goods leave the notified area. When a lot is not sold, it can be repacked and re-exported according to the rules.

Where will the new Surat Diamond Bourse SNZ operate?

The approved facility is at the Surat International Diatrade Centre (SIDC), 2nd Floor, Tower-B, Surat Diamond Bourse, Dream City, Khajod.

The Times of India reported that the relocation had been formally approved after a proposal from the Gems and Jewellery Export Promotion Council through SIDC and a recommendation from Customs authorities. Read the Times of India report on the SNZ shift.

Operations are not simply automatic because a circular has been issued. The facility has to satisfy the required Customs conditions and receive written authorisation from the jurisdictional Commissioner or Principal Commissioner before operations begin.

Why the relocation matters for Surat

Surat is already one of the world’s most important centres for cutting and polishing diamonds. Its long-term challenge has been converting manufacturing strength into a larger share of international trading activity.

The Surat Diamond Bourse was built partly around that ambition: bringing manufacturers, traders, service providers and global business infrastructure into one large commercial ecosystem.

A functioning SNZ inside the bourse can make that proposition more practical. Instead of rough-diamond viewing taking place at a separate facility elsewhere in the city, eligible international suppliers and Indian buyers can conduct the process inside the same complex that is being positioned as a major diamond-trading hub.

How the rough-diamond process is expected to work

The CBIC framework lays out a controlled process rather than a conventional open warehouse.

  1. Eligible foreign mining companies bring rough diamonds to India. The goods enter through the prescribed air-cargo route and documentation requirements apply.
  2. Customs examines and places the goods under controlled custody. The SNZ operates as a supervised area rather than a normal private trading office.
  3. Indian buyers can view lots. The goods can be shown for tendering, auction or permitted sale processes.
  4. Sold lots go through assessment and clearance. Applicable Customs requirements must be completed before removal.
  5. Unsold lots are re-exported. The framework sets timelines for repacking and export documentation.

Published summaries of Circular 44/2026 state that unsold lots should be repacked within the prescribed period and shipping documentation for re-export must be filed within the specified time limit. Businesses participating in the SNZ should rely on the actual Customs circular and operational authorisation rather than media summaries when handling shipments.

Why direct access to miners can matter for manufacturers

Rough-diamond procurement is a major cost and supply-chain issue for polishing units. Access to more suppliers in a transparent viewing and auction environment can improve market discovery and give manufacturers more opportunities to compare lots.

That does not guarantee lower prices. Global rough-diamond prices depend on mine output, demand for polished stones, inventory, financing conditions and the strategies of large producers. But a local trading facility can reduce some of the friction involved in connecting overseas supply with Indian buyers.

The move is also about making SDB more active

Surat Diamond Bourse is a huge piece of infrastructure, with thousands of offices and extensive business facilities. The bigger economic question has always been how quickly trading activity can scale inside it.

The bourse’s own website describes a complex of roughly 6.7 million square feet with more than 4,700 diamond merchant offices. You can see the facility overview on the official Surat Diamond Bourse website.

Moving an SNZ into the building does not fill thousands of offices overnight. What it does is add a trade function that gives suppliers and buyers another reason to use the complex for transactions rather than only as office real estate.

What happens to the older Ichhapore SNZ?

The new arrangement replaces the SNZ at Gujarat Hira Bourse in Ichhapore. The Customs framework provides for de-notification of the older facility after the new one becomes operational, with the transition intended to avoid disruption.

That means businesses should pay attention to the actual operational date, not only the date of the circular. Until the new SNZ receives the necessary authorisation and begins functioning, transition arrangements remain relevant.

What the SNZ does not mean

There are a few easy misconceptions around the announcement.

  • It is not a general duty-free shopping zone. The facility is specifically structured for permitted rough-diamond trade under Customs control.
  • It does not mean every foreign seller can simply bring diamonds into an office. Eligibility, documentation and Customs procedures apply.
  • It does not guarantee immediate trading volume. Actual activity depends on miners, buyers, market conditions and operational readiness.
  • It is not the same thing as the entire Surat Diamond Bourse becoming a customs-free zone. The notified area and procedures are specific.

Why this is timely for Surat’s diamond sector

Surat’s diamond industry has been navigating a complicated global market shaped by changes in natural-diamond demand, the rapid growth of lab-grown diamonds, financing pressures and competition from international trading centres.

A stronger local rough-diamond trading mechanism does not solve all of those challenges. But it can improve the city’s infrastructure for the natural-diamond supply chain and help connect manufacturing capacity with international suppliers.

Recent reporting has also highlighted competition from places such as Dubai in emerging segments of the diamond trade. In that environment, operational facilities — Customs zones, international logistics, trading rooms, finance and connectivity — matter as much as the physical size of a business complex.

What this could mean for local businesses

For large manufacturers, the most obvious benefit is easier participation in rough-diamond viewing and tender processes inside the SDB ecosystem.

For service businesses, increased trading activity can create secondary demand for logistics, security, valuation, insurance, compliance, hospitality and professional services.

For smaller manufacturers, the effect may be more indirect. They may not buy directly from overseas miners in every case, but deeper local trading activity can influence the network of dealers and suppliers from which smaller units source goods.

Surat infrastructure remains part of the bigger story

Economic growth around large projects depends on city infrastructure working reliably. BCC has recently covered local concerns including residents’ demands for transparency around Surat creek and flood-management documents and our report on flooding and infrastructure stress in parts of the Diamond City.

The success of a global trading district ultimately depends on more than the building itself: roads, drainage, airport connectivity, public transport, digital infrastructure and the surrounding business ecosystem all influence whether companies choose to operate there daily.

What to watch next

The most important next milestones are operational:

  • written Customs authorisation for the new SNZ to begin operations;
  • completion of security and custodial arrangements;
  • the first foreign mining companies using the facility;
  • frequency and size of rough-diamond tenders or auctions;
  • the formal closure or de-notification of the older Ichhapore facility;
  • whether the move leads to measurably higher trading activity inside SDB.

Frequently asked questions

What has CBIC approved at Surat Diamond Bourse?

CBIC has approved a Special Notified Zone at the Surat International Diatrade Centre on the second floor of Tower-B at Surat Diamond Bourse.

What is the purpose of the SNZ?

It allows eligible foreign mining companies to bring rough diamonds for viewing, tendering, auction and sale to Indian manufacturers and traders under Customs supervision, with unsold lots eligible for re-export under prescribed rules.

Where was the earlier Surat SNZ located?

The existing facility operated at Gujarat Hira Bourse in Ichhapore. The new approval provides for shifting the function to Surat Diamond Bourse at Khajod.

Can the new facility begin immediately?

The approved premises must meet the required conditions and receive written authorisation from the appropriate Customs authority before SNZ operations commence.

Does the announcement involve lab-grown diamonds?

The SNZ approval discussed here concerns the controlled import, viewing and sale of rough diamonds under the Customs framework described in Circular No. 44/2026.

Sources

Featured image: representative diamond photograph from Unsplash.