Law Updates

Subject

Summary: The Directorate General of Foreign Trade ( DGFT ), through Notification S.O. 429(E), has amended the import policy under ITC (HS) 2022, Schedule-I, in line with the Foreign Trade Policy (FTP) 2023. The amendment applies to Penicillin G-Potassium (ITC HS 29411010), 6-APA (29411050), and Amoxicillin Trihydrate (29411030) falling under Chapter 29. As per the revised policy, imports of these pharmaceutical intermediates are now classified as “Restricted” if the CIF value falls below prescribed thresholds Rs 2,216/kg for Penicillin G, Rs 3,405/kg for 6-APA, and Rs 2,733/kg for Amoxicillin. The restriction is effective immediately and will remain in force for one year from the date of notification. However, the DGFT has provided specific exemptions. The restriction does not apply to 100% Export Oriented Units (EOUs), SEZ units, or imports under the Advance Authorisation Scheme, subject to the condition that such imported inputs are not diverted to the Domestic Tariff Area (DTA). This move aims to protect domestic API manufacturers, address undervalued imports, and strengthen India’s pharmaceutical supply chain.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has issued a key notification permitting the export of organic sugar, subject to a defined annual ceiling. As per the latest amendment, the Government of India has permitted the export of 50,000 Metric Tonnes (MT) of organic sugar per financial year, providing long-awaited relief to exporters. This decision is a partial modification of Notification No. 36/2023 dated October 18, 2023, under which organic sugar exports were placed in the Restricted category. Under the revised policy, organic sugar falling under HS Codes 1701 14 90 and 1701 99 90 is now allowed for export with immediate effect, subject to the prescribed annual cap of 50,000 MT. Exports will be governed by the Foreign Trade Policy (FTP), 2023, ensuring regulatory compliance and transparency. Further, the Agricultural & Processed Food Products Export Development Authority (APEDA) will issue detailed modalities for implementation, including allocation and procedural requirements. This move is expected to promote organic agriculture exports, support certified exporters, and strengthen India’s presence in the global organic sugar market.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has announced a key amendment to India’s import policy regarding areca nuts. As per the Notification, roasted areca nuts classified under ITC (HS) Code 20081991 will now face a strict import restriction. Specifically, any consignment of roasted areca nuts with a Cost, Insurance, and Freight (CIF) value of less than INR 351 per kilogram is now classified as “Prohibited” for import into India. This amendment falls under the Foreign Trade (Development & Regulation) Act, 1992, and aligns with Paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2015-2020. The policy change also applies to ITC (HS) Code 08028090, updating the conditions under Schedule-I (Import Policy) of ITC (HS) 2022. The decision, approved by the Commerce and Industry Minister, aims to regulate low-cost imports that may undermine domestic producers or bypass quality standards. Importers dealing in areca nut products should carefully assess CIF values and documentation to ensure compliance with the new regulation.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has amended the import policy for Sulfadiazine API under Chapter 29 of ITC (HS), 2022, Schedule-I. The notification takes effect immediately under powers granted by the Foreign Trade (Development & Regulation) Act, 1992, and provisions of the Foreign Trade Policy (FTP) 2023. Under the new rule, imports of Sulfadiazine API with a CIF value below Rs. 1,774 per kg are now classified as ‘Restricted’ until 30th September 2026. The Modified Import Policy (MIP) applies unless specific exemptions exist. Exemptions cover Advance Authorization holders, Export Oriented Units (EOUs), and units in Special Economic Zones (SEZs), provided the API is not sold in the Domestic Tariff Area (DTA). This amendment balances domestic supply control while supporting export-focused and SEZ operations. The notification has been issued with approval from the Minister of Commerce & Industry.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has amended the Handbook of Procedures, 2023, Under the Foreign Trade Policy, 2023. The amendment now permits Regional Authorities (RAs) to issue End-User Certificates (EUCs) not only for freely importable products as well as for restricted goods, subject to particular conditions. As per the new provision, if a foreign government needs end-user certification before allowing export from their country, the RA can grant a EUC in accordance with Appendix 2Q of Appendices and Aayat Niryat Forms. Applicants are required to apply through ANF 2J with the required documents. For restricted imports, EUCs will only be granted where a valid restricted authorisation has been given by DGFT. The certificate must strictly signify the approved quantity and value mentioned in the authorization. This amendment improves regulatory clarity while permitting importers to fulfill international certification needs. It strengthens transparency, ensures compliance, and strengthens oversight in the handling of sensitive or restricted imports.

Subject

Summary: The Indian Government has issued a notification allowing exemptions on the export of specific agricultural commodities to Bhutan. This exemption, is released under the powers of section 3 rad with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and the provisions of the Foreign Trade Policy (2023), bought instant relief for cross border trade. As per the revision made to Section (I) of the ‘General Note to Export Policy’, Schedule- II (Export Policy) of ITC (HS) 2022, exports of the specified agricultural items listed in the official table will not suffer any restrictions or prohibitions. This exemption is operative immediately and will remain valid until further order are issued by the authorities.  The move is expected to support smooth trade relations with Bhutan and guarantee continuous supply of essential farm goods. By relaxing these restrictions, the government aims to s bilateral cooperation and facilitate better access to agricultural goods. Businesses involved in export to Bhutan can now proceed without the compliance hurdles that were applicable before.