Law Updates

Subject

Summary: The Central Government has amended the export policy for wheat under ITC (HS) Codes 10011900 and 10019910 through Notification S.O. 1769(E), issued under the Foreign Trade (Development & Regulation) Act, 1992, and the Foreign Trade Policy, 2023. The export policy for wheat continues to remain “Prohibited.” However, a limited relaxation has been introduced. Export of up to 25 Lakh Metric Tonnes (LMT) of wheat is now permitted. The Directorate General of Foreign Trade (DGFT) will issue a separate Public Notice detailing the procedure, eligibility, and operational modalities for this permitted quantity. Importantly, the earlier condition under DGFT Notification No. 06/2015-2020 dated May 13, 2022, remains in force. Accordingly, wheat exports may also be allowed beyond the 25 LMT cap based on specific approvals granted by the Government of India to other countries, particularly to address food security requirements upon their request. This amendment reflects a calibrated approach, balancing domestic supply concerns with international obligations and strategic export commitments.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has notified an amendment to the Import Policy under Chapter 29 of ITC (HS) 2022, Schedule-I, with immediate effect. The notification has been issued by exercising powers granted under Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with the Foreign Trade Policy 2023. Through this amendment, DGFT has introduced Policy Condition No. 07 to regulate imports of Potassium Clavulanate, diluted Potassium Clavulanate, and specified intermediates based on CIF value. Imports of diluted Potassium Clavulanate with a CIF value below USD 77 per kg and Potassium Clavulanate below USD 180 per kg have been placed under the “Restricted” category until 30 November 2026. Further, imports of intermediates used in the manufacture of Clavulanic Acid or Potassium Clavulanate, priced below USD 92 per kg, are also restricted for the same period. These restrictions do not apply to Advance Authorisation holders, Export Oriented Units, or SEZ units, provided the imported goods are not supplied to the Domestic Tariff Area. Relevant ITC (HS) codes have been amended accordingly.

Subject

Summary: The Ministry of Commerce & Industry has amended Para 4.63 of the Foreign Trade Policy 2023, effective immediately. Under the reviewed provision, imports made under Diamond Imprest Authorisation (DIA) continue to be exempt from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty, wherever applicable. The key update now also exempts DIA imports from the Integrated Tax and Compensation Cess as levied under sub-sections (7) and (9) of section 3 of the Customs Tariff Act, 1975. This change clarifies that the full spectrum of statutory duties and cesses will not apply to goods imported under DIA, reducing the overall tax burden for eligible importers in the diamond sector. The amendment has been issued under the powers of Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, and paragraph 1.02 of the Foreign Trade Policy 2023, with approval from the Minister of Commerce & Industry. The practical effect is broader duty relief to support competitiveness in the import and processing of rough diamonds.

Subject

Summary:   The Directorate General of Foreign Trade (DGFT) has notified a fresh amendment to the export policy of Red Sanders (Pterocarpus santalinus) under Notification S.O. 5032(E). The notification amends policy condition 3 of Chapter 44 in Schedule-II of the ITC (HS) 2022, making the export of Red Sanders wood and roots from private or cultivated land a restricted activity. Under the revised norms, exporters must apply for a Restricted Export Authorisation, supported by a Certificate of Origin issued by the Principal Chief Conservator of Forests (PCCF). The certificate must confirm legal procurement and provide details of physical stock verification. All export authorizations will be reviewed on merit, considering conditions like quantity ceilings under CITES regulations. The Ministry of Environment, Forest and Climate Change (MoEF&CC), based on CITES recommendations, has fixed an annual export quota of 10 metric tonnes for Karnataka and 100 metric tonnes for Gujarat. These limits will apply from April 1, 2025, to March 31, 2027, for artificially propagated Red Sanders. Export of wild specimens remains prohibited.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has officially notified a new Standard Input Output Norm (SION) under the “Engineering & Electronic Items” category for mobile phone exports. Issued under File No. 01/81/171/00016/AM24-25/DES-II, this new entry, marked as SION C-2057, falls within the framework of the Foreign Trade Policy 2023. With the introduction of SION C-2057, Regional Authorities (RAs) are now empowered to issue Advance Authorisations directly, without forwarding individual applications to the Norms Committee. This move is expected to simplify the approval process, boost efficiency, and maintain regularity in export authorisation procedures. The new SION provides standardised input-output ratios for mobile phone manufacturing, ensuring clarity for exporters and reducing administrative delays. This update marks a vital step toward streamlining trade facilitation and encouraging India’s electronics export ecosystem under the current Foreign Trade Policy.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has issued a Public Notice amending Appendix 2B of the Foreign Trade Policy (FTP) 2023, which lists the agencies authorised to issue Certificates of Origin (Preferential). Exercising powers under the FTP, the DGFT has officially added the authorised agencies permitted to issue Certificates of Origin (CoO) for the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA). This amendment ensures that exporters seeking special tariff benefits under the India-EFTA TEPA can obtain CoOs from the designated agencies listed in the updated Appendix 2 B. The move aims to simplify certification processes, boost trade facilitation, and encourage smoother implementation of the newly effective India-EFTA TEPA framework. The Public Notice formally notifies and operationalises the inclusion of authorised agencies allowed to issue Preferential Certificates of Origin under the India-EFTA TEPA, ensuring clarity and compliance for stakeholders.