Law Updates

Subject

Summary: The Central Government has introduced a partial amendment to the import policy regulating synthetic knitted fabrics under Chapter 60 of the ITC (HS), 2022. Exercising powers under Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992, and in alignment with paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023, the amendment amends Notification No. 05/2025-26 dated 23.04.2025. The import policy for ITC (HS) Code 60053600 has been revised to maintain its status as “Restricted,” subject to a Minimum Import Price (MIP) of USD 3.5 per kg, except for fabrics ranging between 28 to 48 GSM. All other HS Codes under the previous notification stay unchanged. In addition, Advance Authorisation holders, Export Oriented Units (EOUs), and SEZ units will remain exempt from the MIP condition, provided that imported inputs are not sold in the Domestic Tariff Area (DTA). This step focuses on balancing import regulation with support for domestic textile manufacturing.

Subject

Summary: The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has amended ANF-2N for the export of Pharma Grade Sugar. As per the Public Notice dated 22nd July 2025, the 'Shipment Details' and 'Foreign Buyer/Consignee Details' columns in the application form are now optional instead of mandatory. Exporters can mention 'any buyer/any port of discharge' while applying. These details can be updated later once the export order is confirmed, but before the shipment. This move simplifies the export authorization process, offering flexibility to exporters dealing with Pharma Grade Sugar. The amendment is made under the powers of Paragraphs 1.03 and 2.04 of the Foreign Trade Policy 2023.

Subject

Summary: The Director General of Foreign Trade, exercising powers under paragraph 1.03 of the Foreign Trade Policy-2023 (as amended), has implemented three new standard Input Output Norms (SIONs).  The new SIONs, A-3687, A-3688, and A-3689, are introduced under the 'Chemical and Allied Products' category, Product Code 'A'. The update aims to simplify trade practices and facilitate smooth operations in the chemical and related products sector. The revised standards are now in effect to increase efficiency and support the movement of goods under these product categories.

Subject

Summary: On June 16, 2025, the Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry, issued a corrigendum to clarify the countervailing duty (CVD) on imports of effect pearlescent pigments and mica pearlescent pigments. This follows the DGTR’s final findings, published on March 28, 2025. The corrigendum outlines how CVD should be calculated for different grades and uses of pearlescent pigments, ensuring proper duty collection in line with India's trade regulations. For natural-grade effect pearlescent or mica pearlescent pigments used in industrial applications, the CVD will be the difference between the duty amount and the applicable anti-dumping duty under Notification No. 13/2023-Cus (ADD) dated November 22, 2023. In cases where these pigments are used for cosmetic applications, the CVD will be equal to the full amount since no anti-dumping duty applies. However, for automotive applications of natural-grade pigments, no countervailing duty will be charged, providing relief for manufacturers in the automotive sector. For synthetic-grade effect pearlescent pigments, the CVD will be the same as the amount specified, as no anti-dumping duty is applicable. This clarification is crucial for businesses involved in the import of pearlescent pigments, as it ensures a clear understanding of the duty structure for various types and applications. The corrigendum also highlights that the customs classification of these products is only indicative and does not define their exact scope under the current duty rules.

Subject

Summary: The Ministry of Commerce and Industry issued a corrigendum on June 16, 2025, correcting an earlier order from May 5, 2025. The correction changes the reference from the standard “IS 5485:1997” to “IS 5484:1997” in the official government document published in the Gazette of India. This update ensures accurate compliance with industry standards under the Department for Promotion of Industry and Internal Trade. Businesses and stakeholders should note this correction for regulatory clarity. The correction supports better industry regulation and promotes proper adherence to Indian Standards (IS), enhancing transparency and legal compliance in trade and commerce.