DGFT Amends Export Policy Conditions for Agarwood Chips, Powder, and Oil [Read Notification]

DGFT increased the annual export quotas for Agarwood Chips, Powder, and Agar Oil, and enforced stricter compliance with CITES and state-specific regulations
DGFT - Export Policy for Agarwood Chips - Agarwood powder export condition - TAXSCAN

The Ministry of Commerce & Industry, through the Directorate General of Foreign Trade ( DGFT ), issued Notification No. 52/2024-25 on January 20, 2025, significantly revising export quotas for Agarwood (Aquilaria Malaccensis) Chips and Powder and Agar Oil obtained from artificially propagated sources.
 
Under the revised policy, the annual export limit for Agarwood Chips and Powder has been increased from 25,000 kg to 151,080 kg, while the quota for Agar Oil has risen from 1,500 kg to 7,050 kg.

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1. Agarwood Chips and Powder

ITC(HS) Code: 12119080 – Agarwood (Aquilaria (Malaccensis) (Including chips and Powder)
Export Policy: Restricted.
Existing Policy: Annual Quota – 25,000 kg per annum.

Exports are permitted only if:

  • Origin is certified by an authorized Forest Department officer.
  • Stocks are verified for legal sourcing.
  • Photographic evidence is certified by relevant authorities.
  • CITES regulations for harvesting and export are followed.

Policy Conditions (New): Export of Agarwood Chips and Powder is allowed under the following conditions:

  1. Certificate of Origin: This is issued after a physical inspection by a Forest Department officer authorized by the concerned State Government. The certificate must detail the date of procurement, the quantity from legal sources, and the confirmation that the plantation is registered with the State Government.
  2. Coloured Photograph: Products must be photographed and certified by a designated Forest Department officer.
  3. Undertaking: Exporters must confirm that their harvesting practices comply with CITES (Convention on International Trade in Endangered Species) guidelines.
  4. Quota Allocation: Exports are allowed as per the annual state-specific limits. For example, Assam is allotted 119,400 kg, while smaller allocations are made for states like Tripura and Nagaland.

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2. Agar Oil

ITC(HS) Code: 33012937 – Agar Oil extracted from Agarwood (Aquilaria Malaccensis)

Export Policy: Restricted.

Existing Policy: Annual Quota – 1,500 kg per annum.

Exports are permitted only if:

  • Origin is certified by an authorized Forest Department officer.
  • Stocks are verified to confirm legal sourcing.
  • Photographic evidence of products is certified by relevant authorities.
  • CITES regulations for harvesting and export are strictly followed.

Policy Conditions (New): Export of Agar Oil is allowed under the following conditions:

  1. Certificate of Origin: Must be issued after a physical inspection by a Forest Department officer authorized by the concerned State Government. The certificate should detail:
  • The date of procurement.
  • The quantity is procured from legal sources.
  • Confirmation that the plantation is registered with the State Government.

2. Coloured Photograph: The product (Agar Oil) must be photographed and certified by a designated Forest Department officer.

3. Undertaking: Exporters must submit a written undertaking confirming compliance with CITES (Convention on International Trade in Endangered Species) guidelines for harvesting.

4. Quota Allocation: Exports are allowed within the state-specific annual limits

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State-Specific Annual Limits

State-wise Annual Export Limits for Agarwood (Aquilaria Malaccensis) obtained from artificially propagated sources:
 

StateAgarwood chips/powder/saw dust (non-exhausted) (in kgs)Agar Oil (in kgs)
Assam1,19,4005,560
Tripura22,5001,047
Manipur4,000200
Nagaland3,400180
Karnataka1,20035
Meghalaya2009
Kerala804
Others*30015
Total1,51,080 kgs7,050 kgs
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