DGFT Updates Spice Value Addition Requirement: 25% Minimum Requirement for Chapter 9 Spices [Read Circular]
Amendment to FTP/HBP requires 25% value addition for Chapter 9 spices, 15% for others, in line with Chapter 4 provisions.
DGFT – DGFT Updates Spice Value – Spice Value Addition Requirement – Directorate General of Foreign Trade – DGFT Updates – Tax news – Taxscan
DGFT – DGFT Updates Spice Value – Spice Value Addition Requirement – Directorate General of Foreign Trade – DGFT Updates – Tax news – Taxscan
The Directorate General of Foreign Trade ( DGFT ) has issued an amendment through Public Notice No. 08/2024-25 dated June 03, 2024, impacting the spice trade governed by Chapter 9 of the Indian Trade Clarification ( ITC ) Harmonized System (HS) Code under the Foreign Trade Policy ( FTP ) and Handbook of Procedures ( HBP ) 2023.
This amendment, affecting Appendix 6B of the FTP/HBP 2023, introduced changes in the value addition requirements for spices. Specifically, it mandates a minimum value addition of 25% only when both the export and import items fall under Chapter 9 of the ITC(HS) Code. However, for all other cases, the required value addition is reduced to 15%. This adjustment aims to align these provisions with those outlined in Chapter 4 of the FTP/HBP.
| Existing Paragraph | Amended Paragraph |
| (10) SPICES (COVERED BY CHAPTER 9 OF THE ITC(HS) CLASSIFICATIONS EXPORT & IMPORT ITEMS: OF (ii) A minimum value addition of 25% shall have to be fulfilled. | (10) SPICES (COVERED BY CHAPTER 9 OF THE ITC(HS) CLASSIFICATIONS EXPORT & IMPORT ITEMS: OF (ii) A minimum value addition of 25% shall have to be fulfilled in the case of spices only where both export as well as import items pertain to Chapter 9 of the ITC(HS) Code. (iii) In all other cases the value addition will be 15% |
To Read the full text of the Order CLICK HERE
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