DGFT Clarifies Spices Not Eligible for Import Under Duty-Free Import Authorisation (DFIA) Scheme [Read Circular]

The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India, issued Policy Circular No. 05/2025 dated September 22, 2025, clarifying that all types of spices are not eligible for import under the Duty-Free Import Authorisation (DFIA) scheme.

The circular was addressed to all Regional Authorities of DGFT, exporters, members of trade, and custom authorities to remove confusion about whether certain spices such as pepper, cardamom, ginger, and garlic could be imported under DFIA as “flavouring agents.”

Clarification on Spices

DGFT clarified that all spices are covered under Serial No. 1 of Appendix 4J of the Handbook of Procedures (HBP), which makes them subject to pre-import conditions.

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Appendix 4J divides spices into three sub-categories based on their export obligation periods (EOPs):

1. S.No. 1(a): For pepper, cardamom, and chillies used for value addition (like crushing, grinding, sterilisation, or oil and oleoresin extraction).
2. S.No. 1(b): For other spices used in the manufacture of spice oils and oleoresins.
3. S.No. 1(c): For all remaining categories of spices not included above.

DGFT explained that all these sub-categories fall under Appendix 4J, which carries a pre-import condition, meaning imports must happen before exports are made.

The DGFT categorically stated that since all spices fall under Appendix 4J and are subject to pre-import conditions, they are not eligible for import under the DFIA scheme regardless of their intended use. So, even if exporters claim to use spices as “flavouring agents” or for value-added products, their import through DFIA is prohibited.

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