DGFT issues Clarification on Spices Ineligible for Imports under DFIA [Read Circular]
It was clarified that, except for the narrowly defined purposes in sub-categories (a) and (b), all other uses of spices fall within the residual category (c), which carries a pre-import condition with a six-month EOP.
Spices - import - DGFT - Taxscan
Spices - import - DGFT - Taxscan
The Directorate General of Foreign Trade ( DGFT ), Ministry of Commerce and Industry, has issued a policy circular (No. 05/2025 dated 22 September 2025) clarifying that spices, including pepper, cardamom, ginger, garlic, and others, are ineligible for import under the Duty-Free Import Authorisation (DFIA) scheme.
The clarification responds to queries raised on whether spices could be imported as flavouring agents under DFIA.
The Para 4.26(iv) of the Foreign Trade Policy (FTP) 2023, prohibits issuance of DFIA for inputs subject to pre-import conditions, inputs requiring ‘Actual User’ compliance under Standard Input Output Norms (SION), and inputs listed under Appendix 4J.
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Since all spices fall under Serial No. 1 of Appendix 4J, they are subject to pre-import conditions. The sub-categories under Appendix 4J merely differentiate the export obligation periods (EOPs) for advance authorisations based on specific uses, such as for oils, oleoresins, or value addition processes.
The DGFT clarified that, except for the narrowly defined purposes in sub-categories (a) and (b), all other uses of spices fall within the residual category (c), which carries a pre-import condition with a six-month EOP.
The board notified that “Consequently, since all spices fall under Appendix 4J and are subject to pre-import conditions, their import under DFIA is not permissible under any circumstances, irrespective of the intended end use.”
As a result, imports of spices under DFIA are barred irrespective of the end use, including for flavouring purposes.
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