DGFT Update: Import Policy Amended for Cabinet Hinges under Chapter 83 of ITC (HS).

The Directorate General of Foreign Trade (DGFT) has issued a fresh notification under S.O. (E) amending the import policy condition of select hardware items under Chapter 83 of the ITC (HS), 2022 Schedule I. This move tightens the import norms for low-value cabinet hinges, aligning with the government’s broader goal of discouraging the inflow of under-invoiced or substandard goods.

Legal Framework:

The amendment is issued under:

• Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992.
• Paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023.

Table:

Note: “CIF” refers to Cost, Insurance, and Freight value.

Effective Impact

The import of cabinet hinges under these four HS codes, if having a CIF value of less than ₹280 per kilogram, is now subject to ‘Restricted’ status. This means such imports require a valid DGFT import license, and cannot be freely brought into India.

Why the Policy Shift?

• Curtailment of under-invoicing: Prevents artificial lowering of declared values to evade duties.
• Quality control: Blocks entry of low-grade fittings, which may compromise consumer safety.
• Boost to domestic industry: Promotes indigenous production of mid-to-high-end hardware fittings.

Implications for Stakeholders

For Importers:

• Evaluate current inventory and re-negotiate supply terms with foreign vendors.
• Ensure invoices reflect CIF values at or above ₹280/kg to avoid import hurdles.
• If required, initiate application for a restricted import license via DGFT’s online platform.

For Customs Brokers & CHAs:

• Update import declarations to reflect accurate CIF values.
• Advise clients on revised HS code handling and licensing requirements.

For Domestic Manufacturers:

• Leverage the policy as a competitive advantage to increase domestic market share.
• Explore collaboration with global brands seeking high-quality sourcing within India.

Conclusion

This latest move under FTP 2023 marks a decisive step towards quality enforcement and domestic value creation. Stakeholders in the hardware and furniture industries must act swiftly to ensure continued compliance and business continuity.

Notification Reference: DGFT
Notification No.14/2025-26
26/05/2025