The Directorate General of Foreign Trade (DGFT) has issued a clear clarification regarding the import of spices under the Duty-Free Import Authorisation (DFIA) scheme. This update holds significant importance for exporters and stakeholders dealing in spice-related products.
Background:
Para 4.26 (iv) of the Foreign Trade Policy (FTP) 2023 specifies that DFIAs shall not be issued for:
Inputs subject to pre-import conditions,
Inputs where SION prescribes ‘Actual User’ conditions, or
Inputs where pre-import condition is prescribed by Appendix 4J.
A query was raised on whether spices such as pepper, cardamom, ginger, garlic, etc., can be permitted as “flavouring agents” under the DFIA scheme.
Appendix 4J and Classification of Spices:
All spices are covered under Serial No. 1 of Appendix 4J, with sub-categories based on their specific usage and export obligation periods (EOPs):
S No. (a): Pepper, cardamom, and chilies – for value addition activities such as crushing, grinding, sterilisation, or manufacturing of oils and oleoresins (not for simple cleaning, grading, or repacking).
S No. (b): Spices other than pepper, cardamom, and chilies – permitted for manufacture of spice oils and oleoresins.
S No. (c): All other categories of spices not covered under (a) and (b).
The sub-categorisation provides different EOPs for Advance Authorisations (AAs), but all categories are subject to pre-import conditions.
DGFT Clarification:
Upon examination, DGFT has clarified:
All spices, regardless of their intended use, fall under Serial No. 1 of Appendix 4J.
They are therefore subject to pre-import conditions.
Since DFIA does not permit import of items with pre-import restrictions, spices cannot be imported under DFIA in any circumstance.
Implication for Exporters:
This clarification removes any ambiguity and makes it clear that:
Exporters cannot rely on DFIA for importing spices, whether as flavouring agents or for other uses.
All spice imports must comply strictly with Appendix 4J and related export obligation requirements.
Regional Authorities (RAs) will not process DFIA applications for spices.
Conclusion:
The DGFT has reinforced compliance with FTP provisions by harmonising the interpretation of Appendix 4J. For stakeholders in the spice sector, this means re-aligning procurement and authorisation strategies, ensuring that pre-import conditions are duly followed under Advance Authorisations, but not under DFIA.
Notification Reference: DGFT
Policy Circular No. 05/2025
22 /09/2025