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:
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Inputs subject to pre-import conditions,
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Inputs where SION prescribes ‘Actual User’ conditions, or
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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):
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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).
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S No. (b): Spices other than pepper, cardamom, and chilies – permitted for manufacture of spice oils and oleoresins.
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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:
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All spices, regardless of their intended use, fall under Serial No. 1 of Appendix 4J.
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They are therefore subject to pre-import conditions.
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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:
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Exporters cannot rely on DFIA for importing spices, whether as flavouring agents or for other uses.
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All spice imports must comply strictly with Appendix 4J and related export obligation requirements.
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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