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Dated: 23.09.2025

DGFT’S Clarification on Ineligibility of Spices for Import Under Duty-Free Import Authorisation (DFIA)

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, Government of India, has issued Policy Circular No. ​ 05/2025 dated 22nd September 2025, providing critical clarification regarding the import of spices under the Duty-Free Import Authorisation (DFIA) scheme. ​ This circular is essential for exporters, importers, and stakeholders involved in the trade of spices and related products.

Key Highlights of the Circular

1. Pre-Import Conditions for Spices ​

The circular draws attention to Para 4.26 (iv) of the Foreign Trade Policy-2023, which explicitly states that DFIAs cannot be issued for:

• Inputs subject to pre-import conditions, ​
• Inputs where Standard Input Output Norms (SION) prescribe ‘Actual User’ conditions, or ​
• Inputs listed under Appendix 4J with pre-import conditions. ​

Spices such as pepper, cardamom, ginger, garlic, and others are included under Serial No. ​ 1 of Appendix 4J, making them subject to pre-import conditions. ​

2. Export Obligation Periods (EOPs) ​

Appendix 4J categorizes spices into three sub-categories under Serial No. ​ 1:

• Sub-category (a): Spices like pepper, cardamom, and chilies for value addition purposes such as crushing, grinding, sterilization, or manufacturing oils and oleoresins. ​
• Sub-category (b): Spices other than pepper, cardamom, and chilies for manufacturing spice oils and oleoresins. ​
• Sub-category (c): All other categories of spices not covered under (a) and (b). ​

Each sub-category specifies different Export Obligation Periods (EOPs), with sub-category (c) carrying a pre-import condition and an EOP of six months. ​

3. Import Restrictions Under DFIA ​

The circular clarifies that all spices, irrespective of their intended use, fall under Appendix 4J and are subject to pre-import conditions. ​ Therefore, their import under DFIA is strictly prohibited under any circumstances. ​

Implications for Stakeholders ​

This clarification has significant implications for exporters and importers dealing with spices:

• Exporters: Must ensure compliance with the specified Export Obligation Periods and conditions outlined in Appendix 4J. ​
• Importers: Cannot use DFIA for importing spices, regardless of their intended use, and must explore alternative schemes or permissions for spice imports. ​
• Regional Authorities: Are advised to strictly adhere to these guidelines while processing DFIA applications to avoid any discrepancies. ​

Conclusion

The DGFT’s clarification reinforces the importance of adhering to the Foreign Trade Policy-2023 and Appendix 4J guidelines. Stakeholders are urged to take note of these restrictions and ensure compliance to avoid penalties or disruptions in trade operations.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: DGFT

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