DGFT Amends Import Policy for Potassium Clavulanate and Related Compounds

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has issued Notification No. 50/2025-26 dated December 18, 2025, introducing significant amendments to the import policy for specific items under Chapter 29 of the ITC (HS) 2022, Schedule-I (Import Policy). These changes, effective immediately, aim to regulate the import of diluted Potassium Clavulanate, Potassium Clavulanate (KGA), and certain intermediates used in their production.

Key Highlights of the Notification:

Restricted Imports of Potassium Clavulanate and Intermediates:
- Diluted Potassium Clavulanate with a CIF value of less than USD 77 per KG is now classified as ‘Restricted’ for import until November 30, 2026.
- Potassium Clavulanate (KGA) with a CIF value of less than USD 180 per KG is also ‘Restricted’ until November 30, 2026.
- Specific intermediates used in the manufacture of Clavulanic Acid or Potassium Clavulanate, with a CIF value below USD 92 per KG, are restricted until November 30, 2026. These intermediates include:
  - Tertiary Butylamine Salt – Potassium Clavulanate
  - Tertiary Octylamine Salt – Potassium Clavulanate
  - Tertiary Butylamine Salt – Intermediate of Clavulanic Acid
  - Tertiary Octylamine Salt – Intermediate of Clavulanic Acid
Exemptions for Certain Importers:
- The restrictions mentioned above do not apply to imports made by Advance Authorisation holders, Export Oriented Units (EOUs), and units in Special Economic Zones (SEZs). However, these imported inputs must not be sold in the Domestic Tariff Area (DTA).
Amendments to ITC (HS) Codes:
- The notification also updates the import policy conditions for several ITC (HS) codes related to Potassium compounds, carboxylic acids, Rifampicin, Cefadroxil, and other chemical compounds. These items are now subject to Policy Condition No. 08 of Chapter 29, which imposes restrictions based on CIF value thresholds.
Impact of the Notification:
- The amendments aim to regulate the import of specific chemical compounds to ensure compliance with quality standards and promote domestic manufacturing. By restricting imports below certain CIF value thresholds, the government seeks to encourage the use of high-quality inputs and support local industries.

Implications for Importers:

Importers dealing with diluted Potassium Clavulanate, Potassium Clavulanate (KGA), and related intermediates must adhere to the revised policy conditions. Those holding Advance Authorisation, operating as EOUs, or functioning within SEZs can continue importing these items, provided they are not sold in the DTA.

Conclusion:

This notification reflects the government’s commitment to ensuring the quality of imported goods and fostering domestic production capabilities. Importers are advised to review the updated policy conditions under Chapter 29 of the ITC (HS) 2022 and ensure compliance to avoid disruptions in their operations.

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Source: DGFT

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