The DGFT vide Policy Circular No. 05/2025 dated September 22, 2025 issued a clarification Regarding Ineligibility of Spices for Import under Duty-Free Import Authorisation (DFIA).
Attention is drawn towards Para 4.26 (iv) of the Foreign Trade Policy-2023, which clearly stipulates 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 clarification has been sought regarding permissibility of importing spices (such as Pepper/Cardamom/Ginger/Garlic etc.) as ‘Flavouring Agents’ under DFIA. It is to be noted that all spices are included under Serial No 1 of Appendix 4J.
- No. 1(a) specifies export obligation period for Pepper; cardamom and chilies for Value Addition purpose like crushing / grinding / sterilisation or for manufacture of oils and oleoresins and not for simple cleaning, grading, repacking etc.,
- No. 1(b) specifies export obligation period for spices other than pepper, cardamom, and chilies for manufacture of Spice oils, Oleoresin purposes only and
- No. 1 (c) specifies export obligation period for all other categories of spices not covered under (a) & (b) above.
The entire Appendix 4J must be read in its entirety and harmoniously. Upon examination, it is clarified that all spices regardless of its intended use are included under S. No.1 of Appendix 4J and are subject to pre-import conditions. The sub-categorisation under S. No. 1 of Appendix 4J merely provides different Export Obligation Periods (EOPs) for Advance Authorisations (AAs) based on specific uses. Except for the uses specifically mentioned under sub-categories (a) and (b), all other usages of spices fall under residual sub-category (c), which carries a pre-import condition with an EOP of six months.
Consequently, since all spices fall under Appendix 4J and are subject to pre-import conditions, their import under DFIA is not permissible under any circumstances, irrespective of the intended end use.
All Regional Authorities and stakeholders are advised to take note of the above and ensure strict compliance while processing DFIA applications.
The Policy Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/clarification-Regarding-ineligibilityog-spices.pdf
