Policy Circular No. 05/2025, Dated 22-09-2025
1. Introduction
The Directorate General of Foreign Trade (DGFT) has released a policy circular providing much-needed clarity regarding the import of spices under the Foreign Trade Policy (FTP) 2023. This clarification directly addresses the applicability of Serial No. 1 of Appendix 4J, which lists spices such as pepper, cardamom, ginger, garlic, and several others. The directive has been issued to remove any ambiguity around pre-import conditions and the treatment of spices under the Advance Authorisation and Duty-Free Import Authorisation (DFIA) schemes.
2. Clarification on Coverage
According to the circular, all spices fall within the ambit of Serial No. 1 of Appendix 4J. This means that no matter the type of spice, the pre-import condition applies uniformly to all. The DGFT has clarified that while there is scope for sub-categorisation under this entry, such sub-categorisation is intended only to prescribe different export obligation periods for various spices under Advance Authorisations. Importantly, this categorisation does not dilute or alter the mandatory application of pre-import conditions across the entire category of spices.
3. Prohibition under DFIA Scheme
The DGFT has explicitly stated that the import of spices under the Duty-Free Import Authorisation (DFIA) scheme is not permissible. This restriction applies regardless of the end use of the imported spices. Whether the spices are intended for processing, re-export, or any other industrial application, they cannot be brought in under DFIA. The circular aims to plug any misinterpretation that may have allowed stakeholders to believe that certain end uses or product categories could qualify for DFIA benefits when it comes to spices.
4. Compliance Instructions
To ensure strict enforcement of this policy, the DGFT has directed Regional Authorities and stakeholders to fully comply with the circular. Specifically, applications involving spices as inputs must not be processed or approved under the DFIA scheme under any circumstances. This direction eliminates any possibility of discretionary approvals at the regional level and ensures consistency in the implementation of FTP 2023. The move reinforces the DGFT’s intent to maintain a uniform approach to spice imports and uphold the integrity of the trade policy framework.
5. Conclusion
In summary, the DGFT’s clarification establishes a clear position: spices listed under Serial No. 1 of Appendix 4J are subject to pre-import conditions without exception, and DFIA benefits are unavailable for their import. By issuing this circular, the DGFT has ensured greater transparency, uniformity, and compliance in trade operations involving spices. Stakeholders are expected to realign their practices accordingly, recognizing that the restriction is absolute and applicable across all categories of use.
