DGFT Clarifies Duty-Free Import Authorization for Spices

26-Sep-2025 04:37 PM

New Delhi. Earlier this week, the Directorate General of Foreign Trade (DGFT) issued an important clarification regarding the import of spices from abroad under the Duty-Free Import Authorization (DFIA) scheme.

The DGFT circular stated that several spices are not eligible for import under the DFIA scheme. These include spices such as black pepper, cardamom, ginger (dry ginger), and garlic.

According to the clarification provided in the circular, all spices, regardless of their intended use (even as flavoring agents), will be considered included under Schedule 1 of Appendix 4.

Additionally, any item (spices) listed in Appendix 4J may be imported subject to conditions. Duty-free import authorization cannot be issued for inputs with pre-import conditions.

Similarly, in accordance with paragraph 4.26(4) of the Foreign Trade Policy 2023, authorization will not be issued where actual user conditions are applicable or prescribed and standard input-output regulations are also in effect.

This can be understood as the spices categorized in serial number 1 of Appendix 4J have been divided into sub-categories with different export obligation periods for advance authorization based on their specific use.

Generally, duty-free import of spices is allowed on the condition that importers either manufacture value-added products from the imported spices and export them within a specified period or manufacture spice oils and oleoresins from them.

Serial number 1(a) prescribes export obligation periods for black pepper, cardamom, and red pepper when used for value addition or in the manufacture of spice oils and oleoresins.

Similarly, in No. 1 (B), the time limit for export obligation of spices other than black pepper, cardamom and red chilli has been fixed, whereas the spices which are not included in category A and B of No. 1 have been included in No. 1 (C), but the conditions for this will also be the same as those fixed for spices of A and B