The Ministry of Commerce & Industry, Department of Commerce, Directorate General of Foreign Trade (DGFT) has recently announced the discontinuation of safeguard measures on the import of Isopropyl Alcohol (IPA). This significant development, outlined in Trade Notice No.02/2024-25-DGFT, has implications for the trade and industry sectors.
Detailed Analysis
1. Background: The DGFT’s decision to impose country-wise Quantitative Restrictions (QR) on the import of IPA was initially communicated through Notification No. 64/2015-20 dated 31.03.2023. These measures were in effect for a period of one year, from 01.04.2023 to 31.03.2024, subject to review by the Government.
2. Termination of Safeguard Measures: Despite the initial duration specified in the notification, inquiries from various stakeholders prompted clarification on the official termination of the safeguard measures. Trade Notice No.02/2024-25-DGFT confirms that as of 01.04.2024, the country-wise QR measures on import of IPA have been discontinued.
3. Policy Change: With the discontinuation of QR measures, import of Isopropyl Alcohol (IPA) under HS code 29051220 is now “Free” without any policy condition. This policy change is expected to streamline import procedures and facilitate smoother trade transactions for businesses involved in the IPA sector.
Conclusion
The Government of India’s decision to end safeguard measures on Isopropyl Alcohol imports marks a significant development in trade policy. This move reflects a balance between regulatory oversight and facilitating smoother trade operations. As IPA importers navigate this policy shift, they can expect greater flexibility and ease in conducting import activities. The discontinuation of QR measures underscores the Government’s commitment to fostering a conducive environment for trade and industry growth.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Dated:. 18th April, 2024
Trade Notice No.02/2024-25-DGFT | Dated : 18th April, 2024
To
1. Members of Trade and Industry
2. All EPCs / Trade and Industry Associations/Other Industry Bodies
3. All Regional Authorities (RAs) of DGFT
4. Customs Commissionerates
5. Joint Secretary (Customs), CBIC, Deptt. of Revenue
Subject: Discontinuation of Safeguard measures on import of Isopropyl alcohol (IPA), under Chapter 29 of ITC (HS) 2022, Schedule – I (Import Policy) – regarding.
Reference is invited to DGFT Notification No. 64/2015-20 dated 31.03.2023 and Public Notice No. 04/2015-20 dated 11.04.2023 whereby country-wise Quantitative Restrictions(QR) on import of IPA was notified, for a period of one year i.e. 2023-24, effective from 01.04.2023 upto 31.03.2024. subject to any review by the Government at any point of time, as deemed fit.
2. Through Para 5 of the said Notification dated 31.03.2024, it was clearly mentioned that ” the country-wise quantitative restrictions shall be effective for a period of one year only and will cease automatically on 31.03.2024. However, there are inquiries from the trade & industry and other agencies regarding official termination of the said safeguard measures on IPA.
3. Accordingly, it is informed that country-wise QR measures imposed on import of Isopropyl alcohol (IPA) under HS code 29051220, in terms of Notification No. 64/2015-20 dated 31.03.2023, have discontinued wef 01.04.2024 and import of IPA is now “Free” without any Policy Condition.
This issues with the approval of the competent authority
(Sanjay Kumar Tiwari)
E-mail: sanjay.kt@nic.in
(Issued from File No. 01/89/180/Misc-3/AM-04/PC-2[A]/E-1877)
