DGFT notifies Revised Import Quantities for RPC & CPC in Aluminium Industry from FY 2024-25

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued a critical notification, No. 68/2023-DGFT, dated 07th March 2024, that brings significant amendments to the import policy conditions for Raw Petroleum Coke (RPC) and Calcined Petroleum Coke (CPC) under Chapter 27 of Schedule I (Import Policy) of ITC (HS) 2022. This move, effective from the fiscal year 2024-25, aims to adjust the import quantities for these crucial inputs in the aluminium manufacturing process, reflecting the evolving needs of the industry and environmental considerations.

Understanding the Amendments

Previously, the aluminium industry was allowed to import a total of 0.5 million metric tonnes (MT) per annum of CPC, and CPC manufacturing units were permitted to import raw pet coke not exceeding 1.4 million MTs per annum. The revised policy condition now permits a total import of 1.9 million MTs of RPC for manufacturing CPC and 0.5 million MTs of CPC for the Aluminium Industry for the fiscal year 2024-25. Notably, from 2025-26 onwards, the permissible import quantity of CPC for the Aluminium Industry will increase to 0.8 million MTs, while the import limit for RPC remains unchanged.

Key Conditions and Restrictions

The DGFT’s notification stipulates several conditions and restrictions to govern the importation of RPC and CPC, aiming to ensure these materials are used responsibly and in line with the country’s environmental and industrial policies:

• Feedstock Usage Only: Import of RPC & CPC shall be permitted solely as feedstock/raw material. Under no circumstances shall these be used as fuel, emphasizing the environmental implications and the specific industrial utility of these substances.
• Domestic Needs: The importation is tailored exclusively to cater to the domestic needs of the aluminium industry, adhering to processes permitted under relevant regulations/statutes. This condition is crucial for balancing domestic supply and demand, thereby supporting the Indian aluminium industry’s sustainability.
• Actual User Basis: Import of RPC by calciners and CPC by the Aluminium Industry shall be on an Actual User basis, prohibiting transfer to other units, including SEZ units. Additionally, export of CPC by calciners and Anode by the Aluminium Industry is not allowed, ensuring that the imported materials benefit the domestic market.
• Processing Capacity Record: The RPC/CPC processing capacity as of the CAQM Order dated 14.02.2024 shall be recorded for any pro-rata allocations, aligning import allowances with actual processing capabilities.
• Compliance with CAQM Order: All other conditions mentioned in the Commission for Air Quality Management in NCR & Adjoining Areas Order must be complied with, underlining the environmental considerations in the policy amendment.

Impact on the Aluminium Industry

The revised import quantities and conditions for RPC and CPC represent a significant policy shift, reflecting the government’s commitment to environmental sustainability, regulatory compliance, and supporting the domestic aluminium industry’s growth. By adjusting the import limits and imposing strict conditions on the use and transfer of these materials, the DGFT aims to ensure that the aluminium industry’s expansion does not come at the expense of environmental degradation or resource mismanagement.

This policy amendment is expected to impact various stakeholders in the aluminium industry, from manufacturers and calciners to environmental regulators and policy analysts. The increased import limits from FY 2025-26 onwards indicate a recognition of the growing demand within the aluminium industry, potentially driving growth and innovation in the sector. However, the emphasis on actual user basis, environmental compliance, and the prohibition of fuel use underscores the importance of sustainable practices in industrial expansion.

Conclusion

The DGFT’s notification on revised import quantities for RPC and CPC marks a critical step in aligning India’s foreign trade policy with its industrial and environmental objectives. As the aluminium industry continues to evolve, these amendments provide a framework for sustainable growth, ensuring that imports meet domestic needs while adhering to strict environmental and usage criteria. Stakeholders in the aluminium sector must closely monitor these changes and adapt their operations to comply with the new policy conditions, positioning themselves for success in a rapidly changing industrial landscape.

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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi

Notification No. 68/2023-DGFT | Dated: 07^th March, 2024

Subject: Amendment in Import Policy condition for Raw Pet Coke and Calcined Pet Coke under Chapter 27 of Schedule—I (Import Policy) of ITC (HS) 2022

S.O. 1129(E).: In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development & Regulation) Act, 1992. read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby notifies the following amendments under Chapter 27 of the ITC (HS), 2022, Schedule-I (Import Policy) as under:

1. The Import Policy Condition no.06 (b) of Chapter 27 of Schedule—I (Import Policy) of ITC (HS) 2022 shall be amended as under:

Effect of the notification: The permissible Import Quantities of RPC for manufacturing of CPC and CPC for Aluminium Industry from FY 2024-25 onwards has been revised in line with the recommendations of CAQM issued vide Order dated 14 02.2024.

This is issued with the approval of Minister of Commerce & Industry.

(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to Govt. of India
Email: dgft@nic.in

(Issued from File No. 01/89/180/22/AM-23/PC-2(A)/E-38642)