Directorate General of Foreign Trade (DGFT) has issued Policy Circular No. 04/2023-24 on 31st August 2023, providing clarification regarding the applicability of safeguard measures on the import of Isopropyl Alcohol (IPA).
Detailed Subheading Wise Analysis:
1. Background and Context of the Policy Circular
- Explanation of the issuance of Notification No. 64/2015-20 dated 31st March 2023 by the DGFT.
- Mention of safeguard measures in the form of Country-wise Quantitative Restrictions (QR) on Isopropyl Alcohol (IPA) imports for the specified year.
2. Industry Representation and Seeking Clarification
- Highlighting the receipt of various representations from trade and industry, as well as Export Promotion Councils.
- Mention of the queries and concerns raised by stakeholders regarding the applicability of safeguard measures on imports by SEZ units.
3. Examination and Consultation with DGTR
- Explanation of the steps taken to address the concerns raised.
- Mention of consultation with the Directorate General of Trade Remedies (DGTR).
4. Applicability of Measures to SEZ Units
- Detailed clarification on the matter:
- DGTR investigation based on imports into the Domestic Tariff Area (DTA).
- Explicit statement that import of IPA by SEZ units is not covered by the specified Notification.
- Exemption of SEZ units from country-wise QR, subject to certain conditions.
5. Conditions for SEZ Units’ Exemption
- Explanation of the conditions for exemption:
- No sale of Isopropyl Alcohol (HS code 29051220) in the Domestic Tariff Area by SEZ units.
6. Official Contact Details for Further Queries
- Sharing contact details of the responsible authority for any further queries or clarifications.
Conclusion: The DGFT’s Policy Circular No. 04/2023-24 provides a crucial clarification on the applicability of safeguard measures on Isopropyl Alcohol (IPA) imports by SEZ units. By explicitly exempting SEZ units from the country-wise QR, provided certain conditions are met, the circular aims to provide clarity to trade and industry stakeholders. This step aligns with the objective of safeguarding domestic industry interests while also acknowledging the unique status of SEZ units. Stakeholders are encouraged to adhere to the provided conditions to ensure compliance with the circular’s provisions.
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, Akbar Road, New Delhi-110011
Policy Circular No. 04/2023-24-DGFT | Dated: 31.08.2023
To
1. All Customs Authorities
2. FIEO/All Export Promotion Councils
3. All Importers /Members of Trade and Industry
Subject: Safeguard Quantitative Restrictions (QR) imposed on import of Isopropyl Alcohol (IPA) — Clarification regarding applicability of QR on imports by SEZ units wrt Notification No. 64/2015-20 dated 31.03.2023 -regarding.
Pursuant to issuance of Notification No. 64/2015-20 dated 31.03.2023 by the DGFT imposing safeguard measures in the form of Country-wise Quantitative Restrictions (QR) on import of Isopropyl alcohol (HS code 29051220) for the year 2023-24, various representations have been received in the DGFT from trade & industry and Export Promotion Councils seeking clarification on the applicability of the said measures on imports by the SEZ units.
2. Accordingly, the matter has been examined in consultation with the DGTR and it is noted that the investigation made by the DGTR regarding increase in volume of imports and consequent injury to the domestic industry was largely based on the trend in imports into the Domestic Tariff Area (DTA).
3. Therefore, it is hereby clarified that import of Isopropyl alcohol (HS code 29051220) by SEZ units is out of purview of the said Notification No. 64/2015-20 dated 31.03.2023 and import of IPA in SEZ shall not be subjected to country-wise QR, provided no DTA sale of Isopropyl Alcohol (HS code 29051220) is allowed by SEZ units.
This issues with the approval of DGFT.
(Sanjay Kumar Tiwari)
Dy. Director General of Foreign Trade
E-mail: sanjay.kt@nic.in
Tele No. 011-23038771
(Issued from F. No. 01/89/180/Misc-3/AM-04/PC-2[A]/E-1877)
