The Directorate General of Foreign Trade (DGFT) has clarified that the import of all spices, regardless of their intended use, is not permitted under the Duty-Free Import Authorisation (DFIA) scheme. This clarification is based on Paragraph 4.26 (iv) of the Foreign Trade Policy-2023, which prohibits issuing DFIAs for inputs subject to pre-import conditions. The DGFT’s circular explains that all spices are listed under Serial No. 1 of Appendix 4J, which mandates pre-import conditions. The various sub-categories within this appendix only specify different Export Obligation Periods (EOPs) for Advance Authorisations (AAs) depending on how the spices are used, such as for crushing or manufacturing oils. Despite these sub-categories, the overarching rule is that all spices fall under Appendix 4J, making them ineligible for import under DFIA. Regional Authorities and stakeholders are advised to comply with this policy, ensuring that no DFIA applications for spices are approved.
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Policy Circular No. 05/2025 – DGFT | Dated: 22nd September 2025
To
All Regional Authorities of DGFT
All Exporters/Members of Trade
All Custom Authorities
Subject: Clarification Regarding Ineligibility of Spices for Import under Duty-Free Import Authorisation (DFIA) – reg.
Attention is drawn towards Para 4.26 (iv) of the Foreign Trade Policy-2023, which clearly stipulates that DFIAs shall not be issued for:
- Inputs subject to pre-import conditions,
- Inputs where SION prescribes ‘Actual User’ conditions or
- Inputs where pre-import condition is prescribed by Appendix 4J.
2. A clarification has been sought regarding permissibility of importing spices (such as Pepper/Cardamom /Ginger/Garlic etc.) as ‘Flavouring Agents’ under DFIA. It is to be noted that all spices are included under Serial No 1 of Appendix 4J.
- S No. 1(a) specifies export obligation period for Pepper; cardamom and chilies for Value Addition purpose like crushing / grinding / sterilization or for manufacture of oils and oleoresins and not for simple cleaning, grading, repacking etc.,
- S No. 1(b) specifies export obligation period for spices other than pepper, cardamom, and chilies for manufacture of Spice oils, Oleoresin purposes only and
- No. 1 (c) specifies export obligation period for all other categories of spices not covered under (a) & (b) above.
3. The entire Appendix 4J must be read in its entirety and harmoniously. Upon examination, it is clarified that all spices regardless of its intended use are included under S.No.1 of Appendix 4J and are subject to pre-import conditions. The sub-Categorisation under S. No. 1 of Appendix 4J merely provides different Export Obligation Periods (EOPs) for Advance Authorisations (AAs) based on specific uses. Except for the uses specifically mentioned under sub-categories (a) and (b), all other usages of spices fall under residual sub-category (c), which carries a pre-import condition with an EOP of six months.
4. Consequently, since all spices fall under Appendix 4J and are subject to pre-import conditions, their import under DFIA is not permissible under any circumstances, irrespective of the intended end use.
5. All Regional Authorities and stakeholders are advised to take note of the above and ensure strict compliance while processing DFIA applications.
6. This Policy Circular is issued with the approval of the DG, DGFT.
(Saurabh Goyal)
Dy. Director General of Foreign Trade
Email: Saurabh.goyal@gov.in
(Issued from file no. 01/94/180/060/AM26/PC-4)
