On December 24, 2024, the Directorate General of Foreign Trade (DGFT) issued an important public notice updating the policy for the import of Menthol under the Advance Authorization (AA) and Duty-Free Import Authorization (DFIA) schemes.
This decision brings significant changes for businesses involved in the import of Menthol, providing them with clarity on the procedures and requirements under the current Foreign Trade Policy (FTP).
What’s New in the Policy?
The key development announced in the notice is the reinstatement of Standard Input-Output Norms (SION)/Adhoc norms for Menthol, which were temporarily suspended earlier in 2023. With the new update, the norms for Menthol importation are now back in place, providing businesses with a clearer framework to navigate the import process under the Advance Authorization and DFIA schemes.
Menthol is now categorized under the following ITC(HS) codes:
- 2906 11 10: Natural Menthol
- 2906 11 90: Other Menthol
These codes will determine the classification of Menthol imports, and businesses can use them for the issuance of Advance Authorization or DFIA.
How Does This Impact Businesses?
For businesses engaged in the import of Menthol, the reinstatement of these norms offers several benefits:
Advance Authorization/DFIA Availability: The reinstated norms mean that businesses can now apply for Advance Authorization and DFIA for Menthol imports. This will enable companies to import Menthol without paying certain duties, provided they meet the conditions of these schemes.
Clearer Framework for Importation: The public notice has provided businesses with the necessary clarity on the procedures to follow when importing Menthol. Authorities can now issue and fix Advance Authorization or DFIA based on the newly reinstated norms.
Encouraging Trade and Exports: By reinstating the norms under the Advance Authorization/DFIA schemes, the government aims to facilitate the smooth movement of raw materials like Menthol, which are essential for certain industries, such as cosmetics and pharmaceuticals. This ensures that businesses can continue their operations efficiently, with access to raw materials at lower costs
Application Procedure: The Regional Authorities (RAs) and the Norms Committees (NCs) will now process requests for Advance Authorization/DFIA based on the re-instated norms under the specified ITC(HS) codes.
Effective Date : December 24, 2024
