The Union Ministry of Commerce & Industry, through its Directorate General of Foreign Trade (DGFT), has released a notification unveiling changes to the ITC (HS) 2022, Schedule-I (Import Policy). These amendments bring the policy in line with the Finance Act 2024 (No. 2 of 2024). The updated import policy is now in effect.
These revisions are made under the authority of Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, and follow the Foreign Trade Policy (FTP) 2023. The changes involve revisions, additions, removals, and reorganization of ITC (HS) codes to ensure compatibility with the Finance Act 2024.
Updates to section notes, as well as chapter-specific and supplementary notes, were introduced. These modifications clarify definitions and set standards for items like natural menthol.
Menthol is commonly used to alleviate mild to moderate muscle and joint discomfort. It also helps reduce minor irritation and pain, suppresses the cough reflex, temporarily alleviates inflammation, and aids in the skin absorption of acne treatment. However, it may also lead to increased skin dryness and irritation.
Certain products like synthetic cyclanic menthol have been excluded from the policy. Cyclanic menthol, a cyclic alcohol with HSN code 29061100, is a terpenoid derived from essential mentha plant oils, such as peppermint and spearmint.
New additions—such as silicon carbide epitaxial thin films and gallium nitride epitaxial thin films—are now classified under the “Free” import category.
The alignment of the import policy with the Finance Act aims to streamline regulations, providing stakeholders with clear guidelines on updated classifications, compliance criteria, and import conditions. This measure furthers India’s trade goals by promoting cohesive procedures and enhancing the ease of conducting international trade.
“These adjustments underscore the government’s emphasis on promoting transparency and efficiency in trade rules while adapting to dynamic industry standards. Stakeholders are encouraged to examine the annexures in the notification for deeper insights. The revised ITC (HS) 2022 Schedule-I (Import Policy) is accessible on DGFT’s official website (https://dgft.gov.in),” stated Santosh Kumar Sarangi, Director General of Foreign Trade (DGFT) & Ex-Officio Additional Secretary, Government of India.