Amendment in Export Policy of Raw Human Hair reg

## Report on Amendment to Export Policy of Raw Human Hair **1. Executive Summary:** This report analyzes a notification amending the Export Policy of Raw Human Hair in India, as published by the Directorate General of Foreign Trade (DGFT) on February 10, 2025. The core purpose of this amendment is to shift the export policy of raw human hair from "Restricted" to "Prohibited," with an exception: exports are permitted freely if the Free On Board (FOB) value is US Dollar 65 or above per kilogram. The key finding is that this amendment introduces a significant restriction on the export of raw human hair, likely impacting exporters dealing with hair below the specified value threshold. **2. Introduction:** This report aims to provide a comprehensive overview of the amendment to the Export Policy of Raw Human Hair, based solely on the information provided in the DGFT notification No. 59202425, dated February 10, 2025. This analysis focuses on the changes introduced by the amendment and its potential implications. **3. Policy Overview:** * **Amendment:** This notification constitutes an amendment to the existing Export Policy of Raw Human Hair. * **Core Objective(s):** The core objective of this amendment, as inferred from the text, is to regulate the export of raw human hair. Specifically, it restricts the export of hair with an FOB value below US Dollar 65 per kilogram while allowing the free export of higher-value hair. **4. Background and Rationale:** The amendment shifts the export policy from 'Restricted' to 'Prohibited,' suggesting a possible concern regarding the uncontrolled export of raw human hair under the previous policy. This concern may stem from issues such as under-invoicing, illegal sourcing, or a desire to promote value-added processing of human hair within India. Without further context, the specific rationale remains speculative but the government may seek greater control over the quality of exported hair. **5. Key Provisions / Changes:** This section details the specific changes introduced by the amendment: * **Specific Part of the Original Policy Changed:** The amendment directly impacts the "Export Policy" column related to ITCHS code 05010010 (Human hair unworked, whether or not washed or scoured). * **New Rule/Provision:** The export policy for raw human hair is changed from "Restricted" to "Prohibited." However, an exception is introduced: "export shall be Free if FOB value is US Dollar 65 or above per Kilogram." * **Difference/Effect of the Change:** Previously, the export of raw human hair was "Restricted," implying that it required specific licenses or permissions from the DGFT. The new policy effectively bans the export of raw human hair with an FOB value below US Dollar 65 per kilogram. This likely means that exporters of lower-value raw human hair will no longer be able to export their products without further changes. The export of hair with an FOB value of US Dollar 65 or higher remains unrestricted. **6. Target Audience and Stakeholders:** Based on the provided text, the primary target audience and stakeholders directly affected by this amendment are: * **Exporters of raw human hair:** Especially those dealing with hair having an FOB value below US Dollar 65 per kilogram. * **The Directorate General of Foreign Trade (DGFT):** The agency responsible for implementing and enforcing the export policy. * **Customs authorities:** Responsible for verifying the FOB value of exported human hair. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies mentioned:** The Directorate General of Foreign Trade (DGFT) is the responsible body for implementing and enforcing this amendment. The Ministry of Commerce and Industry is also involved. * **Timelines or procedures specified:** The amendment comes into force with immediate effect, as stated in the notification. No specific procedures are detailed in the provided text, but it can be inferred that customs authorities will need to verify the FOB value of human hair shipments to determine compliance with the new policy. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these specific changes is to: * **Reduce the export of lower-value raw human hair.** * **Potentially encourage value-added processing of human hair within India.** The regulation could incentivize domestic processing to increase value before export. * **Potentially increase revenue from hair exports**, since exports of hair with FOB value more than USD 65 is free. * **Potentially face challenges in compliance and enforcement** due to possible undervaluation issues to circumvent the policy. **9. Conclusion:** The amendment to the Export Policy of Raw Human Hair represents a significant shift towards restricting the export of lower-value raw human hair. By prohibiting the export of hair with an FOB value below US Dollar 65 per kilogram, the government is likely aiming to regulate the industry, promote value-added processing, and potentially address issues like under-invoicing. Exporters of raw human hair need to carefully assess the implications of this amendment on their business operations and ensure compliance with the new regulations. The actual impact and effectiveness of this amendment will depend on its implementation and enforcement.

Key Entities Referenced