**Policy Summary: Amendment to Import Policy Condition for Urea (Exim Code 31021000)**
**Date:** November 3, 2021
**Issuing Authority:** Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
**Subject:** Amendment in the import policy condition of Urea, EXIM Code 31021000, under Chapter 31 of the ITC (HS) 2017, Schedule I – Import Policy.
**Notification No.:** 40/2015-2020
**Summary:**
This notification amends the import policy condition for Urea (Exim Code 31021000) with immediate effect. The key changes are as follows:
* **Expanded Importers:** In addition to Rashtriya Chemicals & Fertilizers Limited (RCF), import of Urea is now also permitted through National Fertilizers Limited (NFL) and Indian Potash Limited (IPL), subject to Para 2.20 of the Foreign Trade Policy (2015-2020).
* **State Trading Enterprise (STE) Designation:** NFL and IPL are designated as State Trading Enterprises (STE) for the import of Urea on Government account.
* **IPL Import Timeline:** IPL is authorized to import Urea on Government account until March 31, 2022.
* **Denotification of MMTC and STC:** MMTC and STC are no longer designated as STEs for the import of Urea.
* **Technical Grade Urea (TGU):** Import of Technical Grade Urea (TGU) meant for non-agricultural industrial use, specifically NPKI manufacturing, remains free.
**Effect of the Notification:** This amendment expands the number of entities authorized to import Urea, designating NFL and IPL as STEs, while removing MMTC and STC from this designation.
**Authority:** This notification is issued with the approval of the Minister of Commerce and Industry, and in exercise of powers conferred by Section 3 and Section 5 of the Foreign Trade (Development and Regulation) Act, 1992.
**Contact:** Amit Yadav, Director General of Foreign Trade & Ex-officio Addl. Secretary to Gol, Email: dgft@nic.in, F.No. 01/89/180/102/AM02/PC-2[A]/Part-II/E-1713.
Key Entities Referenced
Urea: A nitrogen-containing chemical compound used worldwide as a fertilizer and an important raw material for the chemical industry.
Foreign Trade Policy, 2015-2020: A policy document outlining guidelines and regulations related to India's foreign trade.
Rashtriya Chemicals Fertilizers Limited (RCF): An Indian public sector undertaking, and a major producer of fertilizers and chemicals.
National Fertilizers Limited (NFL): An Indian state-owned corporation that manufactures chemical fertilizers and industrial chemicals.
Indian Potash Limited (IPL): An Indian company involved in the import, handling, promotion and marketing of fertilizers.
FTDR Act, 1992: Foreign Trade (Development and Regulation) Act, 1992. Indian legislation governing foreign trade.
Directorate General of Foreign Trade: The agency of the Ministry of Commerce and Industry, Government of India responsible for implementing the Foreign Trade Policy.
New Delhi: The capital of India, where the Ministry of Commerce and Industry and the Directorate General of Foreign Trade are located.
To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-Section (ii)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Notification No. 40 /2015-2020
New Delhi, Dated: 3'’ November 2021
Subject: Amendment in import policy condition of Urea [Exim Code 31021000] in the
ITC (HS) 2017, Schedule — I (Import Policy).
S.O. (E): In exercise of powers conferred by Section 3 and Section 5 of FT (D&R) Act,
1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended
from time to time, the Central Government hereby amends the policy condition of Urea
[EXIM code 31021000] of Chapter 31 of ITC (HS), 2017, Schedule — I (Import Policy), with
immediate effect, as under :
Exim Item olicy Existing Policy Condition |Revised Policy Condition
Code Description
31021000 |Urea, State Import allowed through|Import allowed through RCF and NFL
whether or|Irading |STC, MMTC and RCF subject to Para 2.20 of Foreign Trade
not in|Enterprise |subject to Para 2.20 offPolicy, 2015-2020. In addition import
aqueous Foreign Trade Policy,Jof Urea is also allowed through IPL for
solution 2015-2020. However,a period upto 31.3.2022.
import of Technical Grade
Urea (TGU) meant for non-+| However, import of Technical Grade
agricultural purpose/Urea (TGU) meant for non-agricultural
industrial use/ NPKipurpose/ industrial use/ NPKI
Manufacturing shall _be\Manufacturing shall be “Free”.
Free.
2s Effect of the Notification:
In addition to Rashtriya Chemicals & Fertilizers Limited (RCF), Import of Urea is
allowed through National Fertilizers Limited (NFL) and Indian Potash Limited (IPL) subject
to Para 2.20 of Foreign Trade Policy, 2015-2020. The NFL and IPL are designated as STE
for import of Urea on Government account. However, IPL is allowed to import Urea on
Government account till 31.03.2022 only. Henceforth, the MMTC and STC are de-notified
as STE for import of Urea.
This issues with the appppr oval of Minister of Commerc e && IInndduussttrryy. sagt VeneD
(Amit OY4\a\u\ pian
Director General of Foreign Trade &
Ex-officio Addl. Secretary to Gol
Email: dgft@nic.in
(F.No. 01/89/180/102/AM-02/PC-2(A)Part-II/E-171
3)