**Policy Summary: Amendment in Import Policy Condition under Chapter 39 of ITC HS, 2022, Schedule I Import Policy**
**Date:** September 14, 2022
**Issuing Authority:** Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
**Subject:** Amendment to the import policy for Polyethylene Terephthalate (PET) flakes and chips/bottle waste/scrap under Chapter 39 of the Indian Trade Classification (ITC) Harmonized System (HS), 2022, Schedule I (Import Policy).
**Key Changes:**
* The import of PET flakes, chips, bottle waste, and scrap made from used PET bottles, previously prohibited as per O.M. No. 234/2009-HSMD dated August 30, 2016, and O.M. No. 2366/2019-HSMD dated October 3, 2019, of the Ministry of Environment, Forest and Climate Change (MoEFCC), is now permitted under specific conditions.
* Imports are subject to obtaining a No Objection Certificate (NOC) from MoEFCC and authorization from DGFT, in accordance with O.M. No. 2366/2019-HSMD dated August 23, 2022.
**Eligibility and Conditions for Import of PET Flakes:**
1. **Domestic Waste Usage:** Units are eligible for import only if they have utilized domestic waste to at least 70% of their capacity in the preceding year (e.g., production of 2021-22 to be considered for 2022-23 permissions).
2. **Import Restriction:** Imports for the year 2022-23 are restricted to 20% of the production in 2021-22, and thereafter, to 15% of the actual capacity utilized in the preceding year.
3. **Additional Import for Exports:** An additional import of up to 10% may be considered against exports of the products.
4. **Production Requirement:** Units must have at least one year of production to be eligible for import.
**Effect of the Notification:**
The notification permits the import of PET flakes subject to obtaining an NOC from MoEFCC and authorization from DGFT.
**Contact Information:**
Santosh Kumar Sarangi
Director General of Foreign Trade
Ex officio Addl. Secretary to the Gol
Email: dgft@nic.in
F. No. 01/89/180/M-32/AM-03/PC-2[AE1554]
Key Entities Referenced
Foreign Trade Development and Regulation Act, 1992: An Indian act that empowers the Central Government to make provisions for the development and regulation of foreign trade.
Foreign Trade Policy FTP, 20152020: The Foreign Trade Policy of India for the period 2015-2020, outlining guidelines and objectives for promoting exports and regulating imports.
ITC HS, 2022, Schedule I Import Policy: Indian Trade Classification (Harmonized System) which is based on Harmonized System of Coding. This is related to import policy.
Ministry of Commerce and Industry: A ministry in the Government of India responsible for the development and regulation of industries and internal trade.
Directorate General of Foreign Trade: An agency of the Ministry of Commerce and Industry, Government of India, responsible for implementing the Foreign Trade Policy.
PET Flakes: Recycled Polyethylene Terephthalate flakes, a form of recycled plastic, that is subject to import policy changes described in the notification.
Ministry of Environment, Forest and Climate Change: A ministry in the Government of India responsible for environmental protection and conservation.
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex officio Additional Secretary to the Government of India.
[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
Vanijya Bhavan
Notification No. 32 /2015-2020
New Delhi, Dated: 14" September, 2022
Subject: Amendment in Import Policy Condition under Chapter 39 of ITC (HS), 2022,
Schedule — I (Import Policy).
S.O. (E): In exercise of powers conferred by Section 3 read with Section 5 of the Foreign
Trade (Development and Regulation) Act, 1992 (as amended from time to time) read with
paragraph 1.02 and 2.01 of the Foreign Trade Policy (FTP), 2015-2020, the Central
Government hereby amends the Import Policy and revises the Condition No.2 of Chapter 39
of ITC (HS), 2022, Schedule — I (Import Policy) as under:
IHS Code [Item Existing (Existing Policy Revised {Revised Policy
Description Import {Condition Import Condition
Policy Policy
39076110 --- PET flakelProhibited [The import of PET\Prohibited [The import of PET]
39076930 |(chip) bottle bottle waste/scrap|
jwaste/scrap/ PET Imade from used PET
flakes made from used bottles etc is|
IPET bottles ete is| “Prohibited” as per
Prohibited” as per IOM No. 23-4/2009-
IOM No. 23-4/2009- IHSMD dated 30-08-
IHSMD dated 30-08- 2016 and O.M.
2016 and O.M, INo.23/66/2019-HSM
INo.23/66/2019-HSM dated 03/10/2019 off
dated 03/10/2019 off Ministry off
Ministry of Environment, Forest}
Environment, Forest] land Climate Change}
land Climate Change. (MoEF&CC)
However, import
lof PET Flakes _ has|
lbeen permitted under
lan authorisation from|
IDGFT and subject to}
INOC from]
IMoEF&CC, in|
accordance with thein
1O.M. No.
23/66/2019-HSMD
dated 23.08.2022,
subject to following!
conditions :i. A unit should be
eligible for
import only if it
has used
domestic waste
to the extent at
least 70% of the
capacity in the
previous year,
(e.g. production!
of 2021-22 to be
considered fo
2022-23
permissions).
ii. The imports for
the year 2022-23)
should be
restricted to 20%
of the production]
in the year 2021+
22 and thereafter,
15% of the actual]
capacity utilized
in the preceding
year.
iii, An additional
import up to 10%
may be
considered
against — exports|
of the products.
iv. Units would be}
eligible fo
import after at
least one year off
production.
2 Effect of the Notification:
Import of PET Flakes has been permitted subject to NOC from MoEF&CC and an
authorisation from DGFT.
This issues with the approval of Minister of Commerce and Industry.
x' vqr
ww
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex- officio Addl. Secretary to the Gol
E-mail: dgft@nic.in
(Issued from F. No. 01/89/180/M-32/AM-03/PC-2 (A)/E-1554)