**Summary:**
Policy Circular No. 07/2023, issued by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, Government of India, on December 21, 2023, clarifies the applicability of the minimum value addition requirement for spices as outlined in Para 4.09(v) of the Foreign Trade Policy (FTP) 2023. The circular clarifies that the 25% minimum value addition condition for spices applies only when both the exported and imported items are classified under Chapter 9 of the ITC HS Code. This clarification is addressed to all Regional Authorities of DGFT, Exporters, Members of Trade, and Custom Authorities. The issuing authority is K.M. Harilal, Joint Director General of Foreign Trade. The file number for this circular is 01/94/180/021/AM24/PC4.
Key Entities Referenced
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and commerce.
Directorate General of Foreign Trade: A department under the Ministry of Commerce and Industry, responsible for implementing foreign trade policy.
New Delhi: The location of Vanijya Bhawan, the office from which the circular was issued.
Foreign Trade Policy 2023: The current foreign trade policy of India, referred to as FTP 2023.
Chapter 9 of ITC HS Code: Refers to the specific chapter within the Indian Trade Classification (Harmonized System) code that deals with spices.
All Regional Authorities of DGFT: The entities to which the policy circular is addressed.
All ExportersMembers of Trade: The entities to which the policy circular is addressed.
All Custom Authorities: The entities to which the policy circular is addressed.
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Policy - 4 Division
OK 2 of of 2k
Policy Circular No. 07/2023
Dated: 21%‘ December 2023
To ° :
All Regional Authorities of DGFT
All Exporters/Members of Trade
All Custom Authorities
Subject: Clarification on the applicability of minimum Value Addition as provided under
para 4.09 (v) of FTP 2023, in case of spices -reg.
Attention is drawn towards Para 4.09 (v) of Foreign Trade Policy 2023 which mandates
25% minimum value addition in the case of spices. It is clarified that the condition of
minimum value addition of 25% in the case of spices is applicable only where both export as
well as import items pertain to Chapter 9 of ITC HS Code.
This issues with the approval of the Competent Authority.
VN
TAR ¥\2?
(K.M. Harilal) *
Jt. Director General of Foreign Trade
(Issued from file no. 01/94/ 180/021/AM24/PC-4)