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## Report on Amendment to Import Policy for Items Classified Under Chapters 41 & 43 of ITC HS, 2017 **1. Executive Summary:** This report analyzes a notification issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, dated January 7, 2021. This notification amends the import policy for items classified under Chapters 41 and 43 of the ITC (HS), 2017, Schedule I (Import Policy). The core purpose of the amendment is to revise the import policy of specific animal hides and skins from "Prohibited" to "Free," subject to certain conditions related to wildlife protection and new health protocols. Key findings highlight the liberalization of import restrictions on these items while emphasizing compliance with existing wildlife protection laws and introducing new sanitary conditions. **2. Introduction:** This report provides an informative analysis of the DGFT notification dated January 7, 2021, which amends the import policy for items falling under Chapters 41 and 43 of the ITC (HS), 2017, Schedule I (Import Policy). The analysis is based solely on the information provided within the notification text. **3. Policy Overview:** * This notification constitutes an amendment to the existing Foreign Trade Policy 2015-2020, as amended from time to time, issued under Section 3 of the Foreign Trade (Development and Regulation) Act, 1992. * **Core Objective:** Based on the text, the core objective of *this amendment* is to modify the import policy for specific items classified under Chapters 41 and 43 of ITC (HS) 2017, Schedule I, Import Policy. A shift from prohibited to free import, accompanied by new sanitary conditions, is observed as part of this objective. **4. Background and Rationale:** * The amendment likely aims to ease import restrictions on specific animal hides and skins, potentially to support related industries. This is inferred from the shift of import policy from "Prohibited" to "Free" for certain items. The addition of new policy conditions related to health protocols suggest a concern about animal health and disease control, necessitating stricter sanitary import regulations. **5. Key Provisions / Changes:** This amendment specifically modifies the import policy for certain items under Chapters 41 and 43 of the ITC (HS), 2017. The key changes are as follows: * **Change 1:** The import policy for the following items is changed from "Prohibited" to "Free": * 41133000: Of reptiles * 43011000: Of mink, whole, with or without head, tail or paws * 43016000: Of fox, whole, with or without head, tail or paws * 43021100: Whole skins, with or without head, tail or paws, not assembled : Of mink * **Effect of Change 1:** This change liberalizes the import of these items, allowing them to be imported without the previous prohibition, subject to specific conditions. * **Change 2:** The import policy for item 43018000 (Other fur skins, whole, with or without head, tail or paws) remains "Free," however, the import of fur of Chinchilla is Prohibited. * **Effect of Change 2:** This reinforces the previous status of import policy for this item while specifically pointing out that the import of fur of Chinchilla is prohibited. * **Change 3:** A new policy condition is added to Chapter 41 as Policy Condition No. 4 and to Chapter 43 as Policy Condition No. 3. This condition states: "Imports are subject to compliance with the health protocol for import of hides and skin or sanitary conditions as may be prescribed from time to time by Department of Animal Husbandry and Dairying." * **Effect of Change 3:** This introduces a new requirement for importers to adhere to health protocols and sanitary conditions prescribed by the Department of Animal Husbandry and Dairying. This aims to ensure the health and safety of animal products entering the country. **6. Target Audience and Stakeholders:** Based on the text, the target audience and stakeholders directly affected by these amendments include: * Importers of animal hides and skins classified under Chapters 41 and 43 of the ITC (HS), 2017. * Industries that utilize these imported materials in their production processes (e.g., leather goods manufacturers, furriers). * The Department of Animal Husbandry and Dairying, which is responsible for prescribing and enforcing health protocols. * Wildlife authorities responsible for enforcing the Wildlife Protection Act, 1972, and CITES regulations. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry is the primary body responsible for implementing and overseeing these changes. The Department of Animal Husbandry and Dairying will also play a key role in defining and enforcing the new health protocols. * **Procedures:** Importers must comply with the Wildlife Protection Act, 1972, CITES regulations, and the new health protocols prescribed by the Department of Animal Husbandry and Dairying. The specific procedures for demonstrating compliance with the health protocols are not detailed in the provided text and would likely be specified by the Department of Animal Husbandry and Dairying separately. * No specific timelines are mentioned in the text, but the amendment is effective from the date of the notification (January 7, 2021). **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these specific changes introduced by the amendment include: * Increased import volume of the previously prohibited animal hides and skins, potentially benefiting industries reliant on these materials. * Enhanced scrutiny and control over the sanitary conditions of imported hides and skins, mitigating the risk of animal disease outbreaks. * Continued adherence to wildlife protection regulations, ensuring that imports are sourced sustainably and legally. **9. Conclusion:** The DGFT notification dated January 7, 2021, represents a significant amendment to the import policy for items classified under Chapters 41 and 43 of the ITC (HS), 2017. The shift from "Prohibited" to "Free" import status for certain items, coupled with the introduction of new health protocols, indicates a move towards trade liberalization while maintaining a focus on animal health and wildlife protection. Understanding and adhering to these changes is crucial for importers and related industries to ensure compliance and benefit from the revised regulations.

Key Entities Referenced