Executive Summary:
Notification No. 40/2024-25, dated November 26, 2024, amends the ITC HS 2022, Schedule I Import Policy in accordance with the Finance Act 2024. The amendments, effective immediately, involve revisions to ITC HS codes, policy conditions, section notes, and chapter notes. The updated ITC HS 2022 is available on the DGFT website.
Key Points / Main Content:
* **ITC HS Code Amendments:**
* The list of ITC HS codes and related policy conditions are inserted, deleted, amended, split, or merged under ITC HS 2022, Schedule I Import Policy.
* Specific changes to import policies for items, including deletions and additions, are listed in Annexure I. Examples include:
* Deletion of certain communion wafers, Menthol, Nmethylparaaminophenol sulphate motol, 2,5 dimethoxy aniline, Para acetyl aminophenol paracetamol, Para cresidine, Picramic acid Tgrade: Para lacetyl aminophenol paracetamol , nylon or other polyamides, Other ceramic articles, Bridges and bridgesections, Parts of structures, not elsewhere specified, Other machinery, not self propelled, For a voltage not exceeding 1,000 V, Other, Other parts of aeroplanes, helicopters or unmanned aircraft, Warships, Other : Other
* Updates to Blended Aviation turbine fuel now requires State Import as per Trading Condition 5 of Chapter 27.
* Several items have been updated to Free import policy.
* **Notes and Descriptions:**
* Amendments to section notes, chapter-wise main notes, supplementary notes, chapter headings, subheadings, and descriptions of ITC HS codes are in Annexure II.
* Revised descriptions for specific HS codes such as 8443995 are detailed.
* Supplementary notes define terms for tariff items including blended aviation turbine fuel (2710 19 33), natural menthol (2906 11 10), special finishes (5703 29 22, 5703 39 31, 5703 39 32, 5703 39 33 and 5703 39 39), and Ebicycle or battery operated pedal assisted vehicle (8711 60 80).
Impact Analysis:
Stakeholders: Importers/Exporters:
* Impact: Must comply with the updated ITC HS 2022, Schedule I Import Policy and revised conditions, which may affect import/export classifications and procedures.
* Action Required: Review Annexure I and Annexure II to identify changes affecting their specific products, update import/export documentation, and ensure compliance with the new regulations.
Stakeholders: Customs Officials:
* Impact: Required to enforce the amended ITC HS 2022, Schedule I Import Policy and ensure accurate classification and assessment of imported goods.
* Action Required: Familiarize themselves with the changes outlined in Annexure I and Annexure II, and update their procedures accordingly.
Stakeholders: DGFT (Directorate General of Foreign Trade):
* Impact: Responsible for implementing and monitoring the amended import policy.
* Action Required: Maintain the updated ITC HS 2022 on their website, address queries from stakeholders, and ensure effective implementation of the new regulations.
Key Entities Referenced
Foreign Trade Development and Regulation Act, 1992: Indian legislation that confers powers to the Central Government to formulate and implement foreign trade policy.
Foreign Trade Policy 2023: The prevailing foreign trade policy of India, providing guidelines and objectives for promoting exports and regulating imports.
ITC HS 2022, ScheduleI Import Policy: Indian Trade Classification (Harmonised System) of Import Items, 2022, Schedule I, which lists import policies for various products.
Finance Act 2024 No.2 of 2024: The Finance Act of 2024, specifically Act No. 2 of 2024, which has implications for import policies.
DGFT: Directorate General of Foreign Trade, the agency responsible for implementing foreign trade policy in India.
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India.
IS 17081:2019: Indian Standards Specification of Bureau of Indian Standards related to Blended Aviation turbine fuel
Motor Vehicles Act, 1988: Indian legislation governing motor vehicles, referenced in the context of e-bikes.
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
Notification No. 40 /2024-25
New Delhi, Dated: 26" November, 2024
Subject: Syncing of ITC (HS), 2022- Schedule-1 (Import Policy) with Finance Act 2024
(No.2 of 2024) dated 16.08.2024 -reg.
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 2023, the Central Government hereby
amends ‘ITC (HS) 2022, Schedule-I (Import Policy)’ in syne with the Finance Act 2024
(No.2 of 2024) as follows -
2 The List of ITC(HS) codes and_ related Policy Conditions
inserted/deleted/amended/split/merged under ITC(HS) 2022, Schedule-I (Import Policy) in
sync with the Finance Act, 2024 is annexed herewith (Annexure-I).
3. The amendments in the Section Notes, Chapter-wise Main Notes, Supplementary
Notes, Chapter heading, sub-headings and description of ITC (HS) codes in sync with the
Finance Act, 2024 are annexed herewith (Annexure-II).
4. The updated ITC (HS) 2022 shall be available on the website of DGFT
(https://dgft.gov.in).
Effect of this Notification: ITC (HS) 2022, (Schedule-I) Import Policy is amended in sync
with the Finance Act, 2024 (No.2 of 2024) dated 16.08.2024. This shall come into force with
immediate effect.
This issues with the approval of Minister of Commerce & Industry.
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to the Government of India
[File No.01/89/180/27/AM-21/PC-2[A]/Part-I/E-3 1913]ANNEXURE-I
Annexure referred to in DGFT Notification No.40/2024-25 dated 26-||- 2024
regarding ‘Indian Trade Classification (Harmonised System) of Import Items, 2022
[ITC (HS), 2022)’
ITC (HS) |Item Description Import Policy Condition
Code Policy
19053219 |--- Communion wafers: ---- Other DELETED
190532 _|--Waffles and wafers
19059051 |--- Communion wafers:---- Coated with|Free
chocolate or containing chocolate
19059059 |--- Communion wafers: ---- Other Free
27101933 |--- Blended Aviation turbine fuel State Import as per Policy
[Trading Condition (5) of
Enterprise |Chapter 27.
29061100 |- Cyclanic, cyclenic or cycloterpenic : -/|DELETED
+ Menthol
290611 —_|-- Menthol
29061110 |--Menthol:---Natural Menthol Free
29061190 |--Menthol:---Other Free
29222933 |-- - N-methyl-para-aminophenol DELETED
sulphate (motol), 2,5 dimethoxy
aniline, Para acetyl aminophenol
(paracetamol), Para cresidine,
Picramic acid (T-grade): ---- Para
lacetyl aminophenol (paracetamol)
29242980 |---Paracetamol Free
38180020 |--- Silicon carbide epitaxial thin film on |Free
substrate
38180030 |--- Gallium nitride epitaxial thin film on |Free
substrate
39201093 |---- Armour for ballistic protection Free
39219027 |---- Architectural membrane Free
57032920 |- Of nylon or other polyamides: --- |DELETED
100% polyamide tufted velour, cut pile
lor loop pile carpet mats with jute,
rubber latex or PU foam backing
57032921 |--- 100% polyamide tufted velour, cut |Free
pile or loop pile carpet mats :---- With
jute, rubber latex or PU foam backing
57032922 |--- 100% polyamide tufted velour, cut |Free
pile or loop pile carpet mats :---- With
ethylene vinyl acetate or vinyl acetate
ethylene or latex coating and/or
extruded
polyvinyl chloride or thermoplastic
polyolefin,
with special finishes57032929 --- 100% polyamide tufted velour, cut Free
pile or loop pile carpet mats :---- Other
57033931 --- Tufted velour, cut pile or loop pile Free
carpet mats with ethylene vinyl
acetate or vinyl acetate ethylene or
latex coating and/or extruded polyvinyl
chloride or thermoplastic polyolefin,
With special finishes:---- Of 100%
polypropylene
57033932 --- Tufted velour, cut pile or loop pile Free
carpet mats with ethylene vinyl
acetate or vinyl acetate ethylene or
latex coating and/or extruded polyvinyl
chloride or thermoplastic polyolefin,
with special finishes:---- Of 100%
polyester
57033933 --- Tufted velour, cut pile or loop pile Free
carpet mats with ethylene vinyl
acetate or vinyl acetate ethylene or
latex coating and/or extruded polyvinyl
chloride or thermoplastic polyolefin,
with special finishes:---- Of 100%
polyethylene
57033939 --- Tufted velour, cut pile or loop pile Free
carpet mats with ethylene vinyl
acetate or vinyl acetate ethylene or
latex coating and/or extruded polyvinyl
chloride or thermoplastic polyolefin,
with special finishes:---- Other
163079092 ---- Armour for ballistic protection Free
165061020 --- Headgear for ballistic protection Free
169149000 Other ceramic articles:- Other DELETED
691490 -Other:
169149010 --- Armour for ballistic protection Free
169149090 ---Other Free
173081000 Bridges and bridge-sections DELETED
730810 - Bridges and bridge-sections :
73081010 --- Portable bridge Free Steel tubes for
structural purposes
must conform to IS
1161
73081090 ---Other Free Steel tubes for
structural purposes
must conform to IS
1161
76109020 --- Parts of structures, not elsewhere DELETED
specified
76109021 --- Parts of structures, not elsewhere Free
specified :---- Portable bridge76109029 |--- Parts of structures, not elsewhere |Free
specified :---- Other
84122920 |--- Hydraulic systems for use in goods |Free
lof Chapter 89
84306900 |- Other machinery, not self- propelled :|DELETED
-- Other
843069 __|-- Other :
84306910 |--- Mine plough machinery Free
84306990 |--- Other Free
84798980 |--- Machinery for use in goods of Free
Chapter 88 or 89
85371000 |- For a voltage not exceeding 1,000 V DELETED
853710 |- For a voltage not exceeding 1,000 V
85371010 |--- For use in goods of Chapter 88 or |Free
89 or 93
85371090 |--- Other Free
87059000 |- Other DELETED
870590 _|- Other :
87059010 |--- Lorries (Trucks) fitted with bridging |Free
systems
87059090 |--- Other Free
87116080 |--- E-bicycle or battery-operated pedal |Free
lassisted vehicle
88073000 |- Other parts of aeroplanes, DELETED
helicopters or unmanned aircraft F
880730 | Other parts of aeroplanes,
helicopters or unmanned aircraft :
88073010 |--- Of aeroplanes, helicopters Free Reconditioned/
second hand parts of
goods of heading
8801 and 8802 are
also free
88073020 |--- Of unmanned aircraft Free Reconditioned/
second hand parts of
goods of heading
8801 and 8802 are
also free
89069000 | Warships DELETED
890690 |} Other:
89069010 |--- Patrol or surveillance boat, air- Restricted
cushion vehicle,
remote-operated vehicle
89069090 |--- Other Restricted
93059900 |- Other : -- Other DELETED
930599 _}-- Other :
93059910 |--- Of goods of heading 9304 Restricted
93059990 |--- Other RestrictedANNEXURE-II
Annexure referred to in DGFT Notification No.40/2024-25 dated 26: ||. 2024-
regarding ‘Indian Trade Classification (Harmonised System) of Import Items, 2022
[ITC (HS), 2022]?
a) Item Descriptions
HS Code |Revised Description
8443995 1)----Cartridges or toners, with print head assembly
84439952)----Cartridges or toners, without print head assembly|
b) Section Notes, Chapter-wise Main Notes and Supplementary Notes
Chapter|Type Note Revised Note
No.
for the purposes of tariff item 2710 19 33, the term
Blended Aviation turbine fuel” means any Aviation
turbine fuel containing by weight 70% or more of
Petroleum Oils or Oils obtained from Bituminous
Minerals, blended with Synthesized Hydrocarbons
Supplementary conforming to Indian Standards Specification of
27\|Note | Bureau of Indian Standards IS 17081:2019.’;
For the purposes of tariff item 2906 11 10, the term
Natural Menthol” means an organic compound
(C10H200) which is obtained from the distillation of
|the Japanese type oil of mint or menthol mint known
Supplementary las Mentha arvensis but does not include those made
29|Note synthetically through any chemical routes.’;
For the purposes of tariff items 5703 29 22, 5703 39
31, 5703 39 32, 5703 39 33 and 5703 39 39, the term
Special Finishes” means process of making the
product with any one or more of the following
properties such as fire resistant, fire retardant,
chemical resistant, anti-static, dust resistant, anti-
Supplementary stain, anti-microbial, anti-odor, UV stabilized, heat
57|Note resistant, etc.’;
For the purposes of tariff item 8711 60 80, the term
E-bicycle or battery operated pedal assisted vehicle”
means vehicle equipped with an auxiliary electric
motor having a thirty-minute power less than 0.25 kW
land maximum speed not exceeding 25 km/h and
conforming to the provisions of the Motor Vehicles
Supplementary Act, 1988 (59 of 1988) and the rules made
87|Note thereunder.
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