Newsletter V4 (12/5/25)

1. Revised Import Policy for Roasted Areca Nuts

The DGFT has issued Notification No. 02/2025-26 dated April 2, 2025, introducing amendments to the import policy and conditions for Roasted Areca Nuts under ITC (HS) Codes 08028090 and 20081920.

Key Changes:

• Import of Areca Nut—Other (08028090) is now Prohibited, but allowed if CIF value is Rs. 351/- or above per kg.

• Imports under 100% EOUs, SEZs, and Advance Authorization will not be eligible under this relaxation.

• Entry under 20081920 (Other roasted nuts and seeds) remains “Free”, but specifically excludes Roasted Areca Nuts, which are governed under 08028090.

Key Takeaway:

Importers of Roasted Areca Nuts must ensure CIF value is Rs. 351/kg or more to qualify for free import. All others will fall under prohibited classification unless covered by exemptions.

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2. Minimum Import Price Conditions Imposed on Synthetic Knitted Fabrics

The DGFT has issued Notification No. 05/2025-26 dated April 23, 2025, amending the import policy conditions for Synthetic Knitted Fabrics under Chapter 60 of the ITC (HS), 2022.

The notification introduces a Minimum Import Price (MIP) condition for imports under the following ITC (HS) codes, applicable until March 31, 2026:

Exemptions:

The MIP condition does not apply to imports under Advance Authorisation, EOUs, or SEZs, provided inputs are used in DTA production.

Key Takeaway:

Importers must ensure compliance with the $3.5/kg CIF value threshold for these fabric types to qualify for free import. Special schemes like EOU/SEZ are exempt from the MIP requirement.

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3. Export of Essential Commodities to the Republic of Maldives Permitted Under Bilateral Agreement

DGFT has issued Notification No. 01/2025-26 dated April 1, 2025, allowing the export of specific essential commodities to the Republic of Maldives during FY 2025–26 under the bilateral trade agreement between the two governments.

Allowed Quantities for FY 2025–26:

Key Conditions:

• These exports are exempt from all existing and future prohibitions/restrictions for FY 2025–26.

• Exports must be routed only through the following six designated Customs stations:

• Mundra, Tuticorin, Nhava Sheva, ICD Tughlakabad, Kandla, Visakhapatnam.

For River Sand and Stone Aggregate, exporters must:

• Obtain environmental clearances and NOCs from respective State authorities.

• Ensure mining is not done in Coastal Regulation Zones (CRZs) and complies with CRZ norms and State laws.

Key Takeaway:

Exporters supplying these commodities to the Maldives should ensure compliance with the listed port restrictions, environmental approvals, and other applicable conditions for seamless trade execution under the bilateral agreement.

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4. Revision in Registration Fees for Coal Imports under CIMS

The Ministry of Commerce has revised the fees for obtaining automatic registration under the Coal Import Monitoring System (CIMS). The registration fees will now follow the fee structure provided in Appendix 2K.

As per DGFT Public Notice No. 2/2025-26 dated 15 April 2025, a registration fee of INR 500 will be applicable for the issuance of automatic registration numbers under various Import Monitoring Systems such as SIMS, CIMS, NFMIMS, PIMS, etc.

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5. CBIC Clarifies Customs Duty and Classification of Interactive Flat Panel Displays (IFPDs)

The CBIC has issued Circular No. 12/2025-Customs dated April 7, 2025, to clarify the classification and applicable Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPDs) and other monitors under HS Code 85285900.

Key Highlights:

• Revised BCD: IFPDs now attract 20% BCD, effective from February 2, 2025, while other monitors under the same HS code remain at 10% BCD.

• IGCR Condition Removed: Notification No. 23/2025-Customs amends S. No. 515C of Notification No. 50/2017-Customs to eliminate the IGCR condition for non-IFPD monitors.

• Technical Criteria Released: MeitY’s guidelines outline key differentiators between IFPDs and regular monitors (e.g., touch capability, screen size, power input).

• Parts Classification: Touch Glass Sheets and Touch Sensor PCBs are to be classified under HS 8529 with a 5% BCD, per S. No. 515D.

Key Takeaway:

Importers and customs officials must refer to the clarified distinctions to ensure correct classification and duty application, thereby avoiding compliance issues and misclassification penalties.

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6. Revised Drawback Rates for Select Jewellery Items under Chapter 71

The Central Government has issued Notification No. 26/2025-Customs (N.T.) dated April 17, 2025, introducing amendments to the All Industry Rate (AIR) of Duty Drawback for specific tariff items under Chapter 71 (Precious Metals & Jewellery).

Revised Drawback Rates:

• Tariff Item 711301 – Revised from ₹335.50 to ₹405.40

• Tariff Item 711302 – Revised from ₹4468.10 to ₹4950.03

• Tariff Item 711401 – Revised from ₹4468.10 to ₹4950.03

This amendment is part of ongoing updates to the principal Notification No. 77/2023-Customs (N.T.) and aims to align drawback rates with current market valuations and export dynamics.

Key Takeaway:

Exporters dealing in jewellery products under these tariff codes should update their costing and refund projections in line with the revised drawback rates to optimize their claims.