DGFT Amends Areca Nut Import Policy with New CIF Value Restrictions

DGFT Amends Areca Nut Import Policy with New CIF Value Restrictions

The Directorate General of Foreign Trade (DGFT) has issued a notification amending the import policy for Areca Nut, introducing new restrictions based on the product’s Minimum Import Price (MIP) or Cost, Insurance, and Freight (CIF) value.

Key Policy Changes

• Minimum CIF Value Restriction: The DGFT has imposed a restriction that Areca Nut can now be imported only if the Cost, Insurance, and Freight (CIF) value of the consignment is above a specified Minimum Import Price (MIP) limit.
• Policy Shift: This change essentially moves the import of Areca Nut from a fully ‘Free’ category to a ‘Free subject to conditions’ or a ‘Restricted’ category based on its price floor.

Purpose and Impact

• Protecting Domestic Farmers: The primary objective of setting a Minimum Import Price is to safeguard domestic Areca Nut growers from cheap imports. By raising the floor price, the government ensures that foreign products do not flood the Indian market and drive down local prices.
• Curbing Misinvoicing: The MIP also serves as an anti-evasion measure, helping to curb the misinvoicing of imports where traders might under-declare the value of the goods to pay less customs duty.
• Compliance Requirement: Importers must strictly adhere to this new minimum CIF value for all consignments to obtain necessary customs clearance.