Amendment in import policy under Chapter 29

[MANOHARAN ARUMUGAM]

Dear Experts,

Recently, DGFT has issued a Notification No.50/2025-26 dt.18.12.2025 whereby puting a value cap of CIF price for import of following items.

(i) Diluted Potassium Clavulanate having a cif value of less than USD.77 per kg is 'RESTRICTED TILL 30.11.2026.

(ii) Potassium Clavulanate having a cif value of less than USD.180 per kg is 'RESTRICTED TILL 30.11.2026.

In the same notification, it has been clarified that above provisions shall not apply to imports made by Advance Holders, EOUs and units in the SEZs, subject to the condition that the imported inputs are not sold into the Domestic Tariff Area (DTA).

As per the Notification, the understanding is if the import price is less than the stipulated value (i.e.USD.77 & USD.180/kg respectively) then the import is restricted upto 30.11.2026.  

My question is if the import price of Diluted Potassium Clavulanate & Potassium Clavulanate is more than the price stipulated in the notification, will the import be Restricted?  The Notification is silent in this regard.

Can I get experts opinion in this regard?

A.MANOHARAN

[Ryan Vaz]

No: The import will not be automatically restricted merely because the import CIF price is higher than the price in the notification.
The restriction is triggered only if the import price is less than the stipulated minimum threshold specified in the notification. In other words:

• If your CIF value is above the stipulated figure, then the item is not treated as “Restricted” under this policy condition and therefore can be imported without a DGFT restricted licence (though regular customs and other compliance still apply).

• The Notification was silent on prices above the threshold because the policy condition is framed only to restrict imports below those CIF values.

AI Summary

CIF-based import restrictions on potassium clavulanate and diluted forms: below USD 77/180 per kg made 'Restricted' until 30.11.2026 DGFT Notification No. 50/2025-26 dated 18.12.2025 amends Chapter 29 import policy by imposing a CIF-based restriction until 30.11.2026 on (i) diluted potassium clavulanate imported at a CIF value below USD 77/kg and (ii) potassium clavulanate imported at a CIF value below USD 180/kg, thereby requiring compliance with the 'Restricted' import condition only when the declared CIF value falls below the specified threshold. The notification further exempts imports by Advance Authorisation holders, EOUs and SEZ units, subject to a prohibition on sale of the imported inputs into the DTA, thereby allowing such imports notwithstanding the price-based restriction if the DTA sale condition is met.