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.

[Shilpi Jain]

Here the restriction is price based. If the price exceeds the stipulated price, these goods can be imported and are not restricted

[MANOHARAN ARUMUGAM]

Dear Professionals,

Thanks for your reply.  Now it has been clarified.

AI Summary

Import of Potassium Clavulanate: CIF below set thresholds triggers restriction; above thresholds not restricted but standard compliance applies. DGFT imposed a price based import restriction until 30.11.2026: diluted Potassium Clavulanate (< USD 77/kg CIF) and Potassium Clavulanate (< USD 180/kg CIF) are restricted. Exemptions apply for Advance Holders, EOUs and SEZ units provided imports are not sold into the Domestic Tariff Area. The restriction is triggered only when CIF is below the stated thresholds; imports above those CIF levels are not restricted under this provision but remain subject to standard customs and regulatory compliance.