TaxTMI 
TaxTMI 
Export of MICA from India Introduction.
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....xport of MICA from India Introduction.<br>By: - YAGAY andSUN<br>Customs - Import - Export - SEZ<br>Dated:- 25-5-2026<br>Introduction Mica is a naturally occurring non-metallic mineral possessing exceptional insulating, heat-resistant, dielectric, lightweight, and flexible properties. Owing to its unique physical and chemical characteristics, mica is extensively utilized across a broad spectrum of industrial applications. India has historically been recognized as one of the world's leading producers and exporters of high-quality mica and mica-based products. The Indian mica industry plays a significant role in the country's mineral exports, particularly in the supply of crude mica, mica powder, mica flakes, fabricated mica products, and value-added mica articles to international markets. Indian mica enjoys substantial demand in sectors such as electrical and electronics, cosmetics, paints and coatings, plastics, rubber, automotive, aerospace, and construction industries. The export of mica from India is governed by the applicable provisions of the Foreign Trade Policy (FTP), Customs Act, Mines and Minerals (Development and Regulation) Act, 1957, GST laws, and relate....
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....d regulations issued by the Government of India. Export Policy of MICA from India Legal and Regulatory Framework The export of mica from India is governed by the following principal legislations and regulatory frameworks: • Foreign Trade (Development and Regulation) Act, 1992; • Foreign Trade Policy (FTP) issued by the Government of India; • Indian Trade Classification (Harmonised System) [ITC (HS)]; • Customs Act, 1962; • Mines and Minerals (Development and Regulation) Act, 1957; • Goods and Services Tax (GST) laws; and • Environmental and mining regulations issued by the Central and State Governments. The Directorate General of Foreign Trade (DGFT), functioning under the Ministry of Commerce and Industry, is the nodal authority responsible for administration of export policies and trade regulations in India. Export Policy Classification of MICA Under the prevailing ITC (HS) Classification and Foreign Trade Policy framework, mica and most mica products are classified as: "FREE" for Export This implies that mica can generally be exported without obtaining any specific ....
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....export licence or prior authorization from the DGFT, subject to compliance with applicable laws, procedures, and documentation requirements. Applicable ITC (HS) / HSN Codes Product Description ITC (HS) / HSN Code Export Policy Status Crude Mica and Mica Splittings 252510 Free Mica Powder 252520 Free Mica Waste and Scrap 252530 Free Worked Mica and Articles of Mica 6814 Free The export policy status may be amended by notifications issued periodically by DGFT and exporters are advised to verify the latest Schedule II of ITC (HS) before shipment. Meaning of "Free" Export Policy Under India's Foreign Trade Policy, goods categorized as "Free" may be exported without any quantitative restrictions or licensing requirements, unless otherwise regulated under any other law in force. Accordingly, exporters of mica are generally not required to obtain: • Export licence; • Restricted export authorization; or • Special quota allocation. However, exports remain subject to: • Customs compliance; • Mining and royalty regulations; • Environmental laws; ....
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.... • GST provisions; and • International trade compliance norms. Restrictions and Compliance Risks Although mica is presently categorized as "Free" for export, exporters must note that: • DGFT may amend export policy conditions through notifications; • Misdeclaration of HSN codes may attract penalties; • Illegal mining and unethical sourcing can lead to shipment rejection; • Environmental non-compliance may affect international market access; and • Customs authorities may detain goods for valuation or compliance verification. International Compliance Requirements Many importing countries require mica exporters to comply with: • REACH Regulations (European Union); • ESG and sustainability standards; • Responsible Minerals Initiative (RMI) protocols; • Labour compliance certifications; and • Conflict mineral and ethical sourcing declarations. These requirements are particularly significant for exports destined for: • European Union; • United States; • Japan; and • Global ....
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....cosmetics and electronics manufacturers. Types of MICA Commercially, mica is classified into several categories based on mineral composition, colour, thermal resistance, and industrial applicability. 1. Muscovite Mica Muscovite mica is transparent and possesses superior electrical insulating properties and high thermal resistance. It is the most widely used commercial variety of mica. Principal Uses: • Electrical insulation • Electronics • Capacitors • Industrial heating systems 2. Phlogopite Mica Phlogopite mica is characterized by excellent heat resistance and mechanical strength at elevated temperatures. Principal Uses: • Aerospace components • Industrial furnaces • Thermal insulation systems 3. Biotite Mica Biotite mica contains higher iron content and is generally dark in colour. Its commercial applications are comparatively limited. Principal Uses: • Limited industrial and geological applications 4. Lepidolite Mica Lepidolite mica contains lithium and is utilized in specialized industrial applications. Principal Uses: â....
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....¢ Battery manufacturing • Specialty chemicals • Lithium extraction 5. Ruby Mica Ruby mica is regarded as a premium-grade Indian mica variety widely used in export-oriented applications. Principal Uses: • Electrical insulation • Fabricated mica products 6. Green Mica Green mica is primarily utilized in decorative and specialty applications. Principal Uses: • Decorative coatings • Architectural finishes Commercial Forms of Mica Mica is exported and traded in multiple processed and semi-processed forms, including: • Crude Mica • Sheet Mica • Mica Splittings • Mica Powder • Mica Flakes • Fabricated Mica • Mica Paper • Calcined Mica • Mica Scrap and Waste Uses of MICA and Industries Served Mica is an industrial mineral of strategic importance owing to its extensive commercial and technological applications. 1. Electrical and Electronics Industry Mica possesses superior dielectric strength and insulation properties. Applications: • Electrical ....
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....insulation materials • Capacitors • Transformers • Circuit boards • Heating equipment 2. Paints and Coatings Industry Applications: • Pearlescent pigments • Anti-corrosive coatings • Weather-resistant paints • Decorative coatings 3. Cosmetics Industry Mica is extensively used in cosmetic formulations for shimmer and reflective effects. Applications: • Lipsticks • Eye shadows • Foundations • Nail polishes • Highlighters 4. Plastics and Rubber Industry Applications: • Reinforcement fillers • Dimensional stability enhancement • Thermal resistance improvement 5. Construction Industry Applications: • Decorative wall coatings • Waterproofing compounds • Cement and plaster additives 6. Automotive Industry Applications: • Brake linings • Heat-resistant components • Insulation materials • Specialty coatings 7. Oil and Gas Industry Applications: •....
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.... Drilling mud additives • Prevention of fluid loss during drilling operations 8. Aerospace and Defence Industry Applications: • Heat-resistant insulation • Specialized industrial components Producing States in India India possesses significant mica reserves distributed across several mineral-rich states. State Major Producing Areas Jharkhand Koderma, Giridih Bihar Nawada, Jamui Rajasthan Bhilwara, Ajmer, Tonk Andhra Pradesh Nellore Telangana Khammam Madhya Pradesh Selected mineral belts Leading Producing State Jharkhand is historically recognized as the "Mica Capital of India" due to its extensive mica reserves and mining activities. HSN Codes Applicable to Mica The Harmonized System of Nomenclature (HSN) codes applicable to mica and mica products are as follows: Product Description HSN Code Crude Mica and Mica Splittings 252510 Mica Powder 252520 Mica Waste and Scrap 252530 Worked Mica and Articles of Mica 6814 Mica Blocks 25251010 Mica Powder (Processed) 25252000 The principal export classification falls under Chapter 25 and Chapter....
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.... 68 of the Customs Tariff. Royalty on Mica Mining Royalty on mica mining in India is regulated under: • The Mines and Minerals (Development and Regulation) Act, 1957; • Mineral concession rules; and • Notifications issued by the Ministry of Mines, Government of India. Royalty is generally levied: • On a per tonne basis; or • On an ad valorem basis linked to the average sale price of the mineral. The approximate royalty incidence ranges between 4% and 5% of the average sale price, subject to periodic revision by the Central Government. In addition to royalty, mining lease holders may also be liable to pay: • District Mineral Foundation (DMF) contribution; • National Mineral Exploration Trust (NMET) contribution; • Dead rent; • Surface rent; and • Other statutory levies. Customs Duty on Export of Mica At present, export of mica from India is generally not subject to export customs duty. Nature of Levy Applicability Export Duty Nil Export Cess Generally Nil Import Duty on Inputs Applicable, if imported inputs are....
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.... used Exporters may avail applicable export incentive and remission schemes in accordance with prevailing Foreign Trade Policy provisions. GST Rate Applicable to Mica Product Category GST Rate Crude Mica 5% Mica Powder 5% Mica Waste and Scrap 5% Worked Mica Articles 18% Under the Goods and Services Tax framework, exports are treated as "Zero Rated Supplies" pursuant to Section 16 of the Integrated Goods and Services Tax Act, 2017. Major Destination Countries for Indian Mica Exports India exports mica and mica-based products to multiple international markets. Country Major End-Use Applications China Industrial and electrical applications United States of America Cosmetics and electronics Germany Automotive and coatings Japan Electronics manufacturing South Korea Industrial applications United Arab Emirates Re-export and trading hub Netherlands Paints and cosmetics United Kingdom Specialty coatings France Cosmetics Italy Decorative and industrial coatings Export Performance During the Last Three Years The export performance of mica from India has demonstrated stable gr....
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....owth, particularly in value-added mica products. Financial Year Estimated Export Value 2022-23 USD 110-120 Million 2023-24 USD 125-135 Million 2024-25 USD 135-150 Million Key Growth Drivers • Increasing demand from the cosmetics industry; • Rising consumption of pearlescent pigments; • Expansion of electronics and EV industries; and • Growing preference for processed and value-added mica products. Export Promotion Councils and Regulatory Authorities 1. Chemicals and Allied Products Export Promotion Council (CAPEXIL) CAPEXIL functions under the Ministry of Commerce and Industry and promotes exports of minerals and allied products, including mica. Official Website: https://www.capexil.org 2. Federation of Indian Export Organisations (FIEO) FIEO serves as the apex body representing Indian exporters and provides assistance relating to export promotion and international trade facilitation. Official Website: https://www.fieo.org 3. Directorate General of Foreign Trade (DGFT) DGFT administers India's Foreign Trade Policy and export-import regulations. Official Websi....
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....te: https://www.dgft.gov.in 4. Ministry of Mines, Government of India The Ministry of Mines regulates mineral development and mining policies in India. Official Website: https://mines.gov.in State and Central Government Support, Initiatives and Subsidies Central Government Support 1. RoDTEP Scheme The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme provides remission of embedded taxes and duties incurred during the manufacturing and export process. 2. Export Credit Support Exporters are eligible for: • Pre-shipment finance; and • Post-shipment finance through authorized banking institutions. 3. Interest Equalization Scheme Eligible exporters may avail concessional interest rates on export credit facilities. 4. MSME Support Schemes Support includes: • Technology upgradation assistance; • Cluster development programmes; • Market access initiatives; and • Export capacity enhancement. 5. District Mineral Foundation (DMF) DMF initiatives support: • Infrastructure development; • Welfare measures; and • Communi....
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....ty development in mining regions. State Government Support States such as Jharkhand, Rajasthan, and Andhra Pradesh provide: • Mining lease facilitation; • Industrial infrastructure support; • Power tariff subsidies; • Land allocation incentives; and • Logistics and export-oriented industrial assistance. Export Promotion Benefits 1. GST Refund / LUT Facility Exports qualify as zero-rated supplies under GST laws. Exporters may: • Export under Letter of Undertaking (LUT) without payment of IGST; or • Export upon payment of IGST and subsequently claim refund. Benefits include: • Refund of input tax credit; • Improved working capital liquidity; and • Reduced tax cascading. 2. RoDTEP Benefits The RoDTEP Scheme provides remission of embedded taxes and duties not otherwise refunded under existing mechanisms. Benefits are issued in the form of transferable electronic duty credit scrips. 3. Duty Drawback Duty drawback may be claimed in respect of: • Customs duties paid on imported inputs used in export production; and ....
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.... • Eligible notified duties under applicable drawback schedules. 4. MDA and MAI Assistance Market Development Assistance (MDA) Market Access Initiative (MAI) These schemes provide assistance for: • Participation in international trade fairs; • Buyer-seller meets; • Export promotion campaigns; • Brand building; and • Overseas market development activities. 5. ECGC Insurance Protection The Export Credit Guarantee Corporation of India (ECGC) provides export credit risk insurance services. Benefits include: • Protection against buyer default; • Political risk coverage; • Export credit insurance support; and • Enhanced bankability of export transactions. Official Website: https://www.ecgc.in Environmental Issues and Challenges Despite its economic significance, mica mining and processing are associated with several environmental and social concerns. 1. Illegal and Unregulated Mining Unauthorized mining operations remain a challenge in certain mica-producing regions. 2. Child Labour Concerns Global buyers increasingly r....
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....equire compliance with ethical sourcing and labour standards. 3. Deforestation Mining activities may adversely impact forest ecosystems and biodiversity. 4. Land Degradation Open-cast mining can result in soil erosion and ecological imbalance. 5. Dust and Air Pollution Mica processing generates fine particulate matter affecting environmental and occupational health. 6. Water Pollution Improper disposal of mining waste may contaminate nearby water resources. Remedial Measures 1. Sustainable Mining Practices Implementation of: • Scientific mining methods; • Controlled excavation; • Environmental management plans; and • Proper mine closure mechanisms. 2. Ethical and Traceable Supply Chains Adoption of: • ESG compliance frameworks; • Traceability systems; and • Independent third-party audits. 3. Formalization of Small-Scale Mining Encouraging: • Regulatory compliance; • Licensing and registration; and • Worker safety standards. 4. Environmental Rehabilitation Measures Measures include: • Affores....
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....tation programmes; • Land reclamation; • Water conservation; and • Biodiversity restoration. 5. Technology Upgradation Promotion of: • Mechanized processing; • Dust suppression systems; and • Cleaner production technologies. 6. Skill Development and Capacity Building Training initiatives relating to: • Safe mining practices; • Mineral processing techniques; and • Export compliance and sustainability standards. Conclusion India continues to occupy a significant position in the global mica industry owing to its abundant mineral reserves, established processing capabilities, skilled workforce, and growing export infrastructure. Mica remains a strategically important mineral with extensive applications across electronics, cosmetics, paints, automotive, construction, aerospace, and industrial manufacturing sectors. The long-term sustainability and competitiveness of India's mica export sector will depend upon: • Promotion of value-added exports; • Adoption of ethical sourcing practices; • Environmental sustai....
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....nability and responsible mining; • Technological modernization; and • Compliance with international quality and ESG standards. With continued policy support from the Central and State Governments, effective export promotion measures, and enhanced environmental governance, India possesses substantial potential to strengthen its position in the global mica market while ensuring sustainable and responsible mineral development. =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....