DGFT Clarifies that Areca Nut Restriction is to Limit Zero Duty Advance Authorisation Imports to Actual Users

Replying to the concerns raised by the nut growers and other stakeholders, Director General of Foreign Trade, Dr Anup K Pujari has said that Public Notice No.112 issued on 15th May, 2012 (can be seen at http://164.100.9.245/Exim/2000/PN/PN12/pn11210.htm) is actually to help the Areca nut growers. This Public Notice concerns itself with only duty free imports of areca nut either on the basis of advance authorisation or DFIA. It may be noted that duty paid imports are not affected by this Public Notice.

Prior to issue of this Public Notice anyone could have imported areca nut under the duty free schemes. After the issue of this Public Notice the class of persons permitted to effect such imports would get limited to (a) actual users and (b) such importers only and only when the respective Standard Input Output Norms (SION) specifically includes areca nut as a permissible input. “Therefore, if areca nut is not specifically listed as a permissible input, traders and non-manufacturing units would not be permitted to import areca nut under Advance Authorisation and / or DFIA. It is not Government’s intention to cause any impediment to manufacturing units (actual users). But non manufacturing units would face a restriction as explained above” added Dr Pujari.

[Source: Ministry of Commerce & Industry, PIB Press Release dated 25^th May 2012]