The Directorate General of Foreign Trade (DGFT) recently passed important notifications related to the imports of menthol, a chemical used in the pharmaceuticals industry, cosmetics and other industries. This public notice dated December 24, 2024 restores previously suspended norms related to the importation of menthol under the Advance Authorisation and Duty-Free Import Authorisation (DFIA) schemes.
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Re-establishment of Import Norms
The newly established public notice reinstates the Standard Input-Output Norms (SION) suspended earlier in March 2024 for menthol imports. The new norms now incorporate two specific ITC (HS) codes.
| S.No. | ITC(HS) Code | Item Description |
| 1. | 2906 11 10 | Natural Menthol |
| 2. | 2906 11 90 | Other Menthol |
The move will enable manufacturers to obtain duty-free imports of menthol, which would smoothen the production process in export-oriented units.
Background of the Suspension
The suspension of the norms for the import of menthol was done through Public Notice No. 48/2023 on 7 March 2024, following the review of the standard input-output norms associated with imports of menthol. This was during a period when manufacturers could not obtain the required duty-free authorizations needed for their operations. To these many stakeholders in the industry relying on menthol as one of the core raw materials, the reinstatement comes as a great relief.
Impact on Manufacturers
Now, with the implementation of these rules, Regional Authorities (RAs) and Notified Customs (NCs) are authorized to take forward applications for Advance Authorisation and DFIA on the new rules. This development is likely to make Indian producers more competitive globally as their cost of inputs goes down and the supply chain process becomes more streamlined. The sector that is a heavy user of menthol and is most directly affected by the decision is that of pharmaceutical and personal care items.
Future Outlook
The DGFT's action is a reflection of its commitment to export-oriented industries, as it will ensure access to essential raw materials such as menthol. With this change, it is expected that the positive impact will be felt across various sectors that use menthol in their products. Stakeholders are advised to keep abreast of any further amendments or guidelines issued by the DGFT to reap maximum benefits from these policies.
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