Tobacco Leaves: Restricted Grades Apply

The Restricted Grades of Baryte, specifically Grade A and Grade B, will Apply Limits to their exportation, as per the amendments introduced by the Directorate General of Foreign Trade (DGFT) under Notification No. 12/2026-27 dated 17 April 2026, which shifts these high-grade barytes into the “Restricted” category. This regulatory change, exercising powers under the Foreign Trade (Development & Regulation) Act, 1992, and the Foreign Trade Policy, 2023, aims to control the export of high-grade barytes, previously freely exportable, now requiring prior authorization or licensing from DGFT.

Key Facts

• Notification Number: 12/2026-27
• Date of Notification: 17 April 2026
• Act: Foreign Trade (Development & Regulation) Act, 1992
• Policy: Foreign Trade Policy, 2023
• Sections: Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992
• Paragraphs: Paragraph 1.02 and Paragraph 2.01 of the Foreign Trade Policy, 2023
• Item/Description: Baryte (Natural Barium Sulphate)
• Grades:
  • Grade A: Specific Gravity ≥ 4.2
  • Grade B: Specific Gravity between 4.10–4.20
  • Grade CDW: Specific Gravity (details not specified in the notification for this grade)
• Export Policy:
  • Grade A and Grade B: Restricted
  • Grade CDW: Free
• ITC/HS Code: 25111010, 25111020, 25111090
• Licensing Authority: DGFT

Statutory Context & Tax Analysis

The Foreign Trade (Development & Regulation) Act, 1992, empowers the Central Government to regulate foreign trade by facilitating imports and exports. Section 3 of this Act allows the Central Government to make provisions for the development and regulation of foreign trade, while Section 5 empowers it to prohibit, restrict, or regulate the import or export of goods. The Foreign Trade Policy, 2023, further outlines the framework within which exports and imports are regulated, with Paragraph 1.02 and Paragraph 2.01 providing the basis for the amendments made to the export policy of Baryte (Natural Barium Sulphate).

The introduction of a grade-wise regulatory framework for the export of Baryte signifies a shift towards a more controlled export environment for high-grade barytes. This change is aimed at ensuring that the export of crucial materials is managed in a way that aligns with national interests and policies. The requirement for prior authorization or licensing for the export of Grade A and Grade B barytes adds a layer of regulatory oversight, ensuring that these materials are exported in a manner that is consistent with the country’s economic and strategic goals.

Client Impact & Compliance Procedure

The amendment to the export policy of Baryte (Natural Barium Sulphate) will significantly impact exporters of Grade A and Grade B barytes, as they will now need to obtain authorization or licensing from the DGFT before exporting these products. This change does not affect the export of Grade CDW barytes, which remains freely exportable.

To comply with the new regulations, exporters of Grade A and Grade B barytes should follow these steps:

1. Review Existing Export Policies: Ensure understanding of the current export policy for Baryte (Natural Barium Sulphate) and the changes introduced by Notification No. 12/2026-27.
2. Determine Eligibility for Licensing: Assess whether the barytes to be exported fall under Grade A or Grade B and thus require licensing.
3. Apply for Authorization/Licensing: Submit an application to the DGFT for authorization or licensing, following the procedure outlined for items falling under the “Restricted” category.
4. Maintain Records: Keep detailed records of all exports, including documentation related to licensing and authorization, to facilitate audits and compliance checks.
5. File Necessary Forms: Ensure that all required forms and declarations are filed accurately and on time, as per the Foreign Trade Policy, 2023, and relevant regulations.
6. Regularly Update Knowledge: Stay informed about any further amendments to the export policy or regulatory requirements to ensure ongoing compliance.

By following these steps and staying abreast of regulatory changes, exporters of Baryte (Natural Barium Sulphate) can ensure compliance with the amended export policy and avoid potential legal and financial repercussions. The shift towards a more regulated export environment for high-grade barytes underscores the importance of diligent compliance and proactive engagement with regulatory requirements in the foreign trade sector.

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