Indian government prohibits import of roasted areca nuts under single code 08028090 to protect domestic farmers.
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SPECIAL AARANGEMENT
The Indian government has brought “Roasted Areca Nuts” under a single code 08028090, placing it under the prohibited category against the earlier free regime.
In its latest notification, the Directorate General of Foreign Trade (DGFT) brought ‘Roasted Areca Nuts,’ which was falling under ITC (HS) Code 08028090 and 20081920.
In a notification dated April 2, DGFT said ITC (HS) Code 08028090 also covers all kinds of processed arecanuts, including roasted arecanuts. The notification said ‘Roasted Areca Nuts’ are not covered under ITC (HS) Code 20081920 as it is specifically covered under Code 08028090.
On the effect of this, the notification said, “The import policy of ‘Roasted Areca Nuts’ falling under ITC (HS) Code 08028090 and 20081920 is revised from ‘Free’ to ‘Prohibited,’ and import shall be ‘Free’ if CIF value is ₹351 or above per kilogram.”
Impact on domestic market
Welcoming this notification, A Kishore Kumar Kodgi, President of Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, told businesslinethat the government has heeded the request of the cooperative on misclassification of roasted arecanut by some importers. This move was impacting the domestic farmers.
In January, the cooperative had written to the government that roasted arecanut, categorised as a value-added product, was being imported under various HSN codes, including 080280 and related classifications.
“This practice was often leveraged to bypass the appropriate tariff structure, thereby impacting domestic arecanut growers adversely. To avoid customs duty, some importers were misclassifying arecanut under different HSN codes,” he said.
Kodgi said minimum tariff value of ₹351 or above per kg enures that all imports of arecanut, including the roasted and value-added forms imported under various HSN codes, are subjected to a minimum import price that reflects fair market prices. This will deter attempts to exploit tariff discrepancies.
He hoped that the price of the low grade arecanut could go up because of the latest notification. It will be difficult for the importers to import roasted arecanuts as the new HSN code makes it mandatory for them to import at ₹351 or above per kg. He said the blending of imported roasted arecanuts with domestic arecanuts will stop, thus helping the domestic farmers in the country.
Thanking the Union Commerce Minister, Piyush Goyal, he said this policy amendment would definitely prevent market distortions caused by misclassified imports and uphold the quality and reputation of Indian arecanut in both domestic and international markets. The government’s decisive action not only safeguards the interests of Indian farmers but also reinforces the government’s dedication to promoting equitable trade policies, he said.
Published on April 4, 2025
