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India amends norms for Shea Stearine exports and imports
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Shardul Nautiyal, Mumbai
November 06 , 2024
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The Directorate General of Foreign Trade (DGFT) has introduced modifications to the Standard Input Output Norm (SION) E-125, covering exports of Shea Stearine, under Paragraph 1.03 of the Foreign Trade Policy (FTP), 2023. The amendment includes updated input requirements for the import of Shea-related raw materials, aimed at aligning input quantities with variable oil content in Shea Nuts, the primary import item.
The modified import norms ensure efficient utilization of resources for the Shea Stearine industry, which is widely used in various sectors, including pharmaceuticals and cosmetics due to its stearic acid content and high melting point.
Shea butter and its byproducts are used as a raw material for drug formulations for various ailments, including herpes lesions. Shea stearin has a high melting point of 35–45°C, and its primary fatty acid is stearic acid.
The new rules also require customs to sample and test each batch of Shea Nuts for oil content, documenting the results on each bill of entry. This measure enables precise authorization based on the oil content. Furthermore, this SION will be valid till March 31, 2027 and will need to be re-assessed to reflect dynamic pricing structure of the industry. SION E-125 for the export of Shea Stearine has been amended with revised import entitlements.
Under the revised SION E-125, the updated import entitlements for producing 1 metric ton (MT) of Shea Stearine are as follows - Shea Nuts (oil content 45±1%) – 5.02 MT (adjusted for oil content deviations), Shea Butter – 2.21 MT, Activated Bleaching Earth – 0.048 MT and Acetone – 0.039 MT.
The amendment introduces a mechanism where permitted import quantities of Shea Nuts will adjust based on the oil content. A one percent increase in oil content beyond 46% will reduce the allowed import quantity by 150 kg, while a one percent decrease below 44% will increase it by 150 kg on a pro-rata basis.
“Regional Authority has been mandated to redeem authorizations based on the weighted average of oil content so endorsed by the customs authority. However, clearance of import consignments should not be held back till the results are obtained, but to be allowed upon customs examination & drawing of samples,” stated Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi.
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