DGFT extends export obligation period for walnut imports, may benefit US exporters

New Delhi: In another move that may benefit US exporters dealing in walnut shipments to India, the Directorate General of Foreign Trade (DGFT) has extended the export obligation period for walnuts imported under the Advance Authorisation scheme, aligning it with the standard 18-month timeline applicable to most other products.

The move provides relief to traders, who previously had to adhere to a much shorter deadline for re-exporting processed walnuts, and is expected to benefit India’s key suppliers, including the US.

While explaining the DGFT notification, Global Trade Research Initiative (GTRI) founder Ajay Srivastava said, “With a longer timeframe—18 months instead of 180 days—to process and re-export walnuts, Indian traders can plan their imports more efficiently without the pressure of a short turnaround.”

This could lead to increased purchases from the US, which supplies a significant share of India's walnut imports, he said.

Until now, importers bringing in in-shell walnuts under the scheme were required to export the shelled product within 180 days. This shorter obligation period is common for select commodities such as tea and raw sugar (180 days) and gold (120 days), where a faster turnaround is mandated.

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However, in a shift from this approach, DGFT’s Public Notice No. 52, issued on 27 March, eliminated the 180-day constraint for walnuts, allowing them to be treated on par with other items under the Advance Authorisation scheme.

The extension comes as India continues to be a major importer of walnuts, with shipments worth $1.6 billion recorded in 2024. The US remains the dominant supplier, accounting for 66.8% of total imports, or about $1.07 billion, according to commerce ministry data.

The policy change could help boost demand for US walnuts by easing the export obligation timeline, giving Indian importers more flexibility in processing and re-exporting them, as per GTRI.

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US trade team in India

This is the third decision taken by the Indian government as the US delegation, led by Assistant US Trade Representative Brendan Lynch, is in New Delhi for face-to-face discussions on BTA. The negotiations follow a joint statement issued on 13 February by the leaders of both nations after Prime Minister Narendra Modi and US President Donald Trump met in Washington.

The US delegation, led by Assistant US Trade Representative Brendan Lynch, is in New Delhi for face-to-face discussions on BTA that commenced on Wednesday.

Also read | Will India press for an early harvest in trade talks with US?

A day before President Trump told reporters on Tuesday that he may grant many countries 'breaks' from his reciprocal tariff move—without providing details—India decided on Monday to drop the so-called Google tax, a levy on multinational companies providing services in India, in an apparent move to placate the US.

A day later, on Tuesday, India's tax regulator revised income tax rules to offer greater benefits to electric vehicle (EV) and EV battery makers. A circular from the Central Board of Direct Taxes (CBDT) expanded safe harbour rules by raising the eligibility threshold from ₹200 crore to ₹300 crore.

Lithium-ion batteries for electric and hybrid vehicles have been classified as core auto components, making them eligible for tax benefits. These changes are seen as part of India's strategy in ongoing trade talks with the US, where it is seeking better market access for its exports.

To be sure, India has revised tariffs on several US products to address trade concerns. The import duty on bourbon whiskey has been reduced from 150% to 100%. Tariffs on Harley-Davidson motorcycles have been lowered from 50% to 30%, and the duty on ethernet switches has been cut from 20% to 10%.