DGFT Liberalizes Import Regime for Low Ash Metallurgical Coke: Policy Shifted from Restricted to Free Category

The Directorate General of Foreign Trade (DGFT) has issued a significant policy reform impacting the import framework for Low Ash Metallurgical Coke, bringing relief to industries dependent on this critical raw material. Through Notification No. 54/2025-26-DGFT dated 3 January 2026, the Government of India has fundamentally altered the import classification for this commodity under Chapter 27 of the ITC (HS), 2022.

Statutory Framework and Authority

The notification has been issued invoking the statutory authority granted under Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992. These provisions empower the Central Government to regulate and develop foreign trade in alignment with national economic objectives. The notification specifically references paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2023, demonstrating continuity with the overarching trade policy framework as amended periodically.

This exercise of delegated legislative power reflects the Government's prerogative to adapt import-export regulations in response to evolving industrial requirements and market dynamics. The authority vested in the DGFT enables swift policy modifications without requiring extensive parliamentary procedures, thereby ensuring agility in trade governance.

Core Policy Amendment: Deletion of Policy Condition No. 8

The substantive change introduced by this notification centers on the deletion of Policy Condition No. 8 of Chapter 27. This policy condition previously imposed restrictions on the import of Low Ash Metallurgical Coke, requiring compliance with specific regulatory criteria before imports could be effected. The removal of this condition represents a fundamental shift in the regulatory philosophy governing this commodity.

Policy Condition No. 8 had established a framework of conditional approval, potentially involving documentation requirements, quantitative ceilings, or qualitative specifications that importers needed to satisfy. The deletion eliminates these procedural and substantive barriers, transitioning the import regime from a discretionary approval model to an open access framework.

Technical Definition and Scope

Low Ash Metallurgical Coke is technically defined within this notification as the material possessing ash content below 18%. This threshold serves as the crucial classification criterion distinguishing this category from higher ash content variants. The scope explicitly encompasses several specialized forms:

  • Coke fines and coke breeze: These are smaller particle size variants of metallurgical coke, commonly utilized in specific industrial processes where granular material is preferred.

  • Ultra-low phosphorous metallurgical coke: This premium grade variant features reduced phosphorous content, essential for producing high-quality steel grades where phosphorous impurities must be minimized.

The technical specifications are critical because metallurgical coke quality directly impacts steel production efficiency, product quality, and overall manufacturing economics in the ferrous metallurgy sector.

ITC (HS) Codes Covered Under the Amendment

The notification applies comprehensively to four distinct ITC (HS) classification codes, ensuring complete coverage of all relevant product categories:

ITC (HS) Code 27040020

This classification covers coke and semi-coke derived from lignite or peat sources. Previously categorized under the "Restricted" import policy and subject to Policy Condition No. 08 of Chapter 27, this code now falls under the "Free" category with no policy conditions attached. The elimination of restrictions facilitates unrestricted import of lignite and peat-based coke products.

ITC (HS) Code 27040030

This code specifically addresses hard coke of coal, a variant distinguished by its physical properties and density characteristics. The reclassification from "Restricted" to "Free" status removes earlier compliance obligations, enabling seamless procurement from international markets without regulatory approvals.

ITC (HS) Code 27040040

Soft coke of coal falls under this classification. The textural and structural differences between hard and soft coke necessitate separate classification codes. Like other variants, this category has been liberalized entirely, transitioning from restricted import status to free importation.

ITC (HS) Code 27040090

This residual category captures "Other" forms of coke and semi-coke not explicitly covered in the preceding classifications. The comprehensive coverage ensures no variant of Low Ash Metallurgical Coke remains inadvertently subject to obsolete restrictions.

Comparative Analysis: Before and After Policy Framework

Earlier Regime

Under the previous regulatory architecture, all four ITC (HS) codes mentioned above were classified under the "Restricted" import policy category. This classification mandated that importers obtain necessary approvals, potentially demonstrate end-use, maintain documentation trails, and satisfy Policy Condition No. 08 of Chapter 27. Such requirements created procedural delays, compliance costs, and uncertainty regarding import timelines.

The restricted classification typically involves:

  • Mandatory licensing or permission requirements
  • Quantitative limitations on import volumes
  • Quality certification and pre-shipment inspection protocols
  • End-use monitoring and reporting obligations

Revised Regime

Following the notification, the import policy for all specified ITC (HS) codes has been uniformly reclassified as "Free." This designation signifies:

  • Elimination of prior approval requirements
  • Removal of quantitative restrictions
  • Simplified customs clearance procedures
  • Enhanced predictability for importers and industrial consumers

The policy condition column now reflects a dash (–), indicating the complete absence of conditional requirements. This represents maximum liberalization within the foreign trade regulatory framework.

Industrial Significance and Sectoral Impact

Steel Industry Requirements

Metallurgical coke serves as an indispensable input in blast furnace operations for steel production. It functions simultaneously as a fuel source, reducing agent, and structural support medium within the furnace. The quality parameters—particularly ash content and phosphorous levels—directly influence:

  • Steel quality and grade specifications
  • Energy efficiency of blast furnace operations
  • Production costs and competitiveness
  • Environmental compliance parameters