DGFT Simplifies Export Rules for Pharma Grade Sugar: Key ANF-2N Changes Explained

ANF-2N Export Authorisation for Pharma Grade Sugar: Key Changes Explained

The ANF-2N export authorisation rules for pharma grade sugar were recently updated by the Directorate General of Foreign Trade (DGFT) to streamline licensing and enhance regulatory control. These changes affect pharmaceutical exporters, sugar manufacturers, and merchant traders dealing in specialised sugar used in medicinal formulations.

This blog breaks down the amendment, its legal basis, and how to comply—step by step.


📌 What is ANF-2N?

ANF-2N is the Application Form for obtaining export authorisation under the Foreign Trade Policy (FTP). It’s used when exporting restricted goods, including pharma grade sugar, which require prior government approval.


🧾 Legal Basis for Export of Pharma Grade Sugar

  • Foreign Trade (Development & Regulation) Act, 1992
  • DGFT Notification No. 63/2015-20 dated 05.07.2024
  • Policy Circular No. 10/2024-25 dated 08.07.2024
  • Amended ANF-2N format as per Trade Notice No. 18/2024-25 dated 19.07.2024

Under the HS Code 1701, pharma-grade sugar is placed in the ‘Restricted’ export category. Hence, a valid Export Authorisation (EA) is mandatory.


🆕 What’s Changed in the Amended ANF-2N?

The DGFT’s amended format aims to prevent misuse of sugar meant for pharma use. Here’s what’s new:

Old FormatUpdated Format (ANF-2N)
Generic product descriptionMandates specific grade & chemical specs
No end-use certification requiredNow requires certificate from pharma buyer
No stock details neededMust mention sugar origin (factory, stockist, etc.)
No export performance proofMust attach past export data if applicable

✅ Who Needs to Apply?

  • Pharma companies exporting formulations using pharma-grade sugar
  • Sugar mills supplying to such exporters
  • Merchant exporters facilitating the trade

📄 Documents Required for Export Authorisation

  1. Duly filled ANF-2N form (latest format)
  2. Purchase order from foreign buyer
  3. End-use certificate issued by buyer
  4. Sugar procurement documents
  5. IEC code and RCMC
  6. Past export performance, if available

🧭 Step-by-Step Process to Apply for Export Licence

  1. Login to DGFT portalhttps://dgft.gov.in
  2. Navigate to ‘Services > Export Management > Apply for Authorisation’
  3. Select Restricted Items and fill ANF-2N
  4. Upload supporting documents
  5. Pay application fee via e-wallet
  6. Submit and track status in your DGFT dashboard

🔎 Subheading with Keyphrase: ANF-2N Export Authorisation Rules

Understanding the ANF-2N export authorisation rules for pharma grade sugar is crucial to avoid penalties and shipment delays. Since the product falls under restricted exports, failure to comply could lead to rejection of shipping bills by Customs.

Tip from Expert:
Always mention the exact chemical composition (e.g., IP grade, BP grade) in your ANF-2N form. This matches with import country standards and speeds up approval.


⚖️ Enforcement and Monitoring

  • Customs cross-checks DGFT-issued licences before allowing shipment.
  • DGFT HQ may call for inspection in case of quantity mismatch or vague usage purpose.
  • Licences granted under amended ANF-2N are valid for 6 months.

📌 Internal Link

Want to know how to track your DGFT licence status online? Read our step-by-step DGFT tracking guide on Efiletax.


Summary

DGFT has amended the ANF-2N form for export of pharma grade sugar. Exporters must now provide detailed sugar specs, end-use certificates, and past export performance. New rules tighten control to prevent misuse of restricted exports under HS Code 1701.


❓ FAQs

Q1. Can pharma exporters still use the old ANF-2N format?
No. As per Trade Notice 18/2024-25, the new format is mandatory from 20 July 2024.

Q2. What is pharma grade sugar?
It refers to highly refined sugar used in medicinal syrups and tablets, often complying with IP/BP/USP standards.

Q3. Can I apply without an end-use certificate?
No. This is a mandatory document to prove that the sugar is not being diverted for food or other uses.

Q4. How long does DGFT take to approve?
Usually 10–15 working days if all documents are in order.

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