The Directorate General of Foreign Trade (DGFT) has amended the export policy of raw human hair.
The Export Policy of raw Human hair is amended from ‘Restricted’ to ‘Prohibited’. However, export shall be ‘Free’ if FOB value is US Dollar 65 or above per Kilogram.
The amendment in the Export Policy of raw human hair from ‘Restricted’ to ‘Prohibited,’ with an exception for exports valued at USD 65 or above per kilogram, is likely driven by several key factors.
One of the primary reasons for this change is to curb under-invoicing and illegal exports. In the past, exporters might have been undervaluing shipments to evade duties or restrictions. By setting a minimum Free on Board (FOB) price, the government ensures fair valuation and prevents revenue losses.
Another important factor is ensuring fair market value for Indian exporters. Raw human hair has a high demand in international markets, especially in China, Europe, and the US. By mandating a minimum export price of USD 65 per kilogram, the policy ensures that Indian suppliers receive fair compensation instead of selling at artificially low prices.
This amendment also encourages domestic processing and value addition. India is a major player in the global hair industry, not just for raw hair but also for processed products like wigs, extensions, and weaves. By restricting the cheap export of raw hair, the policy promotes local processing, which in turn creates more jobs and increases the export of higher-value products.
Additionally, the new regulation helps prevent smuggling and unregulated trade. The hair trade has often been linked to illegal smuggling, especially to neighboring countries. A stricter export policy ensures better regulation of the industry and compliance with legal trade practices.
Finally, this change aligns India’s export policy with international trade standards. Other major hair-exporting countries have similar price controls to prevent exploitation. By implementing this amendment, India ensures competitiveness in the global market while maintaining transparency in trade.
In summary, the amendment aims to prevent revenue losses, promote domestic value addition, curb smuggling, and ensure fair pricing for Indian exporters in international markets.
Notification Details
Notification No. 59/2025
Date: 10/02/2025
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