In follow up to the ongoing issue of detained Chapter 17 (lactose) and 35 (WPC 80, WPI, MPC 85, casein) products in India, we can now share the results of numerous discussions between USDEC Trade Policy and MARA groups with the U.S. government, and the U.S. government's discussions with the Indian government. Although there is no formal government-to-government agreement, these unofficial conversations have resulted in the issuance of a circular from India's Ministry of Fisheries, Animal Husbandry and Dairying, dated July 8, 2020, indicating no objection to the one-time import of dairy products of Chapters 17 and 35 with a bill of lading dated on or before April 30, 2020. Based on discussions with the U.S. government, this circular is expected to help facilitate the release of dairy products that have been detained following a policy change by India this spring to require the Indian model dairy certificate for Chapter 17 and 35 dairy products, which had been previously allowed import without this certificate.

In light of continually shifting positions by the Indian government regarding these shipments, however, USDEC is urging members with detained shipments to swiftly share information with USDEC staff regarding whether detained shipments are now being permitted entry as a result of the new circular.

While we hope this circular provides the necessary clarity to Indian ports to finally release the long-detained shipments, until those shipments are released, we should not open the champagne yet.  Furthermore, the lack of agreement on a mutually acceptable dairy certificate means that the market will remain out of reach for U.S. products going forward without an acceptable health certificate that can be issued by an official government agency. We recognize the importance of the Indian market to so many USDEC members, and have underscored to USTR and FAS the sizable negative trade impact this sudden shift in Indian policy has imposed on our members and the need for a corresponding adjustment to our dairy requests of India in the continued U.S.-India trade negotiations. USTR and FAS have acknowledged the importance of this market and the impact of the abrupt policy change and have reiterated that they continue to negotiate dairy trade terms with India.

USDEC requests that all exporters that had detained shipments continue to update Sandra Benson at sbenson@usdec.org when shipments clear, or with any other concerns related to the detained consignments. For information on the state of India certificate negotiations, please contact Shawna Morris at smorris@usdec.org.