We recognize the importance of the Indian market to so many USDEC members, which is why USDEC's MARA and Trade Policy teams have been working together on improving the U.S.-India dairy trade situation. The information below pertains to relief for at-port and en-route shipments of lactose and Chapter 35 dairy products. This is just one slice of the much bigger problem of U.S. access to the Indian dairy market and the continued work of USDEC's MARA and TP teams with the U.S. government to address that issue. 

Latest Developments:
As part of our work with USTR and FAS to assist USDEC members with disrupted exports to India, USDEC staff held a conference call yesterday with FAS and USTR regarding the shipments of Chapter 17 and 35 dairy products that are now detained or expected to be detained after arrival. Our work with the Administration on this issue since late April has resulted in shipment relief for USDEC members with products shipped prior to India's announced policy shifts. See details below. 

Recap & Background: 

• As impacted USDEC exporters are aware, these disruptions to trade resulted from the recent policy change to require the Indian model dairy certificate for dairy products under these HS codes (see Member Alert of May 26).
• Following this change in enforcement, USDEC has worked closely with the U.S. government over the course of the past month to request that India's government allow the import of all products exported prior to the new Indian policy notices and provide information necessary to support those efforts.
  • As part of that push, USDEC has also underscored to USTR & 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.

Details on New Information for Impacted Shipments: 

As of yesterday, we can confirm the shipments that were exported before the respective policy changes are expected to be released following the guidance below:

• Chapter 35 dairy products (WPC80, WPI, casein, MPC 85, etc.) will be allowed import if exported from the U.S. prior to May 5.
• Chapter 17 dairy products (lactose) will be allowed import if exported from the U.S. prior to May 20.

In order to secure release of detained consignments, please follow the steps below:

• The importer must submit a letter to the port of entry requesting entry of products exported prior to the enforcement changes noted above. Importers should also present a summary of shipments and the bills of lading as proof of the dates of export.
  • USDEC will provide template language for this letter as swiftly as possible after further consultations with the government on optimal text for the letter.
• Importers should immediately share a copy of the request letters with their exporter.
• Exporters should send the copy of the request letter to Sandra Benson at sbenson@usdec.org.
• USDEC will forward this request to the USG so that they can follow up with Indian officials on the release of shipments meeting the above criteria.

India's government has reiterated its position that the Indian model dairy certificate is required for all shipments of Chapter 17 and 35 dairy products going forward. USDEC has received consistent feedback from members that the feed requirement statement on that certificate is not presently achievable. The U.S. governments continues to negotiate with India on dairy trade condition as part of a wider set of U.S.-India trade discussions. We have clearly conveyed to the U.S. government the significant harm that this new policy is imposing on U.S. dairy exporters and the need to address this during the continued U.S.-India trade negotiations.

For any Chapter 17 and 35 products exported after May 20 and 5, respectively, we do not anticipate import will be allowed. Any exporters that wish to return their shipments exported after these dates may consult the United States Returned Goods document in Volume 2 of the USDEC Export Guide for information on bringing rejected goods back to the U.S.

Please contact Sandra Benson at sbenson@usdec.org with any questions on this agreement to release detained products. Please contact Shawna Morris at smorris@usdec.org with any questions on the status of the certificate negotiations.