Government Bans Importation Of Cigarette Lighters Costing Less Than Rs 20| Know why

The import of these non-refillable gas-powered pocket lighters was USD 0.66 million in 2022-2023. In April of this fiscal year it was USD 0.13 million.

New Delhi: The government of India on Thursday banned the import of cigarette lighters if the unit price falls below Rs 20, aiming to discourage inbound shipments of the product.

“Cigarette lighter import policies…is being revised from ‘free’ to ‘banned’. However, the import is free if the cif value is Rs 20 or more per lighter,” the Directorate General of Foreign Trade (DGFT) said in a notice.

What is CIF value?

The cost, insurance and freight (CIF) price is the price of a good delivered to the border of the importing country, or the price of a service delivered to a resident, before payment of import duties or other import or trade taxes and transportation margins within the country.

In international trade, this term is often used because the logistics process can be complex. In addition to determining the value of the goods, CIF also declares specific rules and regulations to declare the liability of the product.

Under the rules announced by the International Chamber of Commerce (ICC), which are considered standard practices, the seller is responsible for the goods until the product reaches the buyer’s port/destination.

Ban on imports of lighters to India

The ban applies to pocket lighters, gas lighters, non-refillable or refillable.

The import of these non-refillable gas-powered pocket lighters was USD 0.66 million in 2022-2023. In April of this fiscal year it was USD 0.13 million.

Similarly, inbound shipments of pocket lighters, gas-powered and refillable, were $8.87 million in 2022-2023 versus $7 million in 2021-22. It was USD 0.96 million in April of this fiscal year.

These lighters are largely imported from countries such as Spain, Turkey and the UAE.

Tamil Nadu Chief Minister MK Stalin had urged the Center in September last year to ban single-use plastic cigarette lighters to help the domestic matchbox industry.

Most of these plastic cigarette lighters, which are legally and illegally imported from countries like China, are available for Rs 10 and can replace 20 matchboxes, Stalin said. He further added that these non-refillable lighters result in immense plastic waste, harmful to the environment and also to health, he said.

The matchbox industry is a major source of employment in the southern part of Tamil Nadu.