Yes, if that rice is not from GI location (mainly India or Pak), “basmati” tag cannot be used.
Below is the list of approved varieties of basmati from wikipedia:
One more link on GI tag approved states in India. GI tag for Basmati rice of 7 states approved | Business Standard News
FY12 KRBL Annual Report:
Basmati, one of the most expensive varieties of rice in the world, is a premium long-grain fine-textured rice. A Geographical Indication (GI) product, this aromatic grain is grown only in certain parts of India and Pakistan due to conducive agro-climatic and soil conditions. It is estimated that 70% of global Basmati Rice is produced in India and the balance in Pakistan.