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DGFT

Dated: 30.04.2025

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has released Trade Notice No. 04/2025-26 dated April 29, 2025, seeking stakeholder comments on aligning the Schedule-II (Export Policy) of the ITC(HS) 2022 with the amendments introduced by the Finance Act, 2025.

Objective:

The proposed realignment is in response to the amendments made to the First Schedule of the Customs Tariff Act, 1975 through the Finance Act, 2025. These amendments impact Chapter Notes, Harmonized System (HS) Codes, and product descriptions relevant to exports.

Key Proposals:

  1. Supplementary Notes in Various Chapters:
    • Clarification and redefinition of terms such as β€œRice, GI recognised,” “Makhana,” and β€œNatural Menthol.”
    • Detailed classification of agrochemicals, fertilizers, and chemical compounds under specific tariff items.
  2. Updated Product Descriptions and HS Codes:
    • Deletions and reclassifications of entries under Chapters 10, 20, 29, 38, and others.
    • Introduction of new entries based on updated product standards and definitions.
  3. New Export Conditions for Key Products:
    • Specific export compliance rules for GI-recognised rice, makhana, fertilizers, pesticides, and chemicals.
    • Six-month relaxation on certificate of inspection requirements for certain EU-bound rice consignments.

Stakeholder Participation:

  • In accordance with Para 1.07A of the Foreign Trade Policy 2023, DGFT has called for public consultation.
  • Stakeholders, including exporters, trade associations, and industry experts, are invited to submit their views and suggestions.
  • Inputs must be sent to export-dgft@nic.in within 7 days from the date of issuance of the notice.

Why It Matters:

  • Ensures synchronization of India’s Export Policy with the most recent customs tariff updates.
  • Helps streamline HS code-based classification for exporters.
  • Promotes transparency and stakeholder involvement in trade regulation changes.

Next Steps:

Exporters and industry participants are advised to review the detailed Annexure-I (Chapter Note amendments) and Annexure-II (HS code realignments) attached to the Trade Notice. Timely submission of comments will help shape a policy that is both compliant and industry-aligned.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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