DGFT Notifies Harmonised Amendments to Export Policy in Line with Finance Act 2025

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Dated: 03.06.2025

DGFT Notifies Harmonised Amendments to Export Policy in Line with Finance Act 2025

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has issued Notification 09/2025-26, introducing significant amendments to Schedule-II (Export Policy) of ITC (HS) 2022. These changes align the export policy with the Finance Act, 2025, ensuring streamlined trade practices and compliance with updated regulations. Here’s a detailed overview of the key updates and their implications.

What’s New?

The notification introduces modifications to the export policy for various goods, including rice, makhana, chemicals, metals, and more. These changes include the deletion, amendment, splitting, and merging of ITC (HS) codes, along with updates to policy conditions. The updated ITC (HS) codes and supplementary notes are now available on the DGFT website.

Key Highlights

1. Rice Export Policy

Deleted Codes: ITC HS codes for parboiled rice, basmati rice, and other rice varieties have been deleted.
New Codes: Specific codes for GI-recognized rice varieties have been introduced, with export permitted under certain conditions.
Policy Condition: Exports to EU Member States and select European countries require a certificate of inspection from the Export Inspection Council/Agency. For other European countries, this requirement is waived for six months.

2. Makhana (Fox Nut) 

Supplementary notes define “makhana” as seeds of the plant Euryale ferox Salisb. .
New codes for popped makhana, makhana flour, and other makhana products have been added, with export categorized as “Free.”

3. Chemicals and Derivatives

Numerous ITC HS codes for chemicals, including organo-sulphur compounds, nitrile-function compounds, and halogenated derivatives, have been deleted.
New codes have been introduced for specific chemicals, with export categorized as “Free” or “Restricted” based on policy conditions.

4. Metals: Silver, Gold, and Platinum

Codes for certain unwrought and semi-manufactured forms of silver, gold, and platinum have been deleted.
New codes specify purity levels, with export categorized as “Free.”

5. Agrochemicals and Pesticides 

Supplementary notes provide detailed definitions and standards for agrochemicals, including insecticides, fungicides, herbicides, and plant growth regulators.
Export conditions are based on content by mass and compliance with Indian Standards (IS).

6. Fire Extinguishing Preparations 

Codes for fire-extinguishing preparations have been deleted, with new codes introduced for specific chemical compositions.

Supplementary Notes: A Detailed Framework

The notification includes supplementary notes for various chapters, providing clarity on definitions, standards, and specific goods covered under each tariff item. For example:

Chapter 10: Defines GI-recognized rice varieties.
Chapter 20: Clarifies the term “makhana.”
Chapter 29: Lists specific chemicals under sub-headings, such as natural menthol and alpha-naphthyl acetic acid.
Chapter 38: Details standards for agrochemicals conforming to Indian Standards (IS).

Impact on Exporters

These updates aim to:

Enhance Trade Compliance: By aligning export policies with the Finance Act, 2025, exporters can ensure adherence to updated regulations.
Promote GI Recognition: The focus on GI-recognized rice varieties highlights India’s commitment to protecting geographical indications.
Streamline Chemical Exports: Clear definitions and standards for chemicals simplify export procedures.
Support Agrochemical Trade: Detailed supplementary notes provide exporters with clarity on permissible goods and standards.

How to Access the Updated ITC (HS)? 

The updated ITC (HS) codes and supplementary notes are available on the DGFT website: https://dgft.gov.in. Exporters are encouraged to review the changes and ensure compliance with the new policies.

Conclusion

The harmonization of Schedule-II (Export Policy) with the Finance Act, 2025, marks a significant step in streamlining India’s export framework. By introducing clear definitions, updated codes, and policy conditions, the DGFT aims to facilitate trade while ensuring compliance with international standards. Exporters should leverage these updates to optimize their trade practices and contribute to India’s growing global trade footprint.

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Source: DGFT

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