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Dated: 17.07.2025

The Directorate General of Foreign Trade (DGFT) has issued Policy Circular No. 1/2025-26, dated 15th July 2025, to clarify that organic textile exports do not fall within the scope of the National Programme for Organic Production (NPOP) and therefore do not require a Transaction Certificate (TC) from NAB-accredited bodies under NPOP.

This clarification follows multiple representations from exporters and the Apparel Export Promotion Council (AEPC) seeking clarity on certification obligations under the updated NPOP framework notified earlier this year.

Background: The NPOP and Public Notice No. 39/2024-25

On 5th January 2025, DGFT issued Public Notice No. 39/2024-25 to notify the Eighth Edition of the National Programme for Organic Production (NPOP). This updated version outlined revised certification and accreditation norms for organic products, creating widespread uncertainty among exporters about whether organic textile products would also be subject to the same requirements as organic food or agricultural commodities.

Given that APEDA (Agricultural and Processed Food Products Export Development Authority) implements the NPOP under the Ministry of Commerce, the matter was referred to APEDA for official clarification.

Key Clarification by DGFT

Based on inputs received from APEDA, DGFT issued the following clarifications through Policy Circular No. 1/2025-26:

Organic Textiles Not Covered Under NPOP Accreditation

Clause 4.1 of Chapter 4 of the Eighth Edition of NPOP defines the scope of accreditation, which includes:

  • Crop Production
  • Livestock and Poultry
  • Beekeeping (Apiculture)
  • Aquaculture
  • Food Processing & Handling
  • Animal Feed Processing
  • Mushroom and Seaweed Production
  • Greenhouse Crop Production
  • Any other categories as approved by NPOP from time to time

However, “Organic Textiles” are not included in this scope, meaning the provisions of NPOP do not apply to their export certification.

No Requirement for NPOP-based TC for Textile Exports

Given that organic textiles are not part of the NPOP accreditation categories:

  • Exporters do not need to obtain a Transaction Certificate (TC) from a NAB-accredited body under NPOP for textile exports.

This relieves exporters from having to seek agricultural-style certification for textile products, which are fundamentally different in production and regulation.

Acceptable Certificates for Organic Textile Exports

While NPOP-based TCs are not required, exporters of organic textiles must furnish:

  • A valid Transaction Certificate (TC) issued by certification bodies authorized through:
    • Textile Exchange, or
    • Global Organic Textile Standard (GOTS)

Or as may be specifically mandated by the buyer or importing country regulations.

This aligns India’s regulatory practice with globally recognized certification systems for organic textiles.

Implications for Stakeholders

For Exporters of Organic Textiles

  • Greatly simplifies compliance by avoiding unnecessary certification.
  • Exporters should continue using GOTS and Textile Exchange-certified TCs.
  • Avoid submitting NPOP TCs or approaching NAB-accredited bodies under APEDA.

For DGFT Regional Authorities and Customs

  • Should not insist on NPOP-linked certification for clearing organic textile shipments.
  • Must align documentation scrutiny in accordance with this policy circular.

For Certification Bodies

  • NPOP-accredited bodies must refrain from issuing TCs for organic textile exports.
  • Certification should only be issued by authorized GOTS/Textile Exchange bodies.

For Apparel & Textile Industry

  • Clarifies long-standing ambiguity on dual certification.
  • Facilitates faster processing of export consignments by avoiding unnecessary regulatory delays.

Conclusion

DGFT’s Policy Circular No. 1/2025-26 is a welcome clarification that brings regulatory certainty to India’s booming organic textile export sector. By delineating the scope of NPOP and excluding organic textiles from its certification requirement, DGFT has ensured that Indian exporters can continue to operate smoothly under internationally accepted standards like GOTS, without the burden of duplicative or irrelevant certifications.

This move is expected to reduce compliance costs, prevent shipment delays, and enhance India’s credibility as a reliable exporter of certified organic textiles.

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.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!


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