โIndirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisoryโ
Dated: 23.03.2026
DGFT Amends Import Policy Condition of Chapter 95 โ
On March 18, 2026, the Government of India, through the Ministry of Commerce & Industry, issued Notification No. โ 64/2025-26, announcing a significant amendment to the Import Policy under Chapter 95 of the Indian Trade Classification (Harmonized System) [ITC (HS)], 2022 – Schedule I. โ This notification, published in the Gazette of India Extraordinary, marks a pivotal change in the import regulations for goods classified under Chapter 95. โ
Key Highlights of the Notification
The notification, issued by the Directorate General of Foreign Trade (DGFT), states the deletion of Policy Condition No. โ 2 (iii) under Chapter 95 of ITC (HS), 2022 – Schedule I (Import Policy). โ This amendment is effective immediately and has been approved by the Minister of Commerce & Industry. โ
Legal Framework
The amendment has been made under the authority granted by Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992. โ Additionally, it aligns with Paragraphs 1.02 and 2.03 of the Foreign Trade Policy, 2023, which provides the framework for regulating foreign trade in India. โ
Impact of the Notification โ
The deletion of Policy Condition No. โ 2 (iii) under Chapter 95 of ITC (HS), 2022 – Schedule I (Import Policy) is expected to have the following implications:
- Simplification of Import Procedures: The removal of this policy condition may streamline the import process for goods classified under Chapter 95, reducing compliance requirements for importers. โ
- Boost to Trade: By eliminating restrictive conditions, the amendment could encourage greater trade activity in the relevant product categories, fostering economic growth. โ
- Alignment with Foreign Trade Policy: The change reflects the government’s commitment to aligning import regulations with the broader objectives of the Foreign Trade Policy, 2023, which aims to promote ease of doing business and enhance India’s global trade competitiveness. โ
What is Chapter 95 of ITC (HS)?
Chapter 95 of the ITC (HS) classification pertains to “Toys, Games, and Sports Requisites; Parts and Accessories Thereof.” This chapter includes a wide range of products such as toys, puzzles, sports equipment, and other recreational items. The deletion of Policy Condition No. โ 2 (iii) may impact the import requirements for these goods, potentially making it easier for businesses to import them into India. โ
Conclusion
The Government of India’s decision to amend the Import Policy under Chapter 95 of ITC (HS), 2022 – Schedule I is a step towards simplifying trade regulations and promoting economic activity. โ By removing Policy Condition No. โ 2 (iii), the government has demonstrated its commitment to fostering a more business-friendly environment. โ Importers and stakeholders in the toys, games, and sports equipment industry should review the updated policy to understand its implications and leverage the opportunities it presents.
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Source: DGFT
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