DGFT Notifies Major Shift in Export Policy for Wood Pellets and Briquettes

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Dated: 07.04.2026

DGFT Notifies Major Shift in Export Policy for Wood Pellets and Briquettes

Introduction

In a significant policy move impacting the biomass and wood-based export sector, the Government of India, through the Directorate General of Foreign Trade (DGFT), has amended the export policy governing wood pellets and wood briquettes under Chapter 44 of ITC (HS), 2022.

Vide Notification No. 04/2026-27 dated 06 April 2026, the Government has transitioned these products from a liberal or prohibited regime to a “Restricted” export category, mandating prior authorization for exports.

This development has immediate implications for exporters, manufacturers, and international buyers relying on Indian biomass products.

Legal Framework Behind the Amendment

The notification has been issued under:

Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992
Read with Para 1.02 and Para 2.01 of the Foreign Trade Policy (FTP), 2023

These provisions empower the Central Government to:

Regulate exports and imports
Modify export policy conditions
Impose restrictions in public interest

Key Changes Introduced

1. Wood Pellets (ITC HS Code: 44013100)

Particulars	Earlier Position	Revised Position
Export Policy	Prohibited	Restricted
Export Condition	Export generally not permitted	Allowed only with DGFT authorization

As per the table on Page 1 of the notification, wood pellets—classified as sawdust, wood waste, and scrap agglomerated into pellets—were earlier completely prohibited for export, except certain conditional cases.

Now, exports are conditionally permitted, subject to obtaining a Restricted Export Authorization.

2. Wood Briquettes (ITC HS Code: 44013200)

Particulars	Earlier Position	Revised Position
Export Policy	Free	Restricted
Export Condition	No authorization required	Authorization mandatory

As seen on Page 2 of the notification, wood briquettes have moved from a “Free” export category to “Restricted”, introducing compliance obligations for exporters.

Revised Policy Condition: A Unified Control Mechanism

The revised condition for both categories now states:

“Export shall be permitted under a Restricted Export Authorization.”

This effectively introduces a licensing regime, bringing both products under DGFT’s regulatory scrutiny.

Effect of the Notification

As explicitly clarified under Para 2 (Effect of this Notification):

Wood pellets → Prohibited → Restricted
Wood briquettes → Free → Restricted

Immediate implication:

All exports of these items can now be undertaken only after obtaining DGFT authorization.

Policy Rationale: Why This Change?

While the notification itself does not elaborate on reasons, the shift indicates broader regulatory intent:

1. Domestic Resource Conservation

Wood-based biomass is increasingly used for:

Renewable energy (pellets)
Industrial fuel substitution

Restriction ensures domestic availability.

2. Environmental Governance

Control over:

Deforestation risks
Unregulated biomass extraction

3. Export Monitoring

Transition from:

Unregulated / absolute ban → Controlled export regime

This allows the government to:

Monitor quantities
Allocate export quotas
Ensure sustainable sourcing

Practical Impact on Exporters

1. Mandatory DGFT Authorization

Exporters must now:

Apply through DGFT portal
Justify quantity, sourcing, and compliance

2. Increased Compliance Burden

Documentation may include:

Source of raw material
Sustainability certifications
End-use declarations

3. Delay in Export Timelines

Authorization process may affect shipment schedules
Contracts may require renegotiation

4. Risk of Penal Action

Export without authorization may attract:

Penalties under FTDR Act
Customs confiscation / seizure

Legal Interpretation & Trade Strategy

Shift from Absolute Ban to Conditional Permission

For wood pellets:

Earlier: Total prohibition
Now: Conditional liberalization (with control)

This reflects a policy balancing approach rather than outright restriction.

Alignment with Export Control Jurisprudence

The move aligns with established principles:

Government retains absolute discretion in export regulation
Export is a privilege, not a right
Restrictions are valid when based on:
- Public interest
- Environmental concerns
- Economic stability

Compliance Checklist for Exporters

Identify correct ITC(HS) classification (44013100 / 44013200)
Apply for DGFT Restricted Export Authorization
Ensure traceability of raw material
Review existing export contracts
Align logistics timelines with approval process
Maintain records for audit / verification

Conclusion

The DGFT Notification dated 06 April 2026 marks a structural shift in India’s biomass export policy—moving towards a controlled and monitored export regime for wood pellets and briquettes.

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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Source: DGFT

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