CBIC Issues New Guidelines to Standardize Customs Queries on Foreign Trade Policy Clarifications

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 03.06.2026

CBIC Issues New Guidelines to Standardize Customs Queries on Foreign Trade Policy Clarifications

The Central Board of Indirect Taxes & Customs (CBIC) has issued a significant directive—Instruction No. 07/2026-Customs—aimed at standardizing and expediting the process for Customs field formations to seek clarifications on the interpretation of Foreign Trade Policy (FTP) provisions from the Directorate General of Foreign Trade (DGFT). This move is designed to ensure consistency, avoid delays, and minimize inconvenience to the trading community.

Background and Rationale

Previously, Customs field formations sometimes communicated directly with DGFT Headquarters or Regional Authorities to resolve interpretational issues related to FTP provisions. This practice led to:

Divergent practices across different Customs jurisdictions
Delays in assessment and clearance of consignments
Unnecessary inconvenience to importers and exporters

To address these challenges, the CBIC has examined the issue and introduced a streamlined mechanism for handling such queries.

Key Instructions for Customs Field Formations

The new instructions, which are to be strictly followed by all Customs field formations, include the following:

1. No Direct Correspondence with DGFT

Field formations are prohibited from directly contacting DGFT Headquarters or Regional Authorities for clarification or interpretation of FTP provisions or policy conditions.

2. Escalation Protocol

Initial Examination: Interpretational issues must first be examined at the Commissionerate or Zonal level.
Referral to Board: Only issues requiring policy-level clarification, after thorough examination, may be referred to the CBIC Board by the Principal Chief Commissioner or Chief Commissioner of the concerned Zone.

3. Commodity-Specific Issues

Issues specific to certain commodities must be examined and approved by the relevant National Assessment Centre (NAC) before being referred to the Board.

4. Mandatory Details in References

Every reference sent to the Board must include:

Brief Statement of Facts: A concise summary of the case.
Relevant FTP Provisions: Clearly specify the policy provisions in question.
Field Formation’s Interpretation: The local understanding or interpretation of the policy.
Specific Points for Clarification: Clearly state what needs to be clarified.
Number of Affected Cases: Indicate how many cases are impacted by the issue.
Pending Consignments: State whether any consignments are awaiting clearance due to the issue.
Urgency Categorization: Classify the urgency as Normal, Time-sensitive, Perishable, or Export deadline.

5. Avoiding Delays in Trade

Field formations should not keep consignments pending solely due to interpretational issues. Where legally permissible, they should use provisional assessment or other facilitative mechanisms under the Customs Act, 1962 to minimize inconvenience and avoid disruption of legitimate trade.

Implementation and Feedback

Any difficulties in implementing these instructions, or information about pending references already made, should be promptly brought to the notice of the Board.

Conclusion

This directive marks a crucial step towards institutional consistency and efficiency in the implementation of Foreign Trade Policy provisions. By following the prescribed protocol, Customs field formations can ensure uniformity, reduce delays, and better serve the interests of the trading community.

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!

Source: CBIC, Ministry of Finance, Govt. of India

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