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Dated: 02.07.2026

Major Amendments to TRACE Guidelines: Enhanced Support and Expanded Certifications for Indian Exporters under EPM

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has issued Trade Notice No. 09/2026-27, introducing significant amendments to the Guidelines for Trade Regulations, Accreditation, and Compliance Enablement (TRACE) as part of the Export Promotion Mission (EPM) – Niryat Disha. These changes aim to enhance operational clarity, streamline financial assistance, and expand the scope of eligible certifications for Indian exporters.

Key Highlights of the Amendments

1. Dynamic and Expanded List of Eligible Certifications

• The list of eligible testing, inspections, and certifications is now dynamic and will be periodically reviewed based on stakeholder consultations and international standards.
• The updated list (Annexure-I) now covers 462 certifications across various sectors and geographies, including agriculture, electronics, food, medical devices, textiles, and more.
• Examples include SQF (Safe Quality Food), ISO 26262 (Car Parts), FDA (USA), CE (EU), BIS (India), and many others.

2. Differentiated Financial Assistance for MSMEs

• Financial support is now differentiated by MSME classification:
  1. Micro and Small Enterprises: Up to 95% of the actual cost (net of taxes, duties, and cess) or the notified ceiling, whichever is lower.
  2. Medium Enterprises: Up to 80% of the actual cost (net of taxes, duties, and cess) or the notified ceiling, whichever is lower.
• The maximum cumulative reimbursement is now ₹50 lakh per Importer Exporter Code (IEC) per financial year. Support exceeding ₹50 lakh may be considered on a case-by-case basis.

3. Two-Stage Disbursement Process

• Approved financial support will be disbursed in two instalments:
  1. First Instalment: 50% upon successful completion of certification and submission of the relevant certificate.
  2. Second Instalment: 50% upon completion of exports linked to the relevant certification.

4. Revised Reimbursement Claim Procedure

• The reimbursement claim process is now split into two stages:
  • RC-1: After obtaining certifications, test reports, and compliance documents, the first claim is filed online with supporting documents.
  • RC-2: After demonstrating exports linked to the certification, the second claim is filed online with evidence of exports and proof of realisation.

5. Timelines and Lapse of Claims

• If an applicant fails to submit a reimbursement application within 2 years of their intent-to-claim, the claim lapses and the applicant becomes ineligible for the next financial year.
• If the first instalment is disbursed but evidence of exports is not submitted within 2 years, the second instalment lapses and the first may be recovered.

6. Governance and Oversight

• The Sub-Committee will continue to recommend financial assistance levels, review the list of eligible certifications, and oversee support for merchant exporters.

Expanded List of Certifications: A Snapshot

The new Annexure-I includes certifications such as:

• International: SQF, RSPO, ISO 26262, SMETA, GOTS, HACCP, ISO 9001, Fair Trade, Rainforest Alliance, etc.
• Country-Specific: FDA (USA), CE (EU), BIS (India), CCC (China), SII (Israel), TISI (Thailand), SABS (South Africa), etc.
• Sectoral Coverage: Agriculture, food, electronics, textiles, medical devices, chemicals, construction, automotive, and more.

Impact for Indian Exporters

• Broader Market Access: With a wider range of certifications eligible for support, Indian exporters can target more international markets and sectors.
• Enhanced Financial Support: Differentiated and increased reimbursement ceilings make compliance more affordable, especially for MSMEs.
• Streamlined Processes: The two-stage claim and disbursement process ensures timely support and accountability.

How to Apply

1. Check Eligibility: Refer to Annexure-I for the updated list of certifications.
2. Obtain Certification: Complete the required testing, inspection, or certification.
3. File RC-1: Submit the first reimbursement claim online with all supporting documents.
4. Export Products: Complete exports linked to the certification.
5. File RC-2: Submit the second claim with export evidence and proof of realisation.

Conclusion

The amendments to the TRACE Guidelines under EPM – Niryat Disha represent a major step forward in supporting Indian exporters. By expanding the scope of eligible certifications, differentiating financial support, and streamlining procedures, the government aims to boost India’s export competitiveness and compliance with global standards.

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Source: DGFT

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