DGFT Updates Import Policy: Amendments to ITC (HS) 2022 in Sync with Finance Act 2026

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Dated: 23.07.2026

DGFT Updates Import Policy: Amendments to ITC (HS) 2022 in Sync with Finance Act 2026

India’s Directorate General of Foreign Trade (DGFT) has issued Notification No. 24/2026-27, introducing significant amendments to the ITC (HS) 2022 Schedule-I (Import Policy) in alignment with the Finance Act, 2026. This article provides a comprehensive overview of the changes, their implications, and actionable insights for importers and stakeholders.

Overview of the Notification

The Central Government, exercising its powers under the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade Policy (FTP) 2023, has updated the import policy to synchronize with the Finance Act, 2026. The amendments are effective immediately and are detailed in two annexures:

Annexure-1: Lists ITC (HS) codes with inserted, deleted, amended, split, or merged entries, along with updated policy conditions.
Annexure-11: Provides revised descriptions for specific ITC (HS) codes.

The updated policy is available on the DGFT website (https://dgft.gov.in).

Key Changes in ITC (HS) Codes and Import Policy

1. Deletions and Insertions

Numerous ITC (HS) codes have been deleted, particularly for items where the classification or policy has been restructured.
New codes have been inserted or split to provide greater specificity, especially for agricultural products, chemicals, and industrial goods.

2. Policy Status Updates

Many items previously under restricted or ambiguous status are now marked as “Free” for import, simplifying procedures for importers.
Some items remain subject to specific policy conditions, such as the requirement for a No Objection Certificate (NOC) from relevant authorities (e.g., Narcotics Commissioner for certain chemicals).

3. Examples of Notable Amendments

Agricultural and Food Products

Frozen Krill (03061910), Pecan Nuts (08029910), Cranberries (08104010), Blueberries (08104020): Now classified as “Free” for import.
Fruit Juice and Milk-Based Drinks (22029921, 22029931): Cranberry products and other fruit-based beverages are now “Free”.

Chemicals and Extracts

Plant Extracts (13021921–13021939): Extracts of Withania somnifera, Bacopa monnieri, and others are now “Free”.
Acetyl Chloride (29159011), Malonic Acid (29171921), Piperidine (29333220): Now “Free” for import.
Certain chemicals (e.g., Lysergic acid, Pseudoephedrine, Norephedrine): Free but subject to NOC or policy conditions.

Industrial and Miscellaneous Goods

Non-Galvanised Iron Pipes (73051119, 73051219, etc.): Now “Free” for import, with revised descriptions for clarity.
Reverse Osmosis (RO) Membrane Elements (85079020): Now “Free”.
Containers for Transport (86090010, 86090090): Now “Free”.

4. Revised Descriptions

Several ITC (HS) codes have updated item descriptions for better clarity and alignment with international standards.

Implications for Importers and Stakeholders

Simplified Import Procedures:
- The shift of many items to “Free” status reduces the need for licenses and approvals, expediting import processes.
Enhanced Clarity:
- Revised descriptions and code restructuring help importers correctly classify goods, minimizing compliance risks.
Compliance Requirements:
- Importers must still adhere to specific policy conditions for sensitive items (e.g., chemicals requiring NOC).
Immediate Effect:
- All changes are effective immediately, requiring importers to update their documentation and processes without delay.

How to Access the Updated Policy

The full, updated ITC (HS) 2022 Schedule-I (Import Policy) is available on the DGFT website.
Importers should review the annexures for detailed code-wise changes and ensure their import documentation reflects the latest amendments.

Conclusion

Notification No. 24/2026-27 marks a significant step in aligning India’s import policy with the latest Finance Act, streamlining trade, and enhancing transparency. Stakeholders are advised to familiarize themselves with the updated codes and policy conditions to ensure smooth and compliant import operations.

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Source: DGFT

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