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Newsletter - April 2026

  • Writer: Commercial Consultancy Counsel
    Commercial Consultancy Counsel
  • May 28
  • 14 min read

1. India Tightens Export Controls on Wood Pellets and Briquettes

The Directorate General of Foreign Trade (DGFT) has announced a significant shift in the export landscape for bio-fuel products through Notification No. 04/2026-27, issued on 06 April, 2026. Effective immediately, the Central Government has amended the export policy for Wood Pellets (HS 44013100) and Wood Briquettes (HS 44013200) under Chapter 44 of the ITC (HS) 2022. Specifically, the status of Wood Pellets has been modified from "Prohibited" to "Restricted," while Wood Briquettes have moved from a "Free" export category to "Restricted". This regulatory change means that stakeholders can no longer export these items without specific permission; instead, all future shipments will strictly require a formal Restricted Export Authorization. This update ensures a unified regulatory oversight for wood-based waste and scrap, bringing both items under the same licensing requirements to better monitor the outflow of these resources.

 

2. New Customs Gateway Operationalized at Panoli, Gujarat

The Central Board of Indirect Taxes and Customs (CBIC) has officially expanded the logistics infrastructure in Gujarat by designating Panoli, Bharuch, as a new station for international trade operations. Issued via Notification No. 36/2026 - Customs (N.T.) on 06th April, 2026, this amendment to the principal Notification No. 12/97-Customs (N.T.) authorizes the Panoli site for the critical functions of unloading imported goods and loading export goods. By integrating this location into the customs network, the government aims to enhance the "Ease of Doing Business" for the industrial belt of Bharuch, providing local businesses with more direct access to global supply chains and reducing the transit time for cross-border cargo. This move reflects a continued effort to strengthen the state's trade capacity and streamline port-related formalities for the manufacturing sector.

 

3. Digital Shift: DGFT Mandates Electronic Issuance for Certificates of Origin

The Directorate General of Foreign Trade (DGFT) has formalized a complete transition toward digital trade documentation through Public Notice No. 01/2026-27, issued on 07 April 2026. This update amends Para 2.90 of the Handbook of Procedures (HBP) 2023 to mandate that all authorized agencies must process and issue Certificates of Origin (CoO) exclusively through the designated electronic platform at https://www.trade.gov.in or other DGFT-designated portals. While the classification of CoOs into preferential and non-preferential categories remains unchanged, the notification explicitly prohibits manual issuance outside of the official online system. Authorized agencies, which are listed across Appendices 2B through 2E, must comply with this digital-only requirement or risk the revocation of their authorization to issue these critical trade instruments. This directive aims to modernize the verification of goods' origin and enhance transparency across India’s international trade operations.

 

4. DGFT Mandates Automated Verification and Refines Self-Certification Rules

The Directorate General of Foreign Trade (DGFT) has introduced critical updates to trade documentation protocols through Notification No. 05/2026-27, issued on 07 April 2026, to enhance transparency and streamline export clearances. A significant directive in this amendment to Para 2.62 of the Foreign Trade Policy 2023 mandates that all Import Export Code (IEC) holders must utilize identical invoice numbers across both their Certificates of Origin (CoO) and corresponding Shipping Bills. This synchronization is specifically designed to enable seamless automated utilization verification by authorities. Furthermore, the notification clarifies that CoOs can strictly only be issued by agencies authorized by the DGFT. The amendment also details the "Approved Exporter Scheme," allowing manufacturers who are Status Holders to self-certify their manufactured goods as originating from India to secure preferential treatment under various trade agreements. However, stakeholders should note that while the framework for self-certification is now defined, it will only become operational as India incorporates the scheme into specific bilateral agreements with partner nations and issues subsequent notifications.

 

5. India Updates Anti-Dumping Duty Registry for Chinese Industrial Laser Machines

The Ministry of Finance has issued Notification No. 04/2026-Customs (ADD) on 8th April, 2026, to implement administrative amendments regarding anti-dumping duties (ADD) on industrial laser machines imported from China PR. This directive modifies the principal Notification No. 15/2023-Customs (ADD) to officially recognize a name change for a key Chinese producer listed in the duty schedule. Specifically, the entity formerly known as "Bystronic (Shenzhen) Laser Technology Co., Ltd" will now be identified as "DNE LASER (Guangdong) Co., Ltd." in the official records. The designated authority confirmed that this transition involves no fundamental changes to the company’s ownership, management, or legal structure, ensuring that the existing protective duty remains consistently applied. For importers and customs brokers, this update is vital for the accurate classification and assessment of duties on laser machines used for cutting, marking, or welding under various tariff headings.

 

6. Description Alignment for HS Code 73181500

The Directorate General of Foreign Trade (DGFT) has issued Notification No. 06/2026-27 on April 9, 2026 , to refine the scope of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. This update corrects the description for HS Code 73181500 in Appendix-4R and Appendix-4RE of the Handbook of Procedures , shifting from a narrow focus on "Screw for use in manufacture of cellular mobile phone" to the broader classification of "Other screws and bolts, whether or not with their nuts or washers". Aimed at ensuring consistency with the First Schedule to the Customs Tariff Act, 1975 , this amendment is notably effective retroactively from December 15, 2022. This alignment simplifies the export process for manufacturers of industrial fasteners by synchronizing trade policy descriptions with standard customs classifications, ensuring accurate benefit claims for a wider range of products under this tariff line.

 

7. Customs Eases SEZ Cargo Handling Amid Strait of Hormuz Crisis

The Central Board of Indirect Taxes & Customs has introduced a simplified regulatory framework via Circular No. 19/2026-Customs, dated 10th April 2026, to assist exporters dealing with maritime disruptions following the closure of the Strait of Hormuz. This directive streamlines the management of export cargo originating from Special Economic Zones (SEZs) that is currently stalled at gateway ports, allowing for the cancellation of Let Export Orders (LEO) and Shipping Bills through the originating SEZ without requiring containers to be physically returned to the zone. To further alleviate port congestion and facilitate trade, the Board has authorized the de-stuffing and storage of such cargo in Customs Bonded Warehouses at the gateway port and emphasized the use of electronic communication to speed up processing. These emergency trade facilitation measures, designed to provide operational flexibility and minimize costs for affected stakeholders, are set to remain in effect through 30th April 2026.

 

8. RoDTEP and RoSCTL Aligned with Duty Drawback Standards

The Central Board of Indirect Taxes & Customs (CBIC) has issued Circular No. 20/2026-Customs on 10th April, 2026, providing essential clarifications to streamline the RoDTEP and RoSCTL schemes for the exporting community. This update confirms that these schemes will now follow the same standards as duty drawback regarding export proceeds, allowing for full remission on the Free on Board (FOB) value without the deduction of agency commissions or foreign bank charges, provided these costs do not exceed a 12.5% threshold. Furthermore, the government has simplified the handling of short-realized sale proceeds by recognizing compensation from the Export Credit Guarantee Corporation (ECGC) as valid realization. This ensures that exporters will not face the recovery of their benefits, provided the Reserve Bank of India (RBI) writes off the realization requirement and the exporter secures a certificate from the relevant Indian Foreign Mission confirming the non-recovery.

 

9. DGFT Invites Applications for Petroleum Coke Allocation

The Directorate General of Foreign Trade (DGFT) has officially opened the application window for the allocation of import quotas for Calcined Petroleum Coke (CPC) and Raw Petroleum Coke (RPC) for the 2026-27 financial year. Per Public Notice No. 02/2026-27, dated 10th April, 2026, the government has capped the import of CPC for the aluminium industry at 0.8 million metric tonnes (MTs) and RPC for CPC manufacturing units at 1.9 million MTs, following directives from the Commission for Air Quality Management (CAQM). Eligible entities must submit their applications online through the DGFT’s Import Management System no later than 20th April, 2026. Allocation decisions will be determined based on processing capacity certificates as of February 2024 and previous quota utilization, with all approved imports required to clear customs by 31st March, 2027. This procedural update is vital for industrial stakeholders to ensure compliance with environmental guidelines while securing necessary raw materials for the upcoming fiscal year.

 

10. Extended Deadline for India-Mauritius and India-Nepal Trade Quota Applications

The Directorate General of Foreign Trade (DGFT) has officially extended the deadline for submitting online applications for Tariff Rate Quota (TRQ) benefits under the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) and the India-Nepal Treaty for the 2026-27 fiscal year. According to Public Notice No. 03/2026-27, issued on 10th April, 2026, the cutoff date has been moved to 25th April, 2026, granting businesses additional time to apply for import allocations across various product categories. The extension applies to a diverse range of items, from specialty sugar and apparel from Mauritius to vegetable fats and copper products from Nepal. Importers are reminded that while the timeline has shifted, all existing procedural requirements under the Foreign Trade Policy 2023—including the mandatory sourcing of Indian yarn or fabric for a significant portion of the Mauritius apparel quota—remain strictly in force.

 

11. Rice Export Update: Temporary Inspection Waiver for Select European Markets

The Ministry of Commerce and Industry has issued Notification No. 07/2026-27 on 10th April, 2026, introducing a strategic amendment to the export policy for both Basmati and Non-Basmati rice. Under the revised conditions, the mandatory requirement for a Certificate of Inspection from the Export Inspection Council (EIC) or Export Inspection Agency (EIA) is now strictly focused on shipments destined for EU Member States and specific nations including the UK, Iceland, Liechtenstein, Norway, and Switzerland. Crucially, for all other European countries, this inspection requirement has been suspended for a period of six months, effective immediately until 01st October, 2026. This move is expected to reduce compliance hurdles and accelerate trade with non-EU European markets during this temporary window.

 

12. Feather Exports: New Health Certification Standards for EU and UK Compliance

The Ministry of Commerce & Industry has updated the export regulations for specific feather and bird skin products to align with stringent international standards. According to Notification No. 08/2026-27, dated 10th April, 2026, exporters of stuffing feathers, down, and other bird parts must now comply with a new "Policy Condition 5" under Chapter 5 of the Export Policy. This amendment mandates that shipments destined for the EU or UK must be accompanied by a Veterinary or Shipment Clearance Certificate issued by CAPEXIL. Additionally, exporters are now required to provide a post-shipment "Production Process Certificate" or "Veterinary Health Certificate" detailing the product's origin, destination, and health requirements. These measures ensure that Indian feather exports meet the mandatory veterinary health requirements of importing nations while maintaining their "Free" export status.

 

13. Honey Exports Update: Minimum Export Price Validity Extended Through 2026

The Ministry of Commerce & Industry has announced a significant extension to the pricing regulations governing the export of honey to stabilize international trade. Per Notification No. 09/2026-27, dated 10th April, 2026, the Central Government has amended the export policy for Natural Honey under ITC(HS) code 04090000. The existing Minimum Export Price (MEP), which was previously set to expire on 31st March 2026, has now been extended to remain in effect until 31st December 2026. Under this directive, all exports of Natural Honey must continue to maintain a floor price of US Dollar 1400 FOB per Metric Ton. This measure ensures a consistent pricing strategy for Indian honey in the global market for the remainder of the calendar year.

 

14. New Interest Subvention Benefits for MSE Steel Exporters

The Directorate General of Foreign Trade (DGFT) has expanded the scope of the Export Promotion Mission (EPM) to provide significant financial relief to small-scale metal exporters. As per Trade Notice No. 01/2026-27, dated 20th April 2026, the government has officially included 167 specific tariff lines from Chapter 72 (Iron and Steel) under the Interest Subvention Support scheme for pre- and post-shipment export credit. This incentive is strictly limited to Micro and Small Enterprises (MSEs), with the notice clarifying that Medium Enterprises remain ineligible for support under these specific lines. To maintain the principle of non-retrospective applicability, the subvention is only admissible for eligible export credit disbursed on or after the date of this notice. This strategic inclusion aims to bolster the liquidity and competitive edge of Indian MSEs within the global steel trade.

 

15. De-notification of Facility in Tamil Nadu

The Ministry of Finance, Department of Revenue, has released Notification No. 39/2026 - Customs (N.T.) dated 20th April, 2026, to amend the primary customs notification governing authorized land and air customs stations. Exercising powers under the Customs Act, 1962, the Central Board of Indirect Taxes and Customs (CBIC) has directed the omission of item (viii) and its associated entry under serial number 11, which pertains to the State of Tamil Nadu. This regulatory change effectively de-notifies a specific facility within the state from the official list of stations approved for the unloading of imported goods and the loading of export goods. Traders and logistics providers active in the Tamil Nadu region must adjust their documentation and operational workflows to account for this removal of a sanctioned customs point to ensure continued compliance with federal revenue standards.

 

16. DGFT Launches Online Module to Streamline Post Export EPCG Scrips

The Directorate General of Foreign Trade (DGFT) has introduced a specialized online module to resolve long-standing operational hurdles faced by exporters in utilizing manually issued Post Export EPCG scrips. Announced via Trade Notice No. 02/2026-27 on 21st April 2026, this digital transition enables the electronic issuance, re-issuance, and validity extension of duty credit scrips directly through the DGFT portal. By facilitating a seamless, real-time data exchange between the DGFT and ICEGATE, the new module ensures that electronically issued scrips are immediately available for use at customs, eliminating the inefficiencies of offline processing. Regional Authorities (RAs) are now mandated to examine requests and generate scrips within this online framework, which automatically transmits the data to ICEGATE upon approval. This strategic move significantly enhances the ease of doing business by providing clear digital pathways for authorization closures and the re-validation of expired or untransmitted scrips.

 

17. Significant Hike in Duty Drawback Rates for Jewellery Exports

The Ministry of Finance has announced a substantial increase in duty drawback rates for key jewellery and precious metal categories to enhance the global competitiveness of Indian exporters. Under Notification No. 41/2026-- Customs (N.T.), dated 24th April, 2026, the government has amended the principal drawback schedule for Chapter 71, specifically targeting articles of jewellery and goldsmiths' wares. These revisions provide significantly higher rebate values for designated tariff items, effectively reducing the tax burden on export-oriented manufacturers and incentivizing increased production in the precious metals sector. Exporters should immediately update their financial projections to reflect these improved drawback margins, which represent a major upward shift from the rates previously established in late 2023.

 

18. India-New Zealand FTA: Doubling Bilateral Trade Through Strategic Market Access

The Federation of Indian Export Organisations (FIEO) has formally recognized the newly signed India-New Zealand Free Trade Agreement (FTA), as detailed in industry updates on April 27, 2026, as a pivotal catalyst for doubling bilateral trade volumes. This landmark pact is designed to widen market access for Indian exporters by reducing tariffs and simplifying regulatory procedures, specifically benefiting sectors such as textiles, engineering, pharmaceuticals, and agriculture. Notably, the agreement secures first-time market access for AYUSH products and establishes a Mutual Recognition Agreement (MRA) for organic certification, providing a significant competitive edge for Indian MSMEs looking to tap into high-value demand. Furthermore, the services sector is poised for growth through enhanced mobility provisions and mutual recognition of professional qualifications in IT, healthcare, and education, reinforcing India’s strategy to diversify export destinations and strengthen global supply chain linkages. (Source - Economic Times)

 

19. India Eases Wheat Export Restrictions with New 25 LMT Quota

The Government of India has introduced a strategic recalibration of its trade stance regarding essential food grains to balance domestic surplus management with international demand. According to Notification No. 13/2026-27 issued on 27 April, 2026, the Directorate General of Foreign Trade (DGFT) has authorized the export of an additional 25 Lakh Metric Tonnes (LMT) of wheat, even as the baseline export policy for the specified commodities remains classified as "Prohibited". This amendment applies specifically to Durum Wheat and other wheat varieties under HS codes 10011900 and 10019910, with the precise operational modalities for accessing this quota to be detailed in a forthcoming Public Notice. Furthermore, the government maintains its commitment to global food security by continuing to permit government-to-government exports based on official requests from foreign nations; these humanitarian shipments will be treated as separate from, and in addition to, the newly announced 25 LMT commercial window.

 

20. Refinement of HS Code Classifications for Countervailing Duties

The Ministry of Finance has issued Notification No. 01/2026-Customs (CVD) on 30th April, 2026, introducing key amendments to the existing countervailing duty (CVD) framework established by principal notification No. 04/2024-Customs (CVD). Effective from 1st May, 2026, this notification updates the identification of subsidized articles by substituting the existing HS code 7305 11 29 with two more specific classifications: 7305 11 41 and 7305 11 49. This administrative shift ensures that trade defense measures are accurately applied to the correct product sub-categories, preventing any ambiguity in the assessment and collection of duties on imported subsidized goods. Importers and trade stakeholders must ensure their documentation reflects these new codes to remain compliant with the updated regulatory requirements.

 

21. Broad Anti-Dumping Duty Realignment: DGFT Refines HS Code Classifications

The Ministry of Finance has issued Notification No. 06/2026-Customs (ADD) on 30th April, 2026, to streamline and update the classification of articles subject to anti-dumping duties across several key sectors. Effective from 1st May, 2026, this notification amends five prior directives to reflect more granular HS code substitutions, particularly impacting various chemical compounds and specialized steel products. By expanding existing codes such as 2924 29 90 and 2933 39 90 into more specific sub-categories, the government aims to ensure precise duty assessment and prevent misclassification during the import process. These technical adjustments represent a critical update for compliance officers and trade analysts, as they align the anti-dumping framework with the latest customs tariff nomenclature to maintain the integrity of trade defense measures.

 

22. Comprehensive Alignment of Customs Classifications: 23 Notifications Amended

The Ministry of Finance has enacted a massive administrative realignment of the customs tariff structure through Notification No. 14/2026-Customs, dated 30th April, 2026, which amends 23 different historical notifications to modernize HS code classifications. Effective from 1st May, 2026, this directive performs surgical substitutions across a vast array of product categories including chemicals, leather goods, machinery parts, and electronics to ensure that trade exemptions and duty rates remain consistent with current technical nomenclatures. The amendments target principal notifications issued between 2004 and 2026, frequently replacing single HS codes with multiple, more specific sub-headings (such as 8529 90 30 and 8529 90 90) or updating standard duty rates for items like beverage preparations and specialized paper products. For the international trade community, the changes detailed in Notification 14.pdf represent a critical compliance update that necessitates an immediate audit of shipping documentation and bill of entry filings to prevent misclassification and ensure accurate duty assessment.

 

23. CBIC Revises Import Tariff Values for Edible Oils and Precious Metals

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 42/2026-CUSTOMS (N.T.) dated 30th April, 2026, introducing updated tariff values for a variety of essential commodities including edible oils, brass scrap, and precious metals. Effective from 1st May, 2026, this directive substitutes the valuation tables originally established under Notification No. 36/2001-Customs (N.T.) to align import assessments with current global market trends. The revision impacts the calculation of ad valorem customs duties for key imports such as Crude Palm Oil, RBD Palmolein, Gold, and Silver, directly influencing the landing costs for Indian importers. While the tariff value for Areca nuts remains steady at $9155 per metric tonne, the recalibration of values for oils and metals necessitates immediate adjustments in financial planning for stakeholders across the supply chain.

 

24. Strategic Update: DGFT Outlines Modalities for 2.5 Million Tonne Wheat Export

The Directorate General of Foreign Trade (DGFT) has released Public Notice No. 05/2026-27 on 30th April, 2026, establishing the formal framework for the export of 25 LMT (Lakh Metric Tonnes) of wheat as previously sanctioned by the government. To ensure a streamlined and merit-based process, the DGFT has opened a strict ten-day application window from May 1 to May 10, 2026, requiring all eligible IEC holders to apply exclusively through the online Export Management System. The allocation strategy, managed by a Special Exim Facilitation Committee (SEFC), prioritizes large-scale exporters with high annual turnovers while also reserving specific quotas for State Trading Enterprises and MSME players to maintain a balanced trade ecosystem. Authorizations granted under this notice will remain valid for six months, subject to a performance review after three months where unutilized quotas specifically those below a 50% execution rate may be reallocated to more active shippers.

 

25. Trade Alert: Extension of Minimum Import Price on Virgin Multi-layer Paper Board

The Directorate General of Foreign Trade (DGFT) has issued Notification No. 14/2026-27 dated 30th April, 2026, which extends the existing Minimum Import Price (MIP) safeguards for specific paper products under Chapter 48 of the ITC HS, 2022. In a move to stabilize the domestic market, the Central Government has extended the MIP of INR 67,220 per Metric Tonne on a Cost, Insurance, and Freight (CIF) basis for Virgin Multi-layer Paper Board (VPB) through 30th September, 2026. This extension applies to five specific ITC (HS) codes and maintains all previously established terms and conditions from earlier notifications, ensuring that imports below this price floor remain restricted. Stakeholders in the paper and packaging industry should note that this directive, issued under the Foreign Trade Policy 2023, aims to prevent predatory pricing and support the domestic manufacturing of high-grade paper boards.

 

26. DGFT Aligns RoDTEP Schedules with 2026 Customs Tariff Amendments

The Directorate General of Foreign Trade (DGFT) has issued Notification No. 15/2026-27 on 30th April, 2026, to synchronize the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme with recent legislative changes in the Customs Tariff Act, 1975. Effective from 1st May, 2026, this update modifies Appendix 4R and Appendix 4RE by adding 142 new 8-digit tariff lines, deleting 50 obsolete lines, and revising the descriptions for two specific items to ensure administrative consistency with the Finance Act (No. 3 of 2026). These adjustments cover a wide range of sectors from marine products like Krill and specialized agricultural extracts to industrial chemicals and mechanical components ensuring that exporters of these newly classified goods can accurately claim duty remissions based on the updated rates and value caps now hosted on the DGFT portal.

 

 

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