Newsletter - MAY 2026

1. DGFT Fast-Tracks Chemical Exports with New Standard Input Output Norms

The Directorate General of Foreign Trade (DGFT) has officially notified four new Standard Input Output Norms (SIONs) under the "Chemical and Allied Product" category through Public Notice No. 6/2026-27, dated May 4, 2026. These new entries, spanning SION numbers A-3698 to A-3701, establish standardized import-export ratios for key pharmaceutical and chemical products, including Cefuroxime Sterile Sodium and Tobramycin Nebuliser Solution. By formalizing these norms, the government enables Regional Authorities to grant Advance Authorisations directly, bypassing the previous requirement for time-consuming, case-by-case referrals to the Norms Committee. This strategic update is intended to significantly expedite approval timelines and ensure greater uniformity in decision-making, providing a more predictable and efficient regulatory environment for Indian exporters.

2. CBIC Extends Trade Relief Measures Amid Strait of Hormuz Maritime Disruptions

In a proactive move to support the trade community, the Central Board of Indirect Taxes & Customs (CBIC) issued Circular No. 22/2026-Customs on May 4, 2026 , providing a critical extension of relief measures necessitated by ongoing maritime route disruptions. Invoking powers under Section 143AA of the Customs Act, 1962 , the Board has extended the validity of six previous facilitative circulars issued between March and April 2026 to mitigate challenges stemming from the closure of the Strait of Hormuz. These regulatory facilities, originally designed to ease the burden on importers and exporters facing transit delays and logistical hurdles, will now remain in force until May 15, 2026. By maintaining these terms and conditions unchanged , the government aims to provide continued regulatory certainty and operational flexibility for stakeholders navigating the current geopolitical volatility in international shipping lanes.

3. DGFT Extends Ad-hoc Norms Validity: A Long-Term Win for Export Predictability

The Directorate General of Foreign Trade (DGFT) has further streamlined the Indian export landscape by significantly extending the lifespan of established ad-hoc norms. Through Public Notice No. 07/2026-27, issued on May 5, 2026, the government amended Paragraph 4.12 (vi) of the Handbook of Procedures (HBP) 2023 to provide much-needed regulatory continuity for the trade community. Under this updated directive, ad-hoc norms ratified by any Norms Committee on or after April 1, 2015 previously facing a staggered expiration are now unified and valid until March 31, 2028. This allows exporters to continue leveraging these ratified norms on a repeat basis for Advance Authorisations, effectively bypassing the administrative burden of seeking fresh approvals for established processes. By extending this window, the DGFT aims to lower transaction costs and bolster the "Ease of Doing Business" initiative through enhanced policy stability.

4. India-Bhutan Trade Connectivity Strengthened with New Samrang Land Crossing

The Government of India has expanded the official infrastructure for cross-border commerce by designating a new land frontier route to facilitate trade with Bhutan. Through Notification No. 43/2026-Customs (N.T.), issued on May 6, 2026, the Central Board of Indirect Taxes and Customs (CBIC) amended the principal notification (No. 63/1994-Customs) to incorporate an additional entry for the Bhutanese land border. This regulatory update formally recognizes the Tamulpur-Dimakuchi motorable road, which connects Samrang in India to Samrang in Bhutan, as an authorized path for the movement of goods. By integrating this route under the Rangia jurisdiction, the government aims to diversify transit options and bolster regional logistics, providing traders with a strategic passage to enhance the efficiency of bilateral trade operations.

5. CBIC Streamlines Safeguard Duty Exemptions for Steel Imports with New Digital Identifiers

The Central Board of Indirect Taxes and Customs (CBIC) has introduced a streamlined digital procedure for claiming exemptions on steel imports through Circular No. 23/2026-Customs, issued on May 7, 2026. This administrative update facilitates the implementation of safeguard duties on "Non-Alloy and Alloy Steel Flat Products" by providing a structured framework for existing exemptions based on price thresholds, country of origin, and product type. To prevent the erroneous levy of duties and ensure swift port clearances, the CBIC has established mandatory "INFO_CD" qualifiers that importers must declare in the Single Window Table of the Bill of Entry. These codes specifically identify goods that exceed minimum CIF value thresholds or originate from approved developing countries, effectively automating the verification process. By transitioning to this system-based validation, the government aims to harmonize customs operations across the country while significantly reducing the transactional friction for legitimate importers of specialized steel products.

6. DGFT Expands Pre-Shipment Inspection Network to Bolster Import Quality Controls

The Directorate General of Foreign Trade (DGFT) has significantly updated the roster of authorized inspection bodies through Public Notice No. 08/2026-27, dated May 8, 2026. This comprehensive update notifies the enlistment of 14 new Pre-Shipment Inspection Agencies (PSIAs) into Appendix-2G, alongside the addition of specialized hand-held radiation survey meters for existing agencies to enhance their technical inspection capabilities. Furthermore, the notice formalizes administrative changes—including name and address updates for established entities—and grants validity extensions for several key agencies through late 2027. By expanding and modernizing this inspection network, the DGFT aims to streamline the verification process for regulated imports, ensuring higher safety standards and improved operational efficiency for the Indian trade community.

7. CBIC Updates Exchange Rates and Tariff Values for Key Commodities

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 45/2026-Customs (N.T.) on May 8, 2026, to revise the base tariff values used for calculating import duties on a variety of essential commodities. Exercising its powers under Section 14(2) of the Customs Act, 1962, the Board has updated the valuation tables for various edible oils, brass scrap, and precious metals. Notably, while several products saw adjustments in their US Dollar-denominated tariff values per metric tonne, the rates for Gold bars and Areca nuts remained unchanged from previous levels. These revised valuations, which align domestic tax assessments with international market price fluctuations, are set to come into force starting May 9, 2026.

 8. Rajasthan Plugs Into the Future: First Semiconductor Cluster Inaugurated in Bhiwadi

In a definitive move to position Rajasthan as a premier industrial destination, Chief Minister Bhajanlal Sharma officially inaugurated the state's first semiconductor cluster at Bhiwadi on Friday, May 15, 2026. This landmark development is backed by the strategic implementation of 35 pro-investment policies over the past two years, establishing a highly competitive, industry-friendly environment . The launch was accompanied by the inauguration and foundation laying of critical regional projects, including the Elsina Electronics Complex and a 34 MLD sewage treatment plant in the Khairthal-Tijara district . Backed by Union Ministers Ashwini Vaishnaw and Bhupender Yadav, the initiative directly aligns with India's broader electronic manufacturing surge—which now boasts 12 chip-producing plants nationwide—and establishes Bhiwadi as a major manufacturing hub alongside its existing automobile sector . To further support this ecosystem, the state is accelerating infrastructure integration by connecting Rajasthan to Delhi via the Regional Rapid Transit System (RRTS), advancing the Yamuna water agreement, planning a major industrial area near Bandikui, and scaling renewable wind and solar energy infrastructure to ensure a sustainable power supply for incoming stakeholders . (Source - Economic Times)

9. New Shipper Review Triggers Provisional Anti-Dumping Assessment on Chinese Solar Panel Frames

The Ministry of Finance has issued Notification No. 07/2026-Customs (ADD) on May 19, 2026, ordering the provisional assessment of imports of "Anodized Aluminium Frames for Solar Panels/Modules" originating from or exported by M/s Anhui Krant Aluminum Products Co., Ltd from China PR . This directive follows a "new shipper review" initiated by the Directorate General of Trade Remedies (DGTR) to evaluate whether this specific exporter qualifies for an individual dumping margin deviation from the definitive anti-dumping duties originally imposed under Notification No. 16/2024-Customs (ADD) . Pending the final outcome of the DGTR's investigation, customs authorities will subject these imports to provisional assessment, requiring importers to provide a security or financial guarantee to cover potential retrospective duty liabilities should a definitive tax be reintroduced upon completion of the review .

10. CBIC Maintains Base Tariff Values for Essential Commodities and Precious Metals

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 47/2026-CUSTOMS (N.T.) on May 19, 2026, amending the baseline assessment values for calculating import duties on key commodities. Effective from May 20, 2026, this statutory update revises the standard valuation tables for edible oils, palm products, brass scrap, precious metals, and areca nuts, keeping the underlying valuation rates unchanged across all major segments. By standardizing these base import values such as retaining gold at USD 1,508 per 10 grams and crude palm oil at USD 1,205 per metric tonne, the notification provides immediate operational clarity and administrative stability for customs officers and trade stakeholders handling bulk imports.

11. Government Issues Clerical Amendments to Customs Tariff Classifications

The Ministry of Finance published a formal Corrigendum on May 19, 2026, to rectify specific clerical errors found within the previously issued Notification No. 14/2026-Customs dated April 30, 2026. This corrective update addresses minor textual discrepancies, adjusting legislative terminology on page 40 from "inserted" to "substituted" and amending a specific commodity code from "2202 91 29" to "2202 99 29". Additionally, the document inserts a missing entry concerning Notification No. 45/2025-Customs to accurately align subheading entry "2841 90" across serial numbers 110A and 110B in Table I. These precise administrative amendments ensure strict legal accuracy and proper regulatory application for trade stakeholders utilizing the updated tariff tables.

12. DGFT Launches Digital Single-Window for Agarwood Export Certification

The Directorate General of Foreign Trade (DGFT) has issued Trade Notice No. 05/2026-27 on May 22, 2026, announcing the operationalization of a dedicated online module for issuing Certificates of Origin (CoO) for Agarwood exports on the Trade Connect ePlatform (TCEP). Aligned with Para 1.07 of the Foreign Trade Policy, this digital initiative establishes a paperless single-window interface to validate the legal origin and chain of custody for Agarwood, ensuring strict compliance with international mandates like the Convention on International Trade in Endangered Species (CITES). Mandatory for all trade submissions starting May 25, 2026, the newly integrated workflow electronically routes exporter applications to jurisdictional Divisional Forest Officers (DFOs) for physical inspections before final electronic approval and generation by State Nodal Officers.

13. DGFT Initiates Review and Reallocation of Pharma-Grade Sugar Export Quotas

The Directorate General of Foreign Trade (DGFT) has issued Trade Notice No. 04/2026-27 in May 2026, launching a comprehensive review of the utilization of allocated export quotas for pharma-grade sugar. In continuation of Trade Notice No. 06/2025-26, the Special EXIM Facilitation Committee (SEFC) requires all pre-allocated exporters to submit a Chartered Accountant-certified utilization certificate alongside documented justification for any additional quota requirements via the online DGFT IT portal within 10 days. Existing authorizations demonstrating over 50% utilization will be eligible for a six-month extension, whereas underutilized quotas below the 50% threshold will automatically revert to a common pool for proportional reallocation among active trade stakeholders.

14. India Sets Export Quota for Raw Cane Sugar to USA Under Preferential TRQ Scheme

The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 12/2026-2027 on May 22, 2026, announcing the allocation of 8,606 Metric Tons Raw Value (MTRV) of raw cane sugar for export to the United States. Operating under the Tariff Rate Quota (TRQ) scheme for the US fiscal year 2026 (spanning October 1, 2025, to September 30, 2026), the allocation permits the tariff-restricted export of sugar under HS Code 17010000. The Agriculture and Processed Food Products Export Development Authority (APEDA) in New Delhi has been designated as the primary implementing agency to monitor and operate this quota, while the Additional DGFT in Mumbai remains responsible for issuing necessary Certificates of Origin based on APEDA's eligibility recommendations

15. India and Ethiopia Sign Landmark Bilateral Protocol to Advance Addis Ababa’s WTO Membership

In a major step toward integrating East Africa into the global trading system, India and Ethiopia officially signed a bilateral World Trade Organization (WTO) accession protocol on Friday, May 22, 2026, in Geneva. Fast-tracked under the directive of Union Commerce Minister Piyush Goyal, this landmark agreement is designed to substantially boost bilateral trade and investment by establishing mutually agreed market access commitments. The successful negotiation follows the recent elevation of their diplomatic ties to a Strategic Partnership in December 2025 during Prime Minister Narendra Modi’s visit to Ethiopia. As Ethiopia’s second-largest trading partner and one of its leading foreign investors, India's protocol signature effectively propels Addis Ababa into the advanced stages of its formal WTO accession process, helping align its domestic economic policies with standardized multilateral trade rules.

16. India Updates Tariff Values for Edible Oils, Metals, and Areca Nuts 

The Ministry of Finance, Department of Revenue, has issued Notification No. 49/2026-CUSTOMS (N.T.) on May 29, 2026, introducing key amendments to base tariff values for several imported commodities. Effective from May 30, 2026, these revisions adjust the assessment values for crucial imports including crude and refined palm oils, palmolein varieties, crude soya bean oil, brass scrap, and silver. Notably, the tariff values for gold and areca nuts remain unchanged. Importers, customs brokers, and trade stakeholders must immediately align their valuation models with these updated benchmarks to ensure accurate customs duty calculations and avoid compliance disruptions at ports of entry.

17. Seamless Transition: India-Oman CEPA Certificates of Origin Move Electronic

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has released Trade Notice No. 06/2026-2027 dated May 29, 2026, announcing the electronic filing and issuance of Preferential Certificates of Origin (CoO) under the upcoming India-Oman Comprehensive Economic Partnership Agreement (India-Oman CEPA). Coinciding with the agreement's enforcement on June 01, 2026, all preferential CoO applications for exports to Oman must be processed digitally via the Trade Connect ePlatform (www.trade.gov.in). Exporters can utilize their existing DGFT credentials to log in, select the "India Oman CEPA (Agency Issued)" option, and obtain a digitally signed "Electronic Copy" complete with a QR code and official stamps upon agency approval. This digital transition streamlines cross-border trade, ensures rapid verification for international customs authorities, and eliminates administrative bottlenecks for the trading community.

18. Policy Shift: DGFT Revises Standard Input Output Norms for Chemical Sector

The Directorate General of Foreign Trade (DGFT), functioning under the Ministry of Commerce & Industry, has published Public Notice No. 13/2026-27 dated May 29, 2026, announcing immediate updates to the Standard Input Output Norms (SIONs) for the Chemical and Allied Products sector. Exercising authority under the Foreign Trade Policy-2023, the revision specifically modifies the input-output efficiency benchmarks for export products listed under Group 'A', including SION-A1090, A1794, A1827, A3105, A3106, and A3107. These updated technical input ratios span essential industrial chemicals like Caustic Soda, Gelatine, Ossein, and various grades of Chlorinated Paraffin sorted by chlorine content. Chemical exporters and manufacture-vane stakeholders must align their duty exemption and import entitlement calculations with these newly enforced input ceilings to remain compliant with Indian trade logistics.