Newsletter V5 (9/6/25)

Your Guide To The Latest Insights, Trends, And Updates In The World Of Trade and Customs

Stay informed with this month’s key updates from DGFT, Customs, and related trade authorities. Below is a comprehensive roundup of critical policy changes, compliance alerts, and incentives relevant to Indian importers, exporters, and manufacturers.

TRADE AND POLICY UPDATES

1. Importer Exporter Code (IEC) Compliance

IEC Update Deadline: Are You Compliant?

As June 30th, 2025 nears, every importer and exporter in India must complete a critical compliance step: updating their Importer Exporter Code (IEC). The Directorate General of Foreign Trade (DGFT) mandates that all IEC holders verify and update their details annually between April 1st and June 30th, even if there are no changes. Missing this deadline can lead to deactivation of your IEC, halting your international trade operations.

2. RoDTEP Benefits Reinstated for Select Exporters

The Indian government has announced important updates to the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for FY 2025–26, aimed at strengthening the export sector.

• Budget Allocation: ₹18,233 crore allocated, covering over 10,750 product categories.

• Restoration of Benefits: From June 1, 2025, RoDTEP benefits are reinstated for exporters under Advance Authorisation, Export Oriented Units (EOUs), and Special Economic Zones (SEZs).

• Rates: RoDTEP rates range between 0.3% and 4.3%, depending on the product.

• Total Disbursements: Over ₹57,976.78 crore disbursed as of March 31, 2025.

• Compliance: The scheme complies with WTO norms and operates on a digital platform ensuring transparency.

3. Special Economic Zones (SEZ) & Manufacturing

Reduced Land Requirement for Semiconductor & Electronics SEZs

To boost India’s electronics manufacturing, the government has lowered the minimum contiguous land requirement for SEZs dedicated solely to semiconductor and electronic component manufacturing from 50 hectares to 10 hectares.

• Expanded Definition: Now includes display modules, camera modules, battery assemblies, printed circuit boards, Li-ion cells, mobile/IT hardware, hearables, and wearables.

• Land Encumbrance Flexibility: Board of Approval may relax conditions on encumbrance-free land if mortgaged or leased to government agencies.

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CUSTOMS UPDATES

1. Customs Tariff Update – Edible Oil Sector

To curb inflation and stabilise domestic prices, the Government of India has halved the basic customs duty on key crude edible oils—including palm, soybean, and sunflower oil—from 20% to 10%, effective May 31, 2025. This aims to boost supply ahead of festive demand, benefiting consumers and importers in the FMCG and agricultural import sectors.

2. Tightening of Gold Import Regulations under CEPA

Effective May 19, 2025, India has imposed new restrictions on imports of gold and silver in unwrought, semi-manufactured, and powdered forms. Imports are now permitted only through nominated agencies, qualified jewellers, and valid tariff rate quota (TRQ) holders under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

• Purpose: To prevent misuse of CEPA, particularly the exploitation of lower duties by importing gold disguised as platinum alloys.

• New HS Codes: Introduced for platinum containing at least 99% platinum to clarify duty benefits.

• TRQ: India agreed to import up to 200 metric tonnes of gold annually from UAE with a 1% tariff concession under TRQ.

3. Customs Duty Exemption on Select Imported Works of Art and Antiquities

The Ministry of Finance issued Notification No. 29/2025-Customs dated May 9, 2025, granting full exemption from basic customs duty on select imported artworks, statuary, memorials, and antiquities under specific conditions:

• Eligible Items: Artworks for public exhibition in museums/galleries, public memorials, and antiquities (as defined under the Antiquities and Art Treasures Act, 1972).

• Conditions: Importers must be museum or gallery operators; items are for public display only, not for sale; certification from Ministry of Culture’s Authorized Officer required; antiquities must be registered with ASI within 90 days of import.

• This exemption supports cultural institutions by easing import duties.

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IMPORT AND EXPORT POLICY AMENDMENTS

1. Extension of Import Policy for Yellow Peas

The DGFT has extended the import policy for Yellow Peas (ITC HS Code 07131010) until March 31, 2026. Imports remain "Free" with no Minimum Import Price (MIP) and no port restrictions, subject to registration under the Import Monitoring System (IMS). This applies to consignments with Bill of Lading issued on or before March 31, 2026.

2. Removal of Port Restrictions for Leather Products

The DGFT has removed port restrictions and testing requirements for exports of the following leather products:

• Finished Leather

• Wet Blue Leather

• EI Tanned Leather

• Crust Leather

This simplification aims to enhance ease of doing business and accelerate export processes for leather exporters.

3. Revised Import Policies for Cabinet Hinges and Roller Chains

Effective May 26, 2025, DGFT has classified certain imports as "Restricted," requiring valid import authorisation:

• Cabinet Hinges: HSN codes 83021010, 83021090, 83024200, 83024900 with CIF value less than ₹280/kg.

• Roller Chains & Parts: HSN codes 73151100, 73151900, 73159000 with CIF value less than ₹235/kg.

4. Updated Import Policy for Precious Metals

Aligned with the Finance Act, 2025, effective May 19, 2025, import of certain precious metals (gold, silver, platinum under specified HSN codes) is subject to revised tariff rate conditions and updated import procedures. Importers should consult the latest customs and DGFT notifications for compliance.

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BIS UPDATES

New Quality Control Order for Electrical Appliances – Effective March 2026

The Department for Promotion of Industry and Internal Trade (DPIIT) has issued the Safety of Household, Commercial and Similar Electrical Appliances (Quality Control) Order, 2025, to be enforced from 19 March 2026. This QCO replaces the 2024 order and mandates BIS certification under Scheme-I for a wide range of electrical appliances.

Applicable Products Include (illustrative list):

1) Vacuum cleaners

2) Cooking ranges and ovens

3) Electrical shavers

4) Tumbler dryers and dishwashers

5) Warming plates and frying pans

6) Massage appliances

7) Fabric steamers

8) Electrical heating tools and clothes dryers

However, the list of products provided in the QCO is merely illustrative, and any electrical appliance with a rated voltage not exceeding 250V for single-phase alternating current or 480V for other appliances, including direct current and battery-operated devices, can be covered under the ambit of the QCO.

Phased Implementation:

Small enterprises: 19 June 2026

Micro enterprises: 19 September 2026

Exclusions:

Export goods, R&D imports (up to 200 units), goods under other QCOs, and pre-implementation stock (subject to conditions).

While this move is expected to improve safety standards and consumer confidence, businesses should prepare for certification costs and compliance timelines.