Newsletter V7 (18/8/25)

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. United States Imposes 25% Secondary Tariff on Indian Goods

In a significant trade development, the United States President issued Executive Order 14329 on August 6, 2025, imposing a 25% secondary tariff on goods imported from India. This measure is intended to address India's direct and indirect importation of oil from the Russian Federation.

Key details of the tariff include:

• Effective Date: The tariff will take effect from 12:01 am eastern daylight time on August 27, 2025.

• Additional Levy: This 25% secondary tariff is in addition to the existing 25% reciprocal tariff on India and any other applicable duties and taxes.

Reasoning:

The executive order states that India's alleged resale of Russian oil enables the Russian Federation to fund its actions against Ukraine, posing a threat to the national security of the United States.

Exemptions:

The tariff will not apply to goods that were already loaded on a vessel and in transit before the effective date, provided they are entered for consumption in the US before September 17, 2025. Further exceptions apply to articles subject to Section 232 duties and other specific items.

2. CBIC Revises Tariff Values for Edible Oils, Precious Metals, and Other Goods

The Central Board of Indirect Taxes and Customs (CBIC), through Notification No. 49/2025-CUSTOMS (N.T.) dated July 31, 2025, has amended the tariff values for a range of imported goods. The notification, which came into force on August 1, 2025, substitutes Tables 1, 2, and 3 of the principal notification.

The revised tariff values are as follows:

Edible Oils and Brass Scrap

• Crude Palm Oil: 1012 US $ { per MT}

• RBD Palm Oil: 1035 US $ { per MT}

• Crude Palmolein: 1041 US ${per MT}

• RBD Palmolein: 1044 US $ { per MT}

• Crude Soya bean Oil: 1120 US $ { per MT}

• Brass Scrap (all grades): 5591 US $ { per MT}

Precious Metals

• Gold: 1063 US $ { per 10 grams}

• Silver: 1224 US $ { per kilogram}

Areca Nuts

• The tariff value for Areca nuts remains unchanged

3. DGFT Clarifies Import Clearance Rules, Eases Warehousing Norms

The Directorate General of Foreign Trade (DGFT) has issued a clarification to ease the import process and reduce costs for importers. In Policy Circular No. 02/2025-26 dated July 22, 2025, the DGFT addressed an issue where importers were being compelled to warehouse goods that had been shipped prior to the issuance of an import authorisation.

The circular clarifies that goods shipped or arrived in advance may be cleared directly for home consumption against an authorisation such as “Advance Authorisation” that is issued after the shipment date but before customs clearance. The mandatory requirement to first warehouse such goods has been removed, a move aimed at facilitating trade and reducing costs. This facility, however, does not apply to 'Restricted' items or goods traded through State Trading Enterprises (STEs) unless specifically permitted by the DGFT.

4. India Restricts Import of Jute Products from Bangladesh to Nhava Sheva Seaport

Effective immediately, the Government of India has placed port restrictions on the import of certain jute and textile products from Bangladesh. According to Notification No. 24/2025-26 issued by the DGFT on August 11, 2025, several categories of goods are impacted by this new regulation.

The following items are no longer allowed to be imported from Bangladesh through any land port on the India-Bangladesh Border and can only be cleared through the Nhava Sheva Seaport:

• HS Code 531090: Woven fabrics of Jute or of other textile bast fibre (bleached and unbleached).

• HS Code 560890: Twine, cordage, rope, etc. of Jute.

• HS Code 560790: Twine, cordage, rope, and cables.

• HS Code 630510: Sacks and bags of Jute.

5. DGFT Eases Export Process for Organic Textiles

The DGFT has removed the requirement for exporters of organic textiles to submit a Transaction Certificate (TC) at the time of export. Policy Circular No. 03/2025-26, dated July 31, 2025, deletes the relevant paragraph from a previous circular to implement this change.

This decision comes after stakeholders, including AEPC and TEXPROCIL, confirmed that under globally recognized standards like GOTS, the TC is only issued after the export is complete and post-shipment documents are available. The previous policy was not aligned with this industry practice and its removal simplifies the export process.

6. DGFT Expands Scope of General Authorisation for Chemical Exports (GAEC)

The DGFT has amended the Handbook of Procedures (HBP) 2023 to expand the scope of the General Authorisation for Export of Chemicals & Related Equipment (GAEC) policy. Public Notice No. 17/2025-26, dated July 30, 2025, revises Para 10.16 of the HBP to facilitate exports.

The key amendments are:

• The GAEC policy now extends to chemicals listed in a new Appendix 10(N) for export to specified countries.

• A new provision allows exporters to apply for GAEC for countries not listed in the appendix by submitting a list of their intended destinations for consideration.

• Exporters may also submit their Authorised Economic Operator (AEO) or Status Holder certificates, if available, as part of the process.

7. India Allocates Sugar Export Quota to EU for 2025-26

The DGFT has allocated a Tariff Rate Quota (TRQ) of 5,841 Metric Tonnes (MT) for the export of sugar to the European Union. As per Public Notice No. 18/2025-2026, this quota is for the period from October 2025 to September 2026.

The Agricultural and Processed Food Products Export Development Authority (APEDA) will be the implementing agency for the quota. Exporters will need to obtain a Certificate of Origin from the Additional Director General of Foreign Trade, Mumbai, based on APEDA's recommendation.

8. DGFT Notifies New SIONs for Pharmaceutical and Chemical Products

The DGFT, in Public Notice No. 14/2025-26, has fixed three new Standard Input Output Norms (SIONs) under the 'Chemical and Allied Product' group.

The new norms are:

• A-3687: To export 1 kg of Azithromycin Dihydrate, an import of 0.9434 kg of Azithromycin Amine is allowed.

• A-3688: To export 1 kg of Aldehyde C10 (Capric Aldehyde), an import of 1.40 kg of Fatty Alcohol C10 (98% purity) is allowed.

• A-3689: For one formulation of Ceftazidime Powder for injection (1000 mg), an import of 1280 mg of Ceftazidime for Injection Bulk Sterile is allowed.

9. DGFT Fixes Additional SIONs for Chemical Products

In a separate move, the DGFT issued Public Notice No. 16/2025-26 on July 29, 2025, notifying three additional SIONs for chemical products.

The new norms are as follows:

• A-3690: To export 1 kg of Betamethasone Valerate EP/BP/USP, an import of 0.915 kg of Betamethasone is allowed.

• A-3691: To export 1 kg of Ferrous Fumarate USP/BP/FCC/IP, an import of 0.725 kg of Fumaric Acid 99% is allowed.

• A-3692: To export 1 kg of Ferrous Fumarate USP/BP/FCC/IP, an import of 0.65 kg of Maleic Anhydride is allowed.