Newsletter V8 (12/9/25)

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. DGFT Amends Para 4.61 and 4.63 of FTP-2023 relating to Diamond Imprest Authorisation

The Directorate General of Foreign Trade through Notification 25/2025-26 dtd. 19th August, 2025 has amended Para 4.61 and Para 4.63 of FTP 2023.

Eligibility:

Exporters with Two Star Export House status (or above) and minimum export performance of USD 15 million in Cut & Polished Diamonds for the past three financial years can apply.

Filing Requirement:

GST & IT Returns must be filed; Chartered Accountant-certified ITR of the preceding year to be submitted by 31st December of the application year.

Import Benefit:

Import of Natural Cut & Polished Diamonds allowed up to 5% of average annual export performance (max. USD 15 million).

Duty Exemptions:

Imports under Diamond Imprest Authorisation remain exempt from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Safeguard Duty, Countervailing Duty etc.

Effect of Notification:

These amendments provide exporters more flexibility by allowing submission of ITR by 31st December and continue the wide-ranging duty exemptions on imports under this scheme.

2. DGFT Amends the Minimum Export Price on export of Honey

The Directorate General of Foreign Trade through Notification 27/2025-26 dtd. 22nd August, 2025 has revised the Minimum Export Price (MEP) on Natural Honey from US Dollar 2000 per metric ton to US Dollar 1400 per metric ton with immediate effect, till 31st December, 2025.

3. DGFT Amends Import Policy Condition for Specific Items covered chapter 48 of ITC HS, 2022 Schedule-I

The Directorate General of Foreign Trade through Notification 26/2025-26 dtd. 22nd August, 2025 imposed Minimum Import Price (MIP) of INR 67,220 per MT on Cost Insurance and Freight (CIF) value on import of Virgin Multi-layer Paper Board (VPB) under ITC (HS) Codes48059100, 48059200, 48059300, 48109200 and 48109900 till 31st March, 2026.

4. DGFT Amends Para 2.03(A)(i)(g) of Foreign Trade Policy 2023 regarding import of inputs under mandatory Quality Control Orders

The Directorate General of Foreign Trade through Notification 28/2025-26 dtd. 28th August, 2025 introduced the following change-

Earlier, the Export Obligation (EO) period for imports under QCO exemption of chemical products was capped at 180 days from clearance, but this restriction has now been removed; going forward, the EO period for all Advance Authorisation holders, including EOU and SEZ units, will align with Para 4.40 of the Handbook of Procedures, extending it to 18 months.

Impact:

This amendment provides extended compliance flexibility to exporters by standardizing the EO period for imports subjected to mandatory QCOs.

5. DGFT Amends Export Policy of Animals By-Products

The Directorate General of Foreign Trade has amended the export policy for certain animal by-products via Notification No. 29/2025-26 dtd 8th September, 2025 with the changes taking effect immediately. This revision aligns India's export rules with specific European Union (EU) regulations. The amendment introduces a new policy condition under Chapter 23 of the ITC(HS) 2022 export policy The updated policy allows for the export of specific animal by-products such as meat, offal, bones, and hides, provided they are used as raw materials for pet food that is not intended for human consumption. These materials must be sourced from APEDA-registered integrated abattoirs or Municipal Slaughterhouses. A designated state veterinary authority is responsible for issuing a certificate to ensure the raw materials' suitability for this purpose. This certification is based on inspections carried out by veterinarians who are registered under the Indian Veterinary Council Act, 1984.

The amendment also revises the export policy for specific ITC(HS) codes, including; 23091000 (Dog or cat food) and 23099010 (Compounded Animal Feed). These products are now subject to both Policy Condition 1 and the newly added Policy Condition 2 of the relevant chapter. This change aims to streamline the export of these products while ensuring they meet international standards.

6. DGFT Introduces 2 new Standard Input Output Norms (SIONs) under Chemical and Allied Product

The Directorate General of Foreign Trad via Public Notice No. 19/2025-26 dtd 22nd August, 2025 introduced 2 new Standard Input Output Norms (SIONs) with serial number: (Under Chemical & Allied Product Group A)

Effect: Introduced to empower Regional Authorities (RAs) to issue Advance Authorisations directly, eliminating the need to refer individual cases to the Norms Committee, thereby speeding up clearances and ensuring greater uniformity.

7. DGFT Suspends SIONs pertaining to Food Products

The Directorate General of Foreign Trad via Public Notice No. 20/2025-26 dtd 26th August, 2025 announced immediate suspension of Standard Input Output Norms (SIONs) for certain food products listed in Annexure "A".

But exporters of these food products can still apply for benefits under the Advance Authorisation scheme by way of following methods:

• Self-declaration: You can apply for benefits on a self-declaration basis, as outlined in paragraph 4.03(b)(ii).

• Prior fixation of norms: You may also choose to apply for benefits based on a prior fixation of norms by the Norms Committee, which is specific to your application and detailed in paragraph 4.03(b)(iii).

• Self-ratification scheme: Another option is to use the Self-Ratification Scheme, as described in paragraph 4.03(b)(iv)

8. DGFT Introduces a new SION “SION-3695” under Chemical and Allied Product

The Directorate General of Foreign Trade via Public Notice No. 21/2025-26 dtd 3rd September, 2025 introduced a new Standard Input Output Norms (SIONs) with serial number: (Under Chemical & Allied Product Group A);

Effect: Additional SION notified so that the Regional Authorities (RAs) can issue Advance Authorisation directly there by expediting clearance and ensuring uniformity.

9. Amendments to the Handbook of Procedures, 2023

The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 22/2025, dated September 9, 2025, to amend the Handbook of Procedures, 2023. This update aims to improve the ease of doing business by introducing a new provision, Para 4.53 (e), that allows for system-related and corrective amendments to unutilized and untransferred Duty-Free Import Authorisations (DFIAs).

What This Means for Exporters

The new provision allows for specific corrections to be made to DFIAs through an application filed in ANF 4G. These amendments, which require the approval of the Head of Office, can include:

• Correcting the Unit of Measurement

• Correcting the ITC HS code of an import item

• Correcting the value of an import item

This change is designed to simplify the process for businesses by providing a formal correction facility within the online system.

10. Clarification on Minimum Import Price (MIP) for Virgin Multi-layer Paper Board (VPB)

The Directorate General of Foreign Trade (DGFT) has issued Policy Circular No. 04/2025-26 to clarify the applicability of the Minimum Import Price (MIP) on Virgin Multi-layer Paper Board (VPB). The MIP of INR 67,220 per MT on a CIF (Cost, Insurance, and Freight) basis was imposed until March 31, 2026, by Notification No. 26/2025-26, dated August 22, 2025.

Exemptions from MIP

Following representations from industry associations and other units, the DGFT has clarified that certain imports are exempt from this MIP:

• Imports of VPB by 100% Export Oriented Units (EOUs) and units located in Special Economic Zones (SEZs) are not subject to the MIP. This exemption applies as long as the imported goods are not sold into the Domestic Tariff Area (DTA).\

• Imports of VPB under Advance Authorisation or Duty-Free Import Authorisation (DFIA) schemes are also exempted from the MIP restriction.

The DGFT has brought these policy provisions to the attention of customs authorities and trade members for their necessary action.

11. Exemption of Import Duty on Cotton

The Ministry of Finance, Department of Revenue, has issued Notification No. 35/2025-Customs, effective from August 19, 2025. This notification exempts imported cotton from all customs duties and the Agriculture Infrastructure and Development Cess. The exemption applies to cotton falling under heading 5201 of the First Schedule to the Customs Tariff Act, 1975.

On 28th August, 2025 another Notification was passed extending the date of relief from import duty on cotton from 30th September to 31st December 2025.

12. ICEGATE Advisory on Regulations for Ex-Bonding of Goods

Starting September 1, 2025, new regulations will affect the filing of ex-bond Bills of Entry (BoE) from warehouses.

Key Changes:

• Ex-Bonding Requirement: Ex-bonding will only be allowed for the quantity of goods available in the ledger and mapped to both the IEC holder and the specific warehouse where the goods are stored. This change applies to BoEs filed after September 1, 2025.

• Filing Process: When filing, you must declare the warehouse code, and ex-bonding will only be allowed if a ledger exists for your IEC at that warehouse.

• Bond-to-Bond Movement: The ledger is created only after a bond-to-bond movement is fully completed with re-warehousing confirmation by the destination warehouse officer.

Action Required:

Ensure proper completion of all warehouse bonded movement transactions on the system before filing for ex-bonding to prevent ledger discrepancies.