Newsletter V9 (9/10/25)

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.

1. Major Trade Facilitation Reform – Launch of “Ekal Anubandh”

CBIC Public Notice No. 15/2025 – 25th August 2025

Introduces “Ekal Anubandh” (Single Unified Multi-Purpose Electronic Bond), a major trade facilitation reform replacing multiple paper bonds and bank guarantees with a Single All-India Multi-purpose Electronic Bond (SEB). Executed digitally via the ICEGATE portal, this system covers stamp duty and e-signature, eliminating physical paperwork, reducing transaction costs, and promoting transparency for importers, exporters, and other stakeholders.

2. Ease of Doing Business – Online Correction Facility for DFIA

DGFT Public Notice No. 22/2025 – 9th September 2025

Adds Para 4.53(e) to the HBP to enhance ease of doing business by introducing an online correction facility. Applicants can now file ANF 4G for system-related or corrective amendments in unutilized/un-transferred Duty-Free Import Authorizations (DFIAs). Corrections such as Unit of Measurement, ITC HS code, or import item value must be approved by the Head of Office.

3. IGST Rate Increased on Energy-Sector Equipment

CBIC Notification No. 39/2025 – 17th September 2025

Increases the IGST rate to 18% for specialized energy-sector equipment under entry S. No. 404 of Customs Notification No. 50/2017, effective 22nd September 2025. This includes machinery, pipes, and accessories for Petroleum Exploration Operations (PEOP).

4. Clarification on Customs Tax Exemption Coverage

CBIC Notification No. 38/2025 – 17th September 2025

Clarifies that customs tax exemptions in Notification No. 29/2025 cover both Basic Customs Duty and IGST, ensuring full tax exemption on the covered imports, effective 22nd September 2025.

5. Expansion of Defense-Related Duty Exemptions

CBIC Notification No. 37/2025 – 17th September 2025

Expands the defense-related goods list eligible for customs duty exemption by adding 18 new entries (Sr. No. 24–41) to Notification No. 19/2019-Customs. These include flight simulators, drone batteries, radios, rebreather sets, ship-launched missiles, and RPAs, effective 22nd September 2025.

6. Extension of Project Import Scheme Validity

CBIC Notification No. 40/2025- 25th September 2025

The Ministry of Finance (Department of Revenue) has issued Notification No. 40/2025-Customs dated 25th September 2025, amending Notification No. 50/2017-Customs.

Under this amendment:

The validity of the concessional customs duty benefit for certain project import items (Serial Nos. 598, 601, 602, and 603) has been extended from 2025 to 2027.

Item (i) under Serial No. 597 will cease to have effect after 30th September 2025, while items (iii) and (v) under the same serial will remain valid up to 30th September 2027.

The notification comes into force from 30th September 2025.

Importers availing benefits under the Project Import Scheme can continue to claim concessional customs duty up to 30th September 2027 for the extended items.

7. Import Restriction on ATS-8

DGFT Notification No. 30/2025 – 18th September 2025

Updates import rules for ATS-8, changing its policy from “Free” to “Restricted” for CIF value below USD 111/kg (valid till 30th September 2026). Exemptions apply to AA, EOU, and SEZ units not selling domestically.

8. Prohibition on Duty-Free Import of Spices under DFIA

DGFT Policy Circular No. 05/2025 – 22nd September 2025

Clarifies that all spices are ineligible for import under the DFIA scheme, as they are listed in Appendix 4J with a pre-import condition. This strictly prohibits duty-free import of spices under DFIA.

9. Revision of SCOMET List

DGFT Notification No. 31/2025 – 23rd September 2025

Updates the SCOMET List (Appendix 3, FTP) to align with international export control regimes. The revised list will be effective 30 days from 23rd September 2025, introducing new licensing requirements for certain dual-use and sensitive items.

10. Export Guidelines for Second Generation (2G) Ethanol

DGFT Trade Notice No. 12/2025 – 24th September 2025

Clarifies the export process for Second Generation (2G) Ethanol under HS Code 22072000. Export is allowed only for fuel/industrial use with DGFT authorization and compliance with BIS 15464 standards and certification of origin for feedstock.

11. Mandatory Registration for Non-Basmati Rice Exports

DGFT Notification No. 33/2025 – 24th September 2025

Amends export policy for Non-Basmati Rice (still “Free”) but mandates registration of all contracts with APEDA, ensuring better government oversight on export quantities.

12. Authorization-Based Export of 2G Ethanol

DGFT Notification No. 32/2025 – 24th September 2025

Allows export of Second Generation (2G) Ethanol (produced from non-food sources) under authorization. All other denatured ethyl alcohol exports remain “Restricted.”

13. Temporary Restriction on Import of Silver Jewellery

DGFT Notification No. 34/2025 – 24th September 2025

Restricts the import of unstudded silver jewellery (ITC HS 71131141, 71131149) by changing policy from “Free” to “Restricted” until 31st March 2026. Importers now require a valid license.

14. Global Trade Update – US Tariffs on Pharma Imports

The Economic Times (Trade) – 26th September 2025

The US imposed a 100% tariff on imported branded and patented pharmaceuticals effective 1st October 2025. However, the impact on Indian pharma exports is limited, as most exports are generic medicines, exempt from this tariff. Experts caution about potential long-term impacts on complex generics and biosimilars.

15. Launch of eCOO under India-EFTA TEPA

DGFT Trade Notice No. 13/2025-26 – 30th September 2025

Launches electronic filing and issuance of Preferential Certificates of Origin (eCOO) under India-EFTA TEPA, effective 1st October 2025, for exports to Iceland, Liechtenstein, Norway, and Switzerland. Certificates will be issued on the Trade Connect ePlatform (www.trade.gov.in) through self-declaration or authorized agency. Exporters must ensure Digital Signature and updated IEC details.

16. Implementation of Tariff Concessions under India-EFTA TEPA

CBIC Notification Nos. 41, 42, 43/2025-26 – 30th September 2025

Implements the first tranche of tariff concessions under India-EFTA TEPA, reducing Basic Customs Duty (BCD), AIDC, and Health Cess on eligible imports from Switzerland, Norway, and Iceland, subject to proof of origin.

17. Extension of RoDTEP Scheme

DGFT Notification No. 35/2025-26 – 30th September 2025

Extends the RoDTEP Scheme until 31st March 2026 for all export categories (DTA, AA, SEZ, and EOUs) with existing rates.

18. Empowerment of Regional Authorities for End-User Certificates

DGFT Public Notice No. 23/2025-26 – 1st October 2025

Amends Para 2.35 of HBP 2023, authorizing Regional Authorities (RAs) to issue End-User Certificates (EUCs) for restricted items, provided a valid restricted authorization exists. The EUC quantity/value cannot exceed authorization limits.

19. Removal of Export Restrictions to Bhutan

DGFT Notification No. 36/2025-26 – 3rd October 2025

Lifts all export restrictions on agricultural and food commodities to Bhutan, including milk, potatoes, onions, lentils, tea, rice, wheat, edible oils, sugar, and salt, ensuring uninterrupted supply.

20. Liberalization of De-Oiled Rice Bran (DoRB) Export

DGFT Notification No. 37/2025-26 – 3rd October 2025

Changes the export policy for De-Oiled Rice Bran (DoRB) from “Prohibited” to “Free”, allowing immediate unrestricted export for items under Chapters 2302 and 2306.

21. One-Time Export Approval for Wheat Seeds

DGFT Notification No. 38/2025-26 – 3rd October 2025

Grants a one-time export exemption for Wheat Seed (DWR-162) under ITC HS 10019100, allowing 100 MT export from University of Dharwad to Indonesia via NCEL (Mangalore Sea Port). Certification must come from the University or the Department of Agriculture, Karnataka.