The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, has issued Trade Notice No. 32/2026-27 dated October 26, 2026, announcing significant amendments and clarifications to the guidelines governing Support for Alternative Trade Instruments under the Export Promotion Mission (EPM) – Niryat Protsahan.
The amendments have been introduced in continuation of Trade Notice No. 25/2025-26 dated February 20, 2026, with the objective of simplifying procedural requirements, streamlining export factoring claims, providing clarity on eligibility and facilitating access to export financing support, particularly for Micro, Small and Medium Enterprise (MSME) exporters.
Major Procedural Relief: UIN Requirement Discontinued
In a significant compliance simplification, DGFT has discontinued the requirement for exporters to submit a declaration of intent and obtain a Unique Identification Number (UIN) before availing support under the export factoring intervention.
Exporters will now be identified exclusively through their Importer Exporter Code (IEC) at every stage, including application, claim processing and disbursement.
Accordingly, paragraphs (a) to (e) of Annexure-IV and the prescribed Intent to Claim Form under the earlier guidelines stand deleted. UINs already generated will also cease to have effect.
This amendment eliminates an additional registration-related requirement and is expected to facilitate faster and simpler access to the scheme.
DGFT Clarifies Three Eligible Export Factoring Modalities
To ensure uniform implementation, DGFT has specified three eligible factoring arrangements and their corresponding transaction-data filing requirements.
M1 – Advance Factoring: Where advances are paid upfront and interest is either deducted at disbursement or accrued over the advance period, the Factor must upload one transaction record per tranche after receipt of payment from the buyer.
M2 – Revolving Factoring Facility: Where advances are provided on a revolving basis and interest is calculated on the average outstanding balance for each billing period, the Factor must upload one record after the relevant billing period closes. The actual buyer payment date must be provided upon invoice closure, and subvention will be computed only after such date is furnished.
M3 – Advance Factoring with Bullet Interest: Where an advance is provided upfront but interest is deferred and charged in full upon buyer settlement, the Factor must upload one record per tranche after buyer payment.
These clarifications establish the relevant filing triggers for different factoring arrangements and provide greater certainty regarding transaction reporting.
Simplified Online Claim Filing and Direct Disbursement
DGFT has prescribed a structured digital mechanism for submitting transaction data and claiming support through its online portal.
Under the revised procedure, Factors must first register on the DGFT portal at www.dgft.gov.in and upload transaction-level information through:
My Dashboard → Factoring Application Room → Start Fresh Application
The prescribed transaction data uploaded by the Factor will constitute IEC-wise subvention claims filed on behalf of the exporter and serve as the basis for validation and reimbursement claims.
Thereafter, exporters must access:
Services → Export Promotion Mission → Support for Alternative Trade Instruments → Apply for Claim of Support
Exporters will be able to review the factoring records uploaded against their IEC, disable or delete ineligible or unwanted transactions, and confirm eligible records before submitting claims online with the required digital authentication and declaration.
Upon approval by the Competent Authority, the sanctioned subvention amount will be credited directly to the bank account linked to the exporter’s IEC.
Specific Timelines Prescribed for Data Upload and Claims
DGFT has clarified the respective timelines to be followed by Factors and exporters.
The Factor is required to upload transaction-level data within one month of the applicable filing trigger.
The exporter must submit consolidated claims on a monthly basis, within a maximum period of two months from the date of upload of the relevant transaction data by the Factor.
For transactions preceding October 26, 2026, these timelines will be calculated from the date of the present Trade Notice rather than the original filing trigger or upload date, as applicable.
This transitional relaxation provides an opportunity to process eligible earlier transactions without being prejudiced by the newly clarified procedural deadlines.
Important Clarification: Export Date Determines Eligibility from February 20, 2026
DGFT has clarified that support under the intervention is admissible only in respect of exports made on or after February 20, 2026.
For determining eligibility, the relevant date will be the date of the underlying export, evidenced by the date of filing of the Export General Manifest (EGM) containing the relevant shipping bill.
Importantly, eligible claims relating to export factoring transactions on or after February 20, 2026, may be submitted from the date on which the dedicated portal becomes operational.
The prescribed claim-filing limitation will apply prospectively from the operationalization date and will not prevent eligible claims relating to transactions undertaken between February 20, 2026, and portal operationalization.
This clarification provides certainty to exporters regarding the coverage of eligible transactions undertaken before commencement of the online claim facility.
MSME Exporters Permitted to Avail Concurrent Interest Subvention Benefits
In another significant clarification, DGFT has confirmed that eligible MSME exporters availing benefits under the Interest Subvention for Pre- and Post-Shipment Export Credit intervention, notified through Trade Notice No. 20/2025-26 dated January 2, 2026, may simultaneously avail support under the Alternative Trade Instruments intervention, and vice versa.
However, such concurrent benefits will be subject to strict conditions to prevent duplication.
An invoice or export receivable financed through export factoring and claimed under the Alternative Trade Instruments intervention cannot simultaneously be claimed under the post-shipment export credit component of the Interest Subvention intervention.
Similarly, the same interest cost cannot be claimed under both interventions.
The annual financial ceilings will apply separately and independently to each intervention.
Any duplicate or excess claim may result in full recovery of the amount along with interest and penal action under the applicable provisions of the Foreign Trade (Development and Regulation) Act, 1992.
Existing Guidelines to Continue Except for Specified Amendments
DGFT has clarified that, except for the amendment and clarifications introduced through Trade Notice No. 32/2026-27, all other operational and procedural guidelines prescribed under Trade Notice No. 25/2025-26 dated February 20, 2026, will remain unchanged.
Key Takeaway
The latest DGFT amendments represent a significant step towards simplifying export financing procedures, eliminating unnecessary compliance requirements and improving access to alternative trade finance instruments.
The discontinuation of UIN, adoption of IEC-based identification, clarity regarding factoring transactions, direct disbursement of benefits, and permission to avail concurrent interest subvention under separate interventions are expected to improve procedural certainty and ease of compliance for eligible MSME exporters.
Exporters and Factors should ensure timely transaction-data uploads, monthly claim filing, proper reconciliation of factoring records and strict avoidance of duplicate interest subvention claims.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/Signed-Trade-Notice-for-Alternative-Trade-Instrument-dt.-26.10.2026.pdf
