DGFT Invites Stakeholder Comments on Alignment of ITC (HS) 2022 Schedule-II (Export Policy) Consequent to Finance Act, 2026 Amendments

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DGFT Trade Notice - 2026

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, has issued Trade Notice No. 07/2026-27 dated June 03, 2026, drawing reference to the Finance Act, 2026, which has introduced several amendments to the First Schedule of the Customs Tariff Act, 1975. These amendments encompass changes in Harmonised System (HS) Codes, Product Descriptions, and Chapter Notes across a wide range of commodity groups. Consequent to these changes, the DGFT is in the process of aligning Schedule-II (Export Policy) of ITC (HS) 2022 to reflect the updated tariff structure.

Stakeholder Consultation Under FTP 2023

In line with Para 1.07A of the Foreign Trade Policy (FTP) 2023, which mandates consultation with stakeholders during the formulation or amendment of the Foreign Trade Policy, the DGFT has enclosed two Annexures to this Trade Notice: Annexure-I covering proposed changes in Chapter Notes as introduced in the Finance Act, 2026, and Annexure-II covering proposed changes in HS Codes and Product Descriptions. The DGFT invites views, suggestions, and comments from all relevant stakeholders, including exporters, industry associations, and domain experts, on the proposed amendments. Submissions must be made within 7 (seven) days of the issuance of this Trade Notice via e-mail to export-dgft@nic.in.

Key Proposed Changes Across Chapters

The proposed amendments span 21 Chapters of the Customs Tariff, with key highlights as under:

  • Chapter 3 — Fish & Crustaceans (HS 0306): Separate sub-headings introduced for Krill (03061910) and Other (03061990) in place of the existing tariff item 03061900. Export policy for krill and related sub-items set as FREE. Additionally, the export policy for tariff item 0306 36 60 is revised to FREE.
  • Chapter 8 — Edible Fruits & Nuts (HS 0802, 0810, 0811, 0813): New distinct tariff lines introduced for Cranberries and Blueberries under multiple headings (fresh, frozen, dried), as well as Pecan Nuts (08029910) and Shea Nuts (12079950 under Chapter 12). All new codes carry FREE export policy. The erstwhile single codes for these items stand deleted.
  • Chapter 13 — Lac, Gums & Vegetable Saps/Extracts (HS 1302): Significant granularisation of Ayurvedic and medicinal plant extracts. New specific codes introduced for extracts of Ashwagandha (Withania somnifera), Brahmi (Bacopa monnieri), Guduchi (Berberis aristata), Boswellia serrata, Amla (Emblica officinalis), Tulsi (Ocimum sanctum), Black Pepper (Piper nigrum), Turmeric (Curcuma longa), Ginger (Zingiber officinale), and several others under heading 1302. Separate codes also assigned for Cashew Shell Liquid (CNSL, crude) and Cardanol. All new entries carry FREE export policy subject to Chapter Policy Conditions 2 & 3.
  • Chapter 20 — Preparations of Vegetables/Fruits (HS 2008): New specific sub-headings created for Cranberries (20089310) and Blueberries (20089915, 20089995) under heading 2008. The broad existing code 20089300 stands deleted.
  • Chapter 21 — Miscellaneous Edible Preparations (HS 2106): Reclassification of compound preparations for making beverages with a new split for alcoholic compound preparations (21069051) and others (21069059) in place of deleted item 21069050.
  • Chapter 22 — Beverages (HS 2202): New granular sub-codes introduced for Cranberry products and other beverages under fruit pulp/juice-based drinks (22029921–22029929), milk-based beverages (22029931–22029939), and other beverages (22029991–22029999), replacing the broader codes 22029920, 22029930, and 22029990.
  • Chapter 25 — Mineral Products / Chapter 26 — Ores (HS 2529, 2615): Fluorspar (S 25292200) is granularised into Acid Grade (25292210) and Others (25292290). Zirconium ores and concentrates (26151000) are split into Hafnium (26151010) and Other (26151090), both designated as State Trading Enterprise (STE) with export permitted through Indian Rare Earths Limited (IREL) only.
  • Chapter 28 — Inorganic Chemicals: Wide-ranging supplementary note revisions setting export policy to FREE for several sub-headings of headings 2504, 2505, 2506, and numerous tariff items under Chapter 28, including items relating to selenium, phosphoric acid, silicon dioxide, and lithium compounds. Ammonium metavanadate (28419010) assigned a dedicated code.
  • Chapter 29 — Organic Chemicals: Extensive structural changes including new codes for Acetyl chloride (29159011), Propionyl chloride (29159012), Triethyl orthoformate (29159096), Phenylacetic acid (29163410), Malonic acid (29171921), Diethyl malonate (29171922), Methyl alpha-phenylacetoacetate (29183070), P-2-P methyl glycidic acid (29189940), DL-2 Aminobutanol (29221930), Anthranilic acid (29224310), Alpha-phenylacetoacetamide (29242991), AIBN (29270020), Gibberellic acid (29322040), Artemisinin (29329930), Piperidine (29333220), 4-Piperidone (29333970), Norfentanyl (29333991), Thymidine (29349950), Ephedrine (29394110), Pseudoephedrine (29394210), Norephedrine (29394410), and Lysergic acid (29396310). Note: Export of Phenylacetic acid and Anthranilic acid and their salts remains Free subject to No Objection Certificate from the Narcotics Commissioner of India, Gwalior.
  • Chapter 33 — Essential Oils & Cosmetics (HS 3302): Sub-division of synthetic flavouring essences under heading 3302 into alcoholic compound preparations (33021011/33021091) and other (33021019/33021099).
  • Chapter 39 — Plastics (HS 3923): New dedicated tariff item for Biodegradable plastics articles (39232991) under heading 3923.
  • Chapter 41 — Raw Hides & Leather (HS 4104, 4105, 4106): New sub-headings introduced for Wet Blues (FREE export policy) separately from other items under leather headings, enabling better trade data capture for the leather sector.
  • Chapter 47 — Wood Pulp (HS 4702): Rayon grade wood pulp (47020010) and other dissolving grades (47020090) introduced as separate sub-headings under heading 4702.
  • Chapter 48 — Paper & Paperboard (HS 4823): A new dedicated tariff item for Kites (48239040) introduced under heading 4823.
  • Chapter 73 — Articles of Iron & Steel (HS 7305, 7306): Detailed granularisation of steel pipe classifications in heading 7305 and 7306, creating distinct sub-codes for galvanised, non-galvanised (of iron), and non-galvanised (other) categories, further differentiated by clad/plated/coated and plain variants.
  • Chapter 81 — Other Base Metals (HS 8101): New tariff item 81019920 introduced for Tungsten bars, rods, profiles, plates, sheets, strips and foil. Cobalt mattes (8105 20 30) export policy revised to FREE.
  • Chapter 84 — Machinery (HS 8415, 8421): Separate sub-headings created for indoor/outdoor units of split-system air conditioners (84159010) and Reverse Osmosis (RO) membrane elements for household-type filters (84219910).
  • Chapter 85 — Electrical Equipment (HS 8507, 8529): Battery separators (85079020) assigned a dedicated tariff item. New sub-items inserted for apparatus of headings 8525 to 8527 under heading 8529.
  • Chapter 86 — Railway Vehicles & Containers (HS 8609): Refrigerated containers (86090010) assigned a separate tariff item under heading 8609.

How to Submit Comments

Stakeholders are requested to submit their inputs and comments to the DGFT within 7 (seven) days from the date of issuance of this Trade Notice, i.e., on or before 10th June 2026. Submissions may be made via e-mail to export-dgft@nic.in. Stakeholders are encouraged to provide specific, chapter-wise and code-wise feedback on the proposed alignments to facilitate the finalisation of the updated Schedule-II (Export Policy) of ITC (HS) 2022.

The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/06/Trade-Notice-no-07.pdf

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