The Directorate General of Foreign Trade (DGFT) has issued Policy Circular No. 09/2025-26 dated February 06, 2026 providing critical clarification regarding the warehousing of chemicals in private and public bonded warehouses under Para 2.36(a) of the Foreign Trade Policy (FTP) 2023. The clarification responds to industry representations seeking uniformity in operational practices governing bonded warehousing of industrial chemicals.
Background
- Para 2.36 of FTP 2023 allows the setting up of private/public bonded warehouses for storing imported goods (excluding prohibited items, arms/ammunition, hazardous waste, etc.) under Customs Act, 1962.
- However, stakeholders highlighted ambiguity regarding industrial chemicals, which are crucial inputs for sectors like petrochemicals, pharmaceuticals, intermediates, and speciality chemicals.
Key Points Clarified
Exclusion of “Hazardous Chemicals” Was Intended Only for Unregulated Storage
- DGFT has clarified that the exclusion of “hazardous chemicals” in Para 2.36(a) was specifically aimed at preventing unregulated warehousing, not restricting all chemically-classified goods.
- Industrial chemicals already regulated through established frameworks (such as at ICDs/CFSs) may be warehoused in bonded facilities.
Revised Position on Warehousing of Industrial Chemicals
- To facilitate trade and ensure continuity of industrial supply chains, DGFT has clarified that:
Warehousing of Industrial Chemicals Is Permitted
Industrial chemicals can be stored in public and private bonded warehouses under Para 2.36(a) subject to the following conditions:
Mandatory Compliance Conditions
i. Adherence to Domestic Laws for Chemical Storage
- Bonded warehouses must comply with all domestic laws, rules, and regulations governing chemical handling and storage.
- Authorities issuing/renewing warehouse licences under the Customs Act must ensure compliance.
ii. Compliance with Import–Export Policy & Customs Rules
Chemicals to be warehoused must meet all conditions under:
- Import & Export Policy (IEP) notified under the Foreign Trade Act, 1992, and
- Customs Act, 1962 and subordinate rules/regulations.
iii. Compliance with All Other Provisions of Para 2.36, FTP 2023
- All provisions of Para 2.36 remain fully applicable and must be complied with by warehouse operators and importers.
Purpose and Impact
This clarification aims to:
- Remove ambiguity surrounding storage of industrial chemicals
- Ensure uninterrupted industrial supply chains
- Promote trade facilitation in the spirit of FTP 2023
- Strengthen regulatory consistency across bonded warehousing operations
The Policy Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/02/Poilcy-Circular-9.pdf
