DGFT Proposes RCMC Exemption for Low-Value Export Consignments Under FTP 2023

The Directorate General of Foreign Trade (DGFT) has issued Notification No. 24/2026-27 dated 22 July 2026, bringing significant updates to the Indian Trade Classification (Harmonised System) [ITC (HS)] 2022 Schedule-I (Import Policy). The notification aligns the import policy with the Finance Act, 2026, ensuring that India’s import classification remains consistent with the latest customs tariff amendments.

These revisions include the insertion, deletion, amendment, splitting, and merging of ITC (HS) codes, along with updates to product descriptions. The changes are effective immediately and are important for importers, customs brokers, logistics providers, and compliance professionals involved in international trade.

Why Was DGFT Notification No. 24/2026-27 Issued?

The Finance Act, 2026 introduced amendments to customs tariff classifications. To maintain consistency across India’s import regulations, DGFT has synchronized the ITC (HS) 2022 Schedule-I (Import Policy) with these changes.

The notification has been issued under:

  • Section 3 and Section 5 of the Foreign Trade (Development and Regulation) Act, 1992
  • Paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023

The updated ITC (HS) Schedule-I is now the official reference for import policy classifications.

Key Changes Introduced

1. ITC (HS) Codes Updated

DGFT has revised numerous ITC (HS) codes through:

  • Insertion of new tariff codes
  • Deletion of obsolete entries
  • Amendment of existing codes
  • Splitting of broader classifications into specific tariff lines
  • Merging of certain tariff entries

These changes ensure that import classifications accurately reflect the latest customs tariff structure.

Examples of Product Categories Affected

The annexures include updates covering products such as:

  • Nuts and dried fruits
  • Cranberries and blueberries
  • Frozen fruits
  • Botanical extracts
  • Herbal products
  • Other commodity classifications

Specific codes have been reclassified, while several new product-specific tariff lines have been introduced.

2. Product Descriptions Revised

Apart from tariff code revisions, DGFT has also updated the descriptions of several ITC (HS) entries to match the amendments introduced through the Finance Act, 2026.

These description updates help eliminate ambiguity during customs clearance and improve classification accuracy.

3. Immediate Implementation

The notification clearly states that the revised ITC (HS) 2022 Schedule-I comes into force with immediate effect from 22 July 2026.

Importers should therefore begin using the revised classifications for all applicable imports without delay.

Who Should Review These Changes?

The notification is particularly relevant for:

Importers

Ensure imported products are classified under the revised ITC (HS) codes before filing Bills of Entry.

Customs Brokers

Update internal classification databases to avoid declaration errors.

Trade Compliance Teams

Review product master data and tariff mappings.

Manufacturers and Traders

Verify whether product classifications have changed due to code splitting or description amendments.

ERP and Compliance Software Providers

Update tariff databases to reflect the latest ITC (HS) Schedule-I.

Business Impact

The revised ITC (HS) codes may affect:

  • Import documentation
  • Customs declarations
  • Duty calculations
  • Product classification
  • Compliance with import policy conditions
  • ERP master data

Incorrect classification could lead to customs delays, reassessment, or compliance issues.

Note:

DGFT Notification No. 24/2026-27 does not introduce a new import policy. Instead, it updates the ITC (HS) 2022 Schedule-I (Import Policy) to align with the tariff amendments made under the Finance Act, 2026. Businesses should review the revised annexures and update their internal product classifications wherever applicable.

Conclusion

DGFT Notification No. 24/2026-27 is an important synchronization exercise that aligns India’s ITC (HS) 2022 Import Policy with the Finance Act, 2026. Although the notification primarily focuses on tariff classification updates, these revisions have a direct impact on import documentation, customs compliance, and trade operations.

Importers and trade professionals should review the updated ITC (HS) Schedule-I and ensure that their product classifications, documentation, and compliance systems reflect the revised codes and descriptions to facilitate smooth customs clearance and regulatory compliance.

Notification Reference:

DGFT
Notification No. 24 /2026-27
22/07/2026

Scroll to Top