WHAT IS THIS NOTICE?
The Directorate General of Foreign Trade (DGFT) has issued Trade Notice No. 07/2026-27 on June 3, 2026, inviting comments from exporters, industry associations, and trade experts on proposed changes to Schedule-II (Export Policy) of ITC (HS) 2022.
These changes are required because the Finance Act, 2026 has amended the First Schedule of the Customs Tariff Act, 1975 — introducing new HS Codes, revised product descriptions, and updated Chapter Notes.
📧 Submit to: export-dgft@nic.in
WHY THIS MATTERS TO EXPORTERS
Every time the Finance Act changes HS codes, exporters must update:
- Shipping bills — wrong HS code = customs delay or penalty
- Export licences and authorisations — linked to ITC HS codes
- RCMC (Registration-cum-Membership Certificate) — commodity-specific
- Free Trade Agreement (FTA) claims — CoO eligibility depends on correct HS
This Trade Notice gives you the window to flag concerns before DGFT finalises the changes. Miss this window and you deal with the consequences at the port.
This update is part of India's broader push to align its trade classification with global standards — a goal reflected in the USD 1 trillion export target for FY2026-27 and the DGFT Export Promotion Mission Guidelines 2026.
SECTOR-WISE SUMMARY OF PROPOSED CHANGES
🐟 Chapter 3 — Marine Products
SEAFOOD EXPORTERS| Old HS Code | Status | New HS Codes | Policy |
|---|---|---|---|
| 03061900 (Frozen crustaceans – Other) | DELETED | 03061910 (Krill) | FREE |
| 03061990 (Other) | FREE |
Impact: Krill exporters get a dedicated HS code. Marine exporters must update all documentation.
🍓 Chapter 8 — Fruits & Nuts
AGRI EXPORTERSCranberries and blueberries now have dedicated HS codes across fresh, frozen, and dried categories:
| New HS Code | Description | Policy |
|---|---|---|
| 08104010 | Cranberries (fresh) | FREE |
| 08104020 | Blueberries (fresh) | FREE |
| 08029910 | Pecan nuts | FREE |
| 08119011–08119099 | Frozen berries (with/without sugar) | FREE |
| 08134030–08134040 | Dried cranberries & blueberries | FREE |
Impact: Fruit exporters dealing in berries and nuts must use new codes immediately on implementation.
🌿 Chapter 13 — Herbal & Plant Extracts (Ayush/Pharma)
AYUSH / PHARMA EXPORTERSOld catch-all codes deleted. Individual codes now assigned to major medicinal plants. Relevant to AYUSHEXCIL's growing export mandate and India's pharma exports crossing USD 30 billion.
| New HS Code | Plant Extract | Policy |
|---|---|---|
| 13021921 | Withania somnifera (Ashwagandha) | FREE |
| 13021922 | Bacopa monnieri (Brahmi) | FREE |
| 13021923 | Berberis aristata (Daruharidra) | FREE |
| 13021924 | Boswellia serrata (Shallaki) | FREE |
| 13021925 | Emblica officinalis (Amla) | FREE |
| 13021926 | Ocimum sanctum (Tulsi) | FREE |
| 13021927 | Capsicum annuum | FREE |
| 13021937 | Curcuma longa (Turmeric) | FREE |
| 13021938 | Zingiber officinale (Ginger) | FREE |
| 13021950 | Cashew Shell Liquid (CNSL), crude | FREE |
| 13021960 | Purified CNSL (Cardanol) | FREE |
Impact: Ayush exporters, herbal supplement manufacturers, CNSL/Cardanol traders — update your HS codes urgently.
🧪 Chapter 29 — Chemicals (Narcotics-linked)
PHARMA / CHEMICAL EXPORTERSSeveral precursor chemicals now have granular HS codes. Many require NOC from the Narcotics Commissioner of India, Gwalior for export:
| Chemical | HS Code | NOC Required? |
|---|---|---|
| Phenylacetic acid & salts | 29163410/90 | ✅ YES |
| Anthranilic acid & salts | 29224310/90 | ✅ YES |
| Ephedrine & salts | 29394110/90 | ✅ YES |
| Pseudoephedrine | 29394210/90 | ✅ YES |
| Norephedrine | 29394410/90 | ✅ YES |
| Lysergic acid & salts | 29396310/90 | ✅ YES |
| Thymidine | 29349950 | ⚠️ Restricted — Export Authorization needed |
New FREE codes (no NOC): Acetyl chloride (29159011), Propionyl chloride (29159012), AIBN (29270020), Gibberellic acid (29322040), Aceto butyrolactone (29322050), Artemisinin (29329930).
Impact: Pharmaceutical and chemical exporters — verify NOC requirements before shipment. Wrong classification of a narcotics-precursor chemical can result in seizure.
🧴 Chapter 33 — Flavouring Essences (Beverages)
FOOD & BEVERAGE EXPORTERS| New HS Code | Description | Policy |
|---|---|---|
| 33021011 | Alcoholic compound preparations (>0.5% vol.) | FREE |
| 33021019 | Other | FREE |
| 33021091 | Alcoholic compound preparations | FREE |
| 33021099 | Other | FREE |
Old codes 33021010 and 33021090 deleted.
🛢️ Chapter 39 — Plastics
PACKAGING EXPORTERS| New HS Code | Description | Policy |
|---|---|---|
| 39232991 | Biodegradable plastic packaging | FREE |
Impact: Exporters of biodegradable packaging can now classify separately — important for EU/UK sustainability-linked trade preferences.
🐄 Chapter 41 — Leather (Wet Blues)
LEATHER / TANNERY EXPORTERS| New Code | Description | Policy |
|---|---|---|
| 41041110 | Wet blues (full grain) | FREE |
| 41041190 | Other | FREE |
| 41051010 | Sheep/lamb wet blues | FREE |
| 41062110 | Goat/kid wet blues | FREE |
| 41063110 | Swine wet blues | FREE |
Impact: Leather exporters, tanneries — wet blue exports now have dedicated codes. DGFT can monitor wet blue outflows more precisely.
🪨 Chapter 26 — Zirconium Ores (Critical Minerals)
MINING / CRITICAL MINERALS| New Code | Description | Policy |
|---|---|---|
| 26151010 | Hafnium ores & concentrates | FREE — STE (IREL only) |
| 26151090 | Other zirconium ores | FREE — STE (IREL only) |
Impact: IREL monopoly continues. Classification updated to separate Hafnium from other zirconium ores. Old code 26151000 deleted.
🌲 Chapter 47 — Wood Pulp
TEXTILE / RAYON| New Code | Description | Policy |
|---|---|---|
| 47020010 | Rayon grade wood pulp | PROHIBITED |
| 47020090 | Other dissolving-grade wood pulp | PROHIBITED |
Impact: Export of dissolving-grade chemical wood pulp now explicitly prohibited. Old code 47020000 deleted.
🪁 Chapter 48 — Paper Products
| New HS Code | Description | Policy |
|---|---|---|
| 48239040 | Kites | FREE |
🔩 Chapter 73 — Steel Pipes & Tubes
STEEL EXPORTERSExtensive restructuring of HS codes under headings 7305 and 7306, separating galvanised vs non-galvanised, iron vs other, clad/plated/coated vs plain. All new codes FREE. Old consolidated codes deleted.
Impact: Steel pipe exporters — significant reclassification. Update your IEC-linked product codes and inform your customs broker immediately. Context: Engineering exports surged 8.78% in April 2026 — correct HS classification is critical to sustaining this growth.
❄️ Chapter 86 — Refrigerated Containers
| New Code | Description | Policy |
|---|---|---|
| 86090010 | Refrigerated containers | FREE |
| 86090090 | Other containers | FREE |
Impact: Reefer container exporters get a dedicated code — important for cold chain logistics exporters. Old code 86090000 deleted.
⚡ Chapters 84 & 85 — Machinery & Electronics
| New HS Code | Description | Policy |
|---|---|---|
| 84159010 | AC split unit indoor/outdoor units (separately presented) | FREE |
| 84219910 | RO membrane elements for household filters | FREE |
| 85079020 | Battery separators | FREE |
| 85291093 / 85299030 | Parts for broadcasting/comms apparatus | FREE |
DUTY RATE CHANGES (Supplementary Notes)
| Chapter | Item | New Rate |
|---|---|---|
| Ch. 8 | Almonds in shell (080211) | Rs. 35/kg |
| Ch. 8 | Almonds shelled (080212) | Rs. 100/kg |
| Ch. 8 | Walnuts in shell (080231) | 100% |
| Ch. 8 | Processed nut products (200819xx) | 30% |
| Ch. 12 | Seeds for sowing (1209xx) | 15% |
| Ch. 21 | Food preparations (2106 90 xx) | 50% |
| Ch. 25 | Natural graphite (2504) | 2.5% |
| Ch. 25 | Natural sands (2505) | Free |
| Ch. 25 | Quartz/quartzite (2506) | 2.5% |
| Ch. 28 | Silicon (various 2804/2805) | Free |
| Ch. 28 | Phosphoric acid (280920) | 5% |
| Ch. 28 | Silicon dioxide (281122) | 2.5% |
| Ch. 39 | PVC (3904) | 7.5% |
| Ch. 48 | Other paper/paperboard (482990) | 10% |
| Ch. 84 | Industrial dryers (841989xx) | 7.5% |
ACTION CHECKLIST FOR EXPORTERS
- ✅ Step 1 — Check if your HS code is in the deleted list
Review Annexure-II of the notice. Over 80 old codes are deleted. If your current export documentation uses a deleted code, you must migrate to the new code. - ✅ Step 2 — Submit comments to DGFT by June 10, 2026
Email: export-dgft@nic.in — Especially important if the proposed change affects your product classification, duty rate, or export conditions. - ✅ Step 3 — Chemical exporters — verify NOC requirements
If you export any product in Chapter 29 that requires a Narcotics Commissioner NOC, ensure compliance before your next shipment. - ✅ Step 4 — Update your customs broker
Share this notice with your CB immediately. HS code changes affect Bill of Lading, Shipping Bill, RCMC, and FTA CoO applications. - ✅ Step 5 — Leather exporters — wet blue classification
Your wet blue exports now have a specific HS code. Ensure your invoices, packing lists and shipping bills reflect the new codes once notified.
KEY DATES
| Date | Action |
|---|---|
| June 3, 2026 | Trade Notice 07/2026-27 issued by DGFT |
| ⚠️ June 10, 2026 | DEADLINE — Submit comments to export-dgft@nic.in |
| TBD | DGFT finalises and notifies amended Schedule-II |
Issued by: K. Hrushikesh Reddy, Joint Director General of Foreign Trade, Vanijya Bhawan, New Delhi
Published: June 2026 | Category: DGFT, Trade Notice, ITC HS, Export Policy