Law Updates

Subject

Summary: Background: The Ammonium Nitrate Regulatory Framework Ammonium Nitrate (AN) is one of the most tightly regulated substances in India due to its dual-use nature it is an essential input for: Agriculture includes fertilizer, primarily in compound fertilizers and straight ammonium nitrate where permitted. Mining and infrastructure are a core explosive ingredient in ANFO Ammonium Nitrate Fuel Oil. Industrial processes include quarrying, demolition, coal mining, and infrastructure construction. The primary regulatory framework is the Ammonium Nitrate Rules, 2012, notified under the Explosives Act, 1884, and administered by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, through the Petroleum and Explosives Safety Organization (PESO). The rules govern: Manufacture of ammonium nitrate Import and export of ammonium nitrate Storage at licensed storehouses Transportation across India Possession by end users India's history with ammonium nitrate is marked by serious safety incidents globally and domestically, the Beirut explosion of 2020 (2,750 tons of AN triggered a catastrophic blast), and various incidents in Indian ports and mining operations have kept ammonium nitrate under sharp regulatory scrutiny. The Ammonium Nitrate (Amendment) Rules, 2025, had already extended the license validity from 5 years to 10 years (effective April 2025). The Draft Amendment Rules, 2026 go further, proposing structural reforms in the security monitoring and license administration. What the Draft Ammonium Nitrate Amendment Rules 2026 Propose? On February 3, 2026, the draft regulations were released in the Official Gazette under G.S.R. 104(E), with a 30-day period for public comment. After considering any complaints and suggestions, the final notification will be sent. The main suggestions are listed below:  1. CCTV surveillance is required in ammonium nitrate storage facilities: The installation of CCTV cameras at all authorized ammonium nitrate storage facilities is the most important recommended modification. Important components: Continuous 24×7 monitoring of storehouse premises through CCTV Secure digital access to CCTV feeds must be provided to: PESO (the licensing authority) District Magistrate / local authority (for emergency response planning) Designated police authority Minimum retention period for CCTV footage must be stored for a specified minimum period (typically 30–90 days, as may be specified in the final rules) Tamper-proof and weather-resistant cameras must be capable of operating in the environmental conditions of the storehouse location. Coverage requirements say all entry and exit points, storage areas, loading/unloading zones, and perimeter to be covered. Failure protocol operators must notify PESO within a defined timeframe in case of CCTV system failure and restore functionality within a specified period. 2. Licences Transfer Reforms: The second major proposal addresses the transfer of ammonium nitrate licences, a provision that previously had limited or ambiguous procedural framework: Formal licence transfer mechanism for licences held for: Storage Possession Transport (including clarity on whose licence applies when a vehicle is provided by the transporter vs by the consignee/consignor) Transfer triggers being contemplated include: Change of ownership of business (e.g., sale of a mining company's assets) Transfer on the death of a sole proprietor Corporate mergers and amalgamations Assignment of licensed premises as part of a going concern sale Clarity on transport licences: Whether the vehicle is supplied by the consignor, consignee, or a third-party carrier, the draft also makes it clear whose transport licence is applicable based on the agreement. This directly resolves a long-standing cause of misunderstanding in compliance and enforcement.  •    Digitization of licence transfer process through the PESO online portal, reducing the need for physical visits and paper-based applications. 3. Refined Definitions and Operational Clarity Updating definitions to align with: Current industry practices in mining and infrastructure Advances in AN emulsion technology (emulsion matrix, heavy ANFO, etc.) Clearer language on: What constitutes "possession" vs "storage" Quantity thresholds for different compliance obligations Implementation Date The implementation timeline for the proposed rules begins with the draft notification issued on 3 February 2026. Following the publication of the draft, stakeholders were provided a 30-day public comment period from the date copies of the Gazette were made available to the public, with the deadline for submitting objections and suggestions falling approximately in early March 2026. After reviewing and considering all feedback received during this consultation period, the Department for Promotion of Industry and Internal Trade (DPIIT) will issue the final rules through a subsequent Gazette notification. As per the draft provisions, the rules will come into force on the date of their final publication in the Official Gazette, meaning enforcement will commence immediately upon notification. Based on the expected timeline for finalization and review of public comments, the final notification and enforcement are anticipated to take place in mid-to-late 2026.  Why DPIIT Implemented these Reforms: The Core Need 1. Post-Beirut Global Reset on Ammonium Nitrate Safety: The 2020 Beirut port explosion caused by improperly stored ammonium nitrate was a watershed event globally that prompted comprehensive reviews of AN storage safety frameworks worldwide, forced governments, including India's, to evaluate whether current surveillance and access control mechanisms were adequate, and India's own audit of major AN storage sites revealed gaps in real-time monitoring. Mandatory CCTV is the direct, technology-enabled response to Beirut: if authorities can see what is happening at every licensed storehouse in real time, catastrophic accumulation and mishandling are detected before they become irreversible. 2. Preventing Diversion to Terrorist and Criminal Activity: Ammonium nitrate is the primary ingredient in improvised explosive devices (IEDs). India has experienced: Multiple IED attacks using AN-based explosives Illegal diversion of mining-grade AN from authorized supply chains 3. Accident Prevention and Emergency Response: In addition to intentional misuse, AN storehouse is at risk for flooding (wet AN can self-ignite under certain conditions), contamination (mixing with incompatible materials), and fire (AN decomposes under fire conditions and can release poisonous fumes and deflagrate). Fire services, PESO inspectors, and district magistrates have access to CCTV feeds.  4. Alignment with Broader DPIIT Safety Modernization: D PIIT's Explosives Division (under which AN Rules fall) has been systematically modernizing all its regulatory frameworks: 2021: SMPV, Calcium Carbide, and AN amendment 2025: AN licence validity extended to 10 years 2026: CCTV, licence transfer, and definitional refinements This is part of a sustained effort to bring India's explosives and hazardous chemical regulatory framework to global best practices while simultaneously reducing unnecessary administrative burden. Impact on Businesses in India in 2026 Businesses that store, transport, import, manufacture, and use ammonium nitrate (AN) will be directly impacted by the proposed revisions. The main effects on the industry are listed below:  Mining and Quarrying Companies: Mining and quarrying businesses, including coal, iron ore, limestone, granite, and aggregate operators, will be most affected as they hold a large number of AN licences. They will be required to install CCTV systems with round-the-clock monitoring capabilities at licensed AN storehouse and provide remote access to authorities. Companies operating multiple storage facilities may face higher compliance costs. The draft also simplifies licence transfers during mergers and acquisitions. Construction and Infrastructure Companies: Businesses that utilize AN-based explosives in roads, tunnels, railroads, dams, and other infrastructure projects must install CCTV systems at storage facilities and account for these expenses in future project budgets. To ensure compliance throughout the project lifespan, temporary project sites may need portable surveillance systems. Manufacturers and importers of explosives: Manufacturers of ANFO, emulsion explosives, and other AN-based explosives are required to make sure that their storage facilities meet the new CCTV regulations and give regulators remote access. Additionally, importers who store AN in ports or warehouses must guarantee sufficient surveillance coverage.  Transporters: The draft makes transport license obligations more clear, particularly when the owner of the vehicle and the owner of the products are not the same. This is anticipated to minimize disagreements during shipping and inspections and lessen compliance issues. Fertilizer Companies: CCTV cameras and remote access for authorities must be installed by fertilizer plants, blending facilities, and storage facilities that hold authorized amounts of AN. Additionally, businesses going through mergers, acquisitions, or restructuring will be able to preserve operational continuity thanks to the more transparent license transfer requirements.  How Businesses Will Be Compliant? Step-by-Step Compliance Pathway for businesses is as follows: Step 1: Conduct an Inventory of Licensed AN Storage Facilities Begin by identifying all licensed ammonium nitrate storage locations and assessing their layout, entry and exit points, existing security arrangements, and network connectivity to understand site-specific compliance requirements. Step 2: Create a CCTV surveillance system that complies.  To create a CCTV strategy that guarantees full coverage of the storeroom, includes suitable camera specifications, offers sufficient video storage, and permits safe remote access for regulatory authorities, hire a qualified security systems supplier. Step 3: Evaluate the Needs for Connectivity Analyse each site's internet or network connectivity availability and dependability. To guarantee continuous monitoring access, remote locations could need specialized communication infrastructure or backup connectivity options.  Step 4: Install and Test the Surveillance Infrastructure. Deploy the CCTV system, configure video storage and retention settings, verify the remote access functionality, and test system performance to ensure compliance with regulatory requirements. Step 5: Establish Access Management Procedures Create secure access credentials for authorised authorities and implement a process for maintaining user records, monitoring access activity, and safeguarding system security. Step 6: Implement Ongoing Maintenance and Reporting Protocols Develop a preventive maintenance schedule for surveillance equipment and establish standard operating procedures for reporting system failures, notifying authorities, and carrying out timely corrective actions. Step 7: Manage Licence Transfers During Ownership Changes Businesses undergoing mergers, acquisitions, or restructuring should submit the required transfer application and supporting documents through the PESO portal and obtain approval before operational control changes hands. Benefits Businesses Get After Implementation 1. Operational and Compliance Benefits Benefit Details Business Continuity in M&A Clear licence transfer process enables seamless operational continuity when mining or infrastructure businesses are bought, sold, or merged Reduced Transport Disputes Clarity on whose transport licence applies eliminates enforcement disputes during transit, fewer delays, and fewer penalties Lower Risk of Unauthorised Access CCTV deters theft, tampering, and unauthorized entry, directly protecting valuable AN inventory Real-Time Incident Response CCTV provides immediate evidence and situational awareness in case of fire, flood, or security breach Insurance Benefit Demonstrable security infrastructure (CCTV + remote monitoring) may reduce insurance premiums for an AN storage facility Regulatory Relationship Providing transparent remote access to PESO builds a more collaborative, trust-based relationship with the regulator 2. Safety Benefits Benefit Explanation Accident Prevention Continuous CCTV monitoring helps detect unusual conditions such as smoke, unauthorized equipment usage, and potential safety hazards at an early stage, enabling quicker emergency response and reducing the risk of major incidents. Deterrence of Mishandling Employees, contractors, and visitors are more likely to follow safety procedures and handle ammonium nitrate responsibly when they know the storage facility is under constant surveillance. Evidentiary Value CCTV footage serves as valuable evidence during investigations, supporting insurance claims, facilitating root cause analysis, and helping companies defend against false allegations of negligence or non-compliance. Is This a Right Decision or an Additional Burden? 1. Why It Is the Right Decision Aspect Reason Post-Beirut Imperative Mandatory surveillance of large AN storage is the global standard post-2020. India must be aligned. Proportionate to the Risk AN is a category-A hazardous substance robust surveillance requirements are proportionate to the catastrophic potential consequences of mishandling. Enables Law Enforcement Remote access for police and DM directly supports India's counter-terrorism and industrial safety frameworks. Long Overdue CCTV requirements for hazardous chemical storage are normal in comparable jurisdictions (EU, USA, Australia); India is catching up. Licence Transfer Fills a Real Gap The absence of clear transfer procedures was causing genuine business operational problems; fixing it is straightforward, and responsive governance. Digital Governance Remote digital access for PESO replaces periodic physical inspections as the primary real-time oversight mechanism. 2. Where It Adds Burden Concern Context CapEx for CCTV Infrastructure Small quarrying businesses or individual mine operators may find the investment significant Network Connectivity at Remote Sites Mines and quarries in remote areas often lack reliable internet; achieving compliant remote access will require additional infrastructure investment Ongoing Maintenance CCTV systems require ongoing maintenance, power backup, and upgrades, a recurring compliance cost Cybersecurity Responsibility Providing remote access to multiple government authorities requires proper cybersecurity measures and an additional technical obligation Balanced verdict: The burden is real but proportionate. The safety and security case for mandatory CCTV monitoring of ammonium nitrate storage is overwhelming. The cost of a single serious incident in terms of human life, environmental damage, property destruction, and legal liability would vastly outweigh the aggregate cost of CCTV compliance across the industry. This is unambiguously the right decision. How the Amendment improve quality, Environmental Conditions, and Ethical Practices? Below are the Broader Benefits of the Proposed Amendments that are as follows: 1. Improved Industrial Safety and Operational Standards By encouraging increased responsibility and compliance, the mandated CCTV surveillance requirements are anticipated to improve all the safety governance throughout ammonium nitrate (AN) storage facilities. In addition to improving supervisory control and encouraging adherence to the established safety procedures, continuous monitoring helps organizations detect and resolve safety infractions more successfully. Additionally, the availability of recorded video can greatly improve the quality of incident investigations by assisting businesses and authorities in precisely identifying the underlying causes, differentiating between isolated incidents and systemic flaws, and putting corrective measures in place that lessen the chance of recurrence.  2. Enhanced Environmental Protection The proposed measures can help minimise the environmental risks associated with ammonium nitrate storage. Incidents involving AN, such as fires or explosions, have the potential to cause soil contamination, air pollution from hazardous combustion by-products, and water contamination through runoff. Continuous surveillance and early detection capabilities can also facilitate faster emergency response, thereby reducing the severity and environmental impact of such incidents. Furthermore, increased monitoring is likely to encourage better housekeeping practices, compliance with prescribed storage distances, proper drainage management, and the segregation of incompatible substances at storage sites. 3. Strengthening Ethical and Responsible Industry Practices The introduction of the enhanced surveillance and clearer regulatory controls is also expected to improve the transparency and accountability throughout the ammonium nitrate supply chain. Continuous monitoring and robust licence management can reduce the risk of diversion of AN for unauthorised or illegal purposes while creating a traceable record from manufacture or import through to end use. The amendments also promote the accountability among storehouse operators, transporters, contractors, and facility managers by ensuring that compliance activities are documented and verifiable. Importantly, these measures help to establish a level playing field across the industry by ensuring that all the licence holders are subject to consistent security and compliance requirements. Business Opportunities Emerging from the Proposed Amendments 1. Growth in Demand for CCTV and Security Integration Services The proposed mandatory surveillance requirements are expected to create significant opportunities for security technology providers, system integrators, and surveillance infrastructure companies. Businesses that can design, supply, install, and maintain CCTV systems in accordance with regulatory requirements are likely to experience increased demand from mining operators, construction companies, explosive manufacturers, and other licensed ammonium nitrate (AN) storage facilities. Particularly strong demand is expected for the specialized surveillance solutions, including pan-tilt-zoom (PTZ) cameras for large-area monitoring, infrared cameras for round-the-clock surveillance, explosion-resistant cameras for the hazardous environments, industrial-grade Network Video Recorders (NVRs), and secure remote-access platforms that enable regulatory oversight. In addition, long-term maintenance and support contracts are likely to become an important service segment as organizations seek to ensure continuous compliance. 2. Expansion Opportunities for Network Connectivity Providers The demand for dependable communication infrastructure will also rise as a result of the surveillance requirements, especially in remote mining and industrial areas where network connectivity may now be restricted. Businesses may need to upgrade or implement specialized connectivity solutions in order to facilitate ongoing surveillance and remote access by regulatory authorities. Telecom companies, IT infrastructure providers, and suppliers of connectivity solutions that offer satellite communication services, industrial-grade 4G/5G networking solutions, dedicated fiber connectivity, wireless leased lines, and other robust communication technologies will benefit from this. Therefore, it is anticipated that the proposed revisions will encourage investment in digital infrastructure in the mining, explosives, and manufacturing sectors.  3. PESO Licence Compliance Advisory (Direct Opportunity for Corpseed Corpseed can build an "Ammonium Nitrate Licence Compliance Pack": Service Target Client Fresh AN licence application (storage, possession, transport) New mining projects, quarries, and construction companies Licence renewal management (10-year cycle post 2025 amendment) Existing licence holders Licence transfer advisory and application (M&A, succession, restructuring) Mining companies in merger/acquisition processes CCTV compliance documentation and PESO interface Mining and explosives operators are setting up CCTV Third-party inspection agency (TPIA) coordination Certification and inspection-linked compliance 5. Increased Demand for Safety Audit and Compliance Services It is anticipated that the implementation of required CCTV surveillance at ammonium nitrate (AN) storage facilities will open up new opportunities for audit firms, safety consultants, and compliance experts. In order to evaluate regulatory preparedness, confirm surveillance coverage, and continue to comply with PESO standards, organizations will need more and more expert assistance. Pre-inspection compliance audits, yearly safety management reviews, CCTV system evaluations, and emergency response planning services are all possible offerings from the service providers. These services can also assist companies in finding compliance gaps, improving risk management procedures, and guaranteeing ongoing adherence to legal requirements.  6. Legal and Advisory Services for Licence Transfers There will probably be a need for specialized legal and regulatory advising services as a result of the planned licence transfer structure. Businesses can navigate ownership changes while adhering to regulations with the help of law firms, corporate advisors, and compliance consultants with experience in the explosives and chemical industries. Structuring mergers and acquisitions involving the ammonium nitrate licences, assisting with corporate restructuring projects, offering this guidance on succession planning for licence holders, and representing clients in PESO licence transfer proceedings are some of the major advisory opportunities. Expert advice in this area is anticipated to grow in value as companies look to minimize operational interruptions during the ownership changes.  Corpseed's Position in the Ammonium Nitrate Compliance Market For Corpseed, the 2026 draft amendments reinforce and expand an existing compliance service vertical: Explosive and Hazardous Chemical licensing (AN licence, PESO approvals) is already part of the regulatory compliance landscape Corpseed operates The CCTV compliance requirement creates an advisory angle helping mining and infrastructure clients understand what exactly is required, how to document it for PESO, and managing the PESO interface. The licence transfer reforms create a high-value advisory service for corporate clients navigating M&A in the mining and infrastructure sector. "The 2026 Draft AN Rules are Coming: Are Your Storehouses CCTV-Ready and Are Your Licences Transfer-Proof?"

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Summary: Implementation Date The India-Oman Comprehensive Economic Partnership Agreement (CEPA) officially entered into force on 1 June 2026. The electronic issuance of Preferential Certificates of Origin (eCoO) through the Trade Connect ePlatform became operational from the same date. All exporters availing benefits under the India-Oman CEPA must obtain Certificates of Origin electronically through the notified digital platform from 1 June 2026 onwards. What This DGFT Notification Covers DGFT has amended Appendix 2B of the Foreign Trade Policy (FTP) 2023, officially notifying the agencies authorised to issue Preferential Certificates of Origin under India-Oman CEPA .  This notification explains which government agencies, and organisations are authorised to issue valid origin certificates for exports seeking preferential tariff benefits in Oman. Notified Authorised Agencies Include: Directorate General of Foreign Trade (DGFT) and its regional offices Export Inspection Council (EIC) Agricultural and Processed Food Products Export Development Authority (APEDA) Marine Products Export Development Authority (MPEDA) Central Silk Board Coir Board Spices Board Textile Committee Tobacco Board Development Commissioner for Handicrafts Special Economic Zones (SEZs) and designated authority offices This update brings in transparency for the exporters and improves the implementation framework of India-Oman CEPA by identifying the competent authorities for issuing valid Preferential Certificate of Origin. Impact on Indian Businesses The eCoO framework under the India-Oman CEPA will impact exporters, importers, issuing agencies and trade service providers directly. To enjoy preferential tariff benefits, businesses must adapt to the new digital certification process. 1. Exporters to Oman (Direct Impact) Business Type Impact Manufacturing Exporters Must obtain eCoO from authorised agencies through Trade Connect platform to claim 0% tariff on eligible goods Agricultural Exporters APEDA-approved exporters can get eCoO for rice, spices, processed food, fruits, vegetables Marine Product Exporters MPEDA-authorised agencies issue eCoO for fish, seafood, and marine processed products Textile Exporters Textile Committee-authorised agencies can issue eCoO for textiles, garments, yarn, and spinning products eligible under India-Oman CEPA. Pharmaceutical Exporters Can claim duty-free access for finished pharmaceuticals, vaccines, and APIs, replacing 5% MFN tariff MSME Exporters Improved competitiveness against suppliers from other countries, easier market access into Oman 2. Omani Importers (Indirect Impact) Business Type Impact Omani Importers of Indian Goods Must request a valid eCoO from Indian exporters to claim a preferential tariff at customs clearance Omani Distributors Can source directly from India at zero duty, improving profit margins and competitiveness 3.  Authorised Issuing Agencies (Operational Impact) Agency Type Impact Government Boards Must integrate with Trade Connect ePlatform for digital CoO issuance, increased workload for certificate processing Special Economic Zones SEZ authorities become certificate-issuing points for exports from zone units Export Promotion Councils Enhanced role in facilitating CoO issuance for member exporters 4. Trade Service Providers (New Opportunities) Service Type Impact Customs Consultants Can offer eCoO application assistance and compliance advisory services Logistics Companies Need to understand eCoO documentation requirements for Oman shipments Export Documentation Firms Demand for digital CoO application support and QR code verification services How Businesses Will Achieve Compliance Businesses must follow the prescribed eCoO process to claim CEPA benefits without disruption. Proper documentation and timely applications will ensure smooth customs clearance and duty savings. Step-by-Step Compliance Process- Validate Product Eligibility: Verify if your product is listed in the CEPA tariff schedule of Oman, and is eligible for preferential treatment. Confirm Rules of Origin Compliance: Goods must comply with the requirements of the CEPA Rules of Origin (typically 40% Regional Value Content or product specific rules). Register on DGFT Services Portal: Log in at the DGFT portal with valid IEC (Importer Exporter Code) and DSC (Digital Signature Certificate). Select Agreement Category: Choose "India Oman CEPA (Agency Issued)" as the agreement while submitting applications. Choose Authorised Issuing Agency: Select from the list of notified agencies available on Trade Connect ePlatform based on your product category. Upload Required Documents: Submit export invoice, packing list, shipping bill, bill of materials, cost certificate, and RoO declaration. Obtain Approval: After agency review and approval, download the digitally signed eCoO (PDF with QR code). Use eCoO at Oman Customs: Omani importer presents the electronic CoO to claim preferential duty at customs clearance. Documents Required for Preferential CoO Before applying for a Preferential Certificate of Origin under India-Oman CEPA, exporters should keep all required documents ready. Having the necessary paperwork ready can help avoid delays, and make the application process smoother. Export Invoice Packing List Bill of Lading / Airway Bill Declaration of Origin (self-declaration by exporter) Manufacturing Process Details Product HS Code (8-digit classification) Trade Agreement Reference (India-Oman CEPA) Bill of Materials and Cost Certificate from a Chartered Accountant Any additional documents required by the agreement Compliance Timeline Timely completion of each stage of the eCoO process is essential to avoid shipment delays and ensure that importers in Oman can successfully claim preferential duty benefits. Exporters should plan documentation and application submissions well in advance of dispatch schedules. Action Deadline Register on DGFT Services Portal Before the first export shipment to Oman Apply for eCoO Before goods clear Indian customs for export Obtain Approved eCoO Within 3-5 working days of application submission Submit eCoO to the Omani Importer Before Oman customs clearance Benefits Businesses Get After Implementation The agreement creates significant opportunities through lower tariffs and simplified trade procedures. Businesses can improve competitiveness and expand their presence in the Omani market. 1. For Indian Exporters Benefit Impact Zero Import Duty Access 98.08% of Oman's tariff lines receive duty-free treatment (0% tariff), covering 99.38% of bilateral trade value Improved Price Competitiveness Removal of 5% import duty on numerous Indian exports makes products more competitive against other suppliers Faster Market Access Shorter customs waiting times and smoother clearance processes in Oman Increased Export Volume Lower tariffs encourage Omani importers to source more from India Pharmaceutical Market Expansion Duty-free access for finished pharmaceuticals, vaccines, and APIs replaces up to 5% MFN tariff MSME Growth Opportunities Enhanced opportunities for small manufacturers to participate in Omani government and private sector projects GCC Market Expansion Potential expansion into neighboring GCC markets through Omani distribution networks 2. For Omani Importers Benefit Impact Lower Import Costs Zero duty on 98% of tariff lines reduces procurement costs from India Better Profit Margins Duty savings can be retained as margin or passed to consumers for competitive pricing Supply Chain Stability Direct sourcing from India with preferential treatment strengthens supply chain reliability Diverse Product Selection Expanded access to Indian agricultural, textile, pharmaceutical, and manufactured goods 3. For Indian Economy Benefit Impact Bilateral Trade Growth CEPA is expected to accelerate trade and strengthen supply chains between India and Oman Export Diversification Key beneficiaries include textiles, leather, plastics, marine products, automobiles, agriculture, and manufactured goods GCC Trade Route Creates a vital trade route to Gulf region, bypassing the conflict-ridden Strait of Hormuz Investment Opportunities Institutional frameworks established for long-term economic cooperation and investment Is This a Right Decision or Additional Burden? The digital eCoO system strengthens transparency and trade facilitation under India-Oman CEPA. Although initial compliance requirements may challenge some MSMEs the long-term benefits outweigh the short-term adjustments. 1. Arguments for "Right Decision" Reason Explanation Trade Facilitation Digital eCoO system streamlines certification, reduces paperwork, and improves efficiency in trade documentation Authenticity & Security QR-based verification and digital signatures strengthen trust and reduce risks of tampering or fraudulent documentation Ease of Doing Business Unified Trade Connect platform serves as a single digital gateway for all electronic Certificates of Origin for Indian exports Transparency Notified Agencies List provides clarity for exporters on competent authorities for certificate issuance Competitiveness Boost 97.96% of tariff concessions effective from Day One accelerates trade growth and market access Strategic Economic Corridor CEPA opens strategic trade route to Gulf region, bypassing geopolitical conflicts MSME Support Improved opportunities for small businesses to access international markets with preferential treatment 2. Arguments for "Additional Burden" Concern Impact Digital Platform Learning Exporters unfamiliar with Trade Connect ePlatform may face initial technical challenges Registration Requirements Need valid IEC, RCMC, and DSC for online application submission creates upfront compliance requirements Processing Time Agency review and approval may take 3-5 working days, requiring advance planning before shipment Documentation Burden Bill of materials, cost certificates, and RoO declarations require detailed record-keeping and CA involvement Fee Costs CEPA Certificate of Origin registration costs Rs 3,208 (excluding GST), adding to export compliance expenses Validity Tracking Certificate remains valid for 12 months only, exporters must track expiration and apply for re-issuance Balanced Verdict: This is a strategically correct and highly beneficial decision by DGFT. The digital eCoO system, notified agencies list, and CEPA tariff concessions create significant export opportunities for Indian businesses. The burden is minimal and manageable compared to the substantial benefits of zero-duty access to 98% of Oman's tariff lines. However, DGFT should provide user training, helpdesk support, and simplified application interfaces to assist MSMEs new to digital compliance. How This Amendment Improves Quality and Consumer Satisfaction While Certificate of Origin primarily facilitates tariff benefits rather than quality control, it indirectly improves consumer satisfaction through: 1. Enhanced Supply Chain Transparency Verification of QR code ensures genuine origin documents and reduces the proliferation of fake products. Digital signatures provide traceability of product origin from Indian manufacturer to Omani consumer. Better documentation means fewer customs delays and faster delivery of products to consumers. 2. Better Price Competitiveness Zero duty on Indian exports allows Omani importers to offer lower prices to consumers. Reduced import costs enable retailers to pass savings to end consumers. Competitive pricing increases accessibility of quality Indian products in Omani markets. 3. Increased Product Quality Standards CEPA's Rules of Origin requirements ensure products meet minimum value-addition criteria in India. Exporters must maintain manufacturing process documentation, improving quality control systems. Cost certificates from Chartered Accountants verify authentic production costs, reducing fraud. 4. Consumer Trust Enhancement Valid eCoO provides country-of-origin assurance to Omani consumers. QR verification enables consumers to authenticate product origin before purchase. Preferential treatment signals quality-grade products eligible for trade agreement benefits. Business Opportunities Created The implementation of India-Oman CEPA creates new opportunities for compliance consultants, export facilitators, and technology providers. Businesses offering advisory and digital support services can help exporters navigate the evolving trade landscape efficiently. 1. Corpseed DGFT Compliance Consulting Services Service Businesses India-Oman CEPA product eligibility analysis Exporters planning Oman shipments Rules of Origin compliance advisory Manufacturing exporters eCoO application assistance on Trade Connect MSME exporters are new to the digital platform RoO declaration and cost certificate preparation Exporters requiring CA documentation CEPA tariff schedule verification services Exporters checking product eligibility 2. Export Facilitation Services Service Type Description Trade Connect Platform Training Conduct workshops for MSMEs on using the digital eCoO platform DGFT Portal Registration Support Help exporters complete IEC, RCMC, and DSC registration requirements Documentation Review Services Verify export invoices, packing lists, and bills of materials before submission Customs Advisory for Oman Exports Guide exporters on Oman customs clearance requirements with eCoO 3. Other Corpseed Advisory Services Agency Type Service Export Promotion Councils Consultancy on becoming DGFT-authorised CoO issuing agencies Special Economic Zones Training SEZ authorities on eCoO issuance procedures and digital platform integration Government Boards (APEDA, MPEDA) Process optimization for digital certificate issuance and QR verification systems 4. Export Market Expansion Advisory Service Businesses CEPA tariff benefit analysis for exporters Automotive, textile, and pharmaceutical exporters Omani distributor network development Agricultural, marine, and processed food exporters GCC market expansion through Oman Textile, leather, and plastic manufacturers Government tender assistance in Oman Construction, engineering, and ICT companies 5. Digital Compliance Technology Solutions Solution Type Description eCoO Application Automation Software SaaS platform for repetitive CoO applications with auto-fill features QR Code Verification Tools Integration with Trade Connect platform for authenticity checks CEPA Compliance Dashboard Real-time tracking of tariff concessions, eligibility, and certificate validity Document Management System Centralized storage for bills of materials, cost certificates, and export documents

Subject

Summary: The Central Government has amended the import policy condition for Urea (Exim Code 31021010) under ITC (HS) 2022, Schedule I. Through Notification, issued under the Foreign Trade (Development and Regulation) Act, 1992, and aligned with the Foreign Trade Policy 2023, the State Trading Enterprise (STE) status of Indian Potash Limited (IPL) has been extended. As per the amendment, Indian Potash Limited will continue to handle the import of agricultural-grade Urea on the government account up to 31 March 2027. This extension ensures continuity in the existing import framework and avoids disruption in fertilizer supply. The import remains subject to Para 2.21 of FTP 2023, which governs imports through State Trading Enterprises. No other changes have been introduced, and all previous conditions prescribed under earlier notifications remain unchanged. This move provides regulatory clarity and strengthens the controlled import mechanism for Urea, ensuring timely availability for agricultural needs while maintaining policy consistency.

Subject

Summary: The Central Government has amended the export policy for wheat under ITC (HS) Codes 10011900 and 10019910 through Notification S.O. 1769(E), issued under the Foreign Trade (Development & Regulation) Act, 1992, and the Foreign Trade Policy, 2023. The export policy for wheat continues to remain “Prohibited.” However, a limited relaxation has been introduced. Export of up to 25 Lakh Metric Tonnes (LMT) of wheat is now permitted. The Directorate General of Foreign Trade (DGFT) will issue a separate Public Notice detailing the procedure, eligibility, and operational modalities for this permitted quantity. Importantly, the earlier condition under DGFT Notification No. 06/2015-2020 dated May 13, 2022, remains in force. Accordingly, wheat exports may also be allowed beyond the 25 LMT cap based on specific approvals granted by the Government of India to other countries, particularly to address food security requirements upon their request. This amendment reflects a calibrated approach, balancing domestic supply concerns with international obligations and strategic export commitments.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has notified an amendment to the Import Policy under Chapter 29 of ITC (HS) 2022, Schedule-I, with immediate effect. The notification has been issued by exercising powers granted under Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with the Foreign Trade Policy 2023. Through this amendment, DGFT has introduced Policy Condition No. 07 to regulate imports of Potassium Clavulanate, diluted Potassium Clavulanate, and specified intermediates based on CIF value. Imports of diluted Potassium Clavulanate with a CIF value below USD 77 per kg and Potassium Clavulanate below USD 180 per kg have been placed under the “Restricted” category until 30 November 2026. Further, imports of intermediates used in the manufacture of Clavulanic Acid or Potassium Clavulanate, priced below USD 92 per kg, are also restricted for the same period. These restrictions do not apply to Advance Authorisation holders, Export Oriented Units, or SEZ units, provided the imported goods are not supplied to the Domestic Tariff Area. Relevant ITC (HS) codes have been amended accordingly.

Subject

Summary: The Ministry of Commerce & Industry has amended Para 4.63 of the Foreign Trade Policy 2023, effective immediately. Under the reviewed provision, imports made under Diamond Imprest Authorisation (DIA) continue to be exempt from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty, wherever applicable. The key update now also exempts DIA imports from the Integrated Tax and Compensation Cess as levied under sub-sections (7) and (9) of section 3 of the Customs Tariff Act, 1975. This change clarifies that the full spectrum of statutory duties and cesses will not apply to goods imported under DIA, reducing the overall tax burden for eligible importers in the diamond sector. The amendment has been issued under the powers of Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, and paragraph 1.02 of the Foreign Trade Policy 2023, with approval from the Minister of Commerce & Industry. The practical effect is broader duty relief to support competitiveness in the import and processing of rough diamonds.