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What Will Be the Impact of SEBI's New Monthly Custodian Fee Payment Rules?Summary: The Securities and Exchange Board of India (SEBI) has amended the SEBI (Custodian) Regulations, 1996, to change the payment frequency of custodian registration fees from an annual basis to a monthly basis. The amendment will come into effect on 1 October 2026. This is primarily an operational change rather than a financial one. It does not introduce a new fee or significantly increase the overall registration cost for custodians. Instead, it changes the timing of fee payments and requires custodians to submit their Assets under Custody (AUC) details monthly rather than once a year. The amendment is intended to improve regulatory oversight while making fee payments more regular and aligned with business activity. Key Highlights of the SEBI Notification Issuing authority: Securities and Exchange Board of India (SEBI), Mumbai. Regulation amended: SEBI (Custodian) Regulations, 1996 (last amended 23 September 2025). Effective date: 1 October 2026 (a fixed future commencement date, unlike the mutual fund amendment, which took immediate effect). Key changes 1. Regulation 9(d) and Regulation 26(i): The word "annual" is replaced with "monthly" wherever it appears regarding fee payment. 2. Second Schedule, Part A, clause (iii) fee amount itself: The amendment also revises the fee structure under Part A, Clause (iii) of the Second Schedule. Earlier Fee Structure Annual fee of Rs 10,00,000 (Rs 10 lakh), or 0.0005% of the Assets Under Custody (AUC), Whichever is higher. Revised Fee Structure Monthly fee of Rs 85,000, or 0.0000416% of the monthly Assets Under Custody (AUC), Whichever is higher. Although the payment frequency has changed, the annual financial impact remains almost the same. Paying Rs 85,000 per month amounts to approximately Rs 10.20 lakh per year, which is only marginally higher because of rounding. This indicates that SEBI has restructured the payment schedule rather than increasing the registration fee. 3. Second Schedule, Part B, clause (II) payment mechanics: The amendment introduces a new payment mechanism for both existing and newly registered custodians. For New Custodians (Registered on or after 1 October 2026) A proportionate fee will be payable for the month in which registration is granted. From the following month onwards, the full monthly registration fee must be paid. Every payment must be made within 15 days from the end of the relevant month. For Existing Custodians (Registered before 1 October 2026) They must pay a proportionate annual fee for the remaining period of FY 2026-27. This payment must be made within 15 days from the commencement of the amendment. Any annual registration fee already paid for a period extending beyond 1 October 2026 will be adjusted against the revised fee payable. Starting the following month, custodians must switch to the monthly payment system. 4. Reporting requirement (sub-clause 4): Custodians must now submit their Assets under Custody (AUC) statement every month (instead of annually) along with the fee payment, in a SEBI-specified format, certified by the Functional Head of Custody Services as accurate and complete. Why Has SEBI Introduced This Change? SEBI has introduced this amendment to make the registration fee framework more efficient, improve regulatory reporting, and align fee payments more closely with the actual scale of custodial business. Aligning fee cash flows with actual business activity: Custodian AUC balances fluctuate throughout the year with market movements, fund inflows/outflows, and new client onboarding. An annual fee based on a single point-in-time AUC snapshot can be a poor proxy for the custodian's actual scale of business over the full year. Monthly fees based on monthly AUC make the fee structure more dynamically accurate. Improved regulatory oversight through more frequent data: Requiring a monthly AUC statement (rather than annual) gives SEBI far more granular, timely visibility into custodian balance sheets and market-wide custody trends useful for systemic risk monitoring, especially as India's AUM/AUC base has grown substantially. Smoothing SEBI's own fee revenue and administrative cash flow: Annual lump-sum collection creates uneven cash inflows for SEBI, monthly collection provides steadier, more predictable regulatory fee revenue. Reducing large one-time payment burden on custodians: Paying Rs 85,000/month (or the AUC-based equivalent) is administratively easier for many custodians than budgeting for a single Rs 10+ lakh annual outflow, improving cash flow predictability on the custodian's side too. Consistency with other SEBI fee-frequency reforms: SEBI has been moving multiple categories of market intermediaries toward more frequent, data-linked fee and reporting cycles as part of a broader modernization of its regulatory fee framework, improving real-time regulatory data rather than annual retrospective snapshots. Compliance Requirements for Custodians To ensure a smooth transition to the new fee payment framework, SEBI has prescribed separate compliance requirements for existing and newly registered custodians. In addition to changing the payment frequency, custodians will also need to adopt a monthly reporting process for their Assets under Custody (AUC). For Existing Custodians (Registered Before 1 October 2026) Custodians already registered before the amendment comes into effect must comply with the following requirements: Pay the Transition Fee: A proportionate annual registration fee for the remaining period of FY 2026-27 (1 October 2026 to 31 March 2027) must be paid within 15 days from 1 October 2026. Adjust Previously Paid Fees: If an annual registration fee has already been paid for a period extending beyond 1 October 2026 the amount will be adjusted against the revised fee payable under the new framework. Begin Monthly Fee Payments: From November 2026 onwards, custodians must pay the applicable monthly registration fee within 15 days after the end of each month. Submit Monthly AUC Statements: Every monthly fee payment must be accompanied by an Assets under Custody (AUC) statement in the format prescribed by SEBI. The statement must also be certified by the Functional Head of Custody Services. For New Custodians (Registered On or After 1 October 2026) Custodians obtaining registration on or after 1 October 2026 must comply with the following requirements: Pay a proportionate registration fee for the month in which registration is granted. Pay the full monthly registration fee from the following month onwards within 15 days from the end of each month. Submit a certified monthly AUC statement along with every monthly fee payment from the beginning of their registration. Operational Changes Required for Compliance To comply with the amended regulations, custodians will need to update their internal processes and systems. While the overall fee remains largely unchanged, the monthly compliance cycle requires several operational adjustments. Operational/systems changes needed Finance and treasury teams must move from an annual fee-budgeting cycle to a monthly recurring payment process requiring updated internal calendars, approval workflows and possibly automated payment scheduling. AUC reporting systems must be capable of generating accurate monthly (not just annual) AUC figures, since the fee is based on AUC in that specific month. Certification workflow: The Functional Head of Custody Services must review and certify each monthly AUC statement formalizing an internal monthly sign-off process where an annual one previously sufficed. Fee calculation logic: Systems need to compute the higher of (Rs 85,000 flat) or (0.0000416% of that month's AUC) every month, rather than once a year. Benefits Businesses (Custodians) Get Although the amendment introduces more frequent reporting, it also offers several operational and financial advantages for custodians. Improved Cash Flow Management: Replacing a single annual payment with monthly payments spreads the financial outflow across the year. This allows custodians to manage their cash flows more efficiently and makes budgeting easier, particularly for mid-sized institutions. Better Alignment between Fees and Business Size: Since the AUC-based fee is calculated every month, the registration fee reflects the custodian's current level of business more accurately. Organisations with fluctuating AUC will no longer rely on a single annual snapshot that may not represent their overall operations. Reduced Upfront Financial Burden: Monthly payments eliminate the need to arrange a large lump-sum payment once a year. This improves working capital management and allows organisations to distribute compliance costs more evenly throughout the year. More Consistent Regulatory Compliance: Submitting monthly AUC statements encourages continuous compliance instead of concentrating reporting activities into a single annual exercise. This can help custodians maintain better regulatory records as well as strengthen internal compliance practices. Who Benefits Most vs Who Faces More Burden Aspect Larger/Established Custodians Smaller/Newer Custodians Cash flow impact Minimal large balance sheets easily absorb monthly vs annual timing More favourable spreads cost, easing working capital pressure Reporting infrastructure Likely already capable of monthly AUC reporting May need to build new monthly reporting/certification processes Compliance overhead Marginal increase (12 filings vs 1) Proportionately larger burden relative to their compliance team size Net effect Slight administrative increase, otherwise neutral Net positive on cash flow, but added reporting workload Since only a handful of SEBI-registered custodians operate in India (mainly banks and large financial institutions offering custody services, e.g., major banks and specialized custody arms of financial groups), this amendment is a sector-specific, relatively low-impact operational change rather than one affecting large numbers of businesses. Impact on India's Economy Although the amendment affects only a small group of SEBI-registered custodians, it strengthens regulatory oversight and improves the efficiency of the compliance framework without creating any significant economic impact. Positive Impact Better Regulatory Oversight: Monthly AUC reporting gives SEBI access to more timely and accurate data, helping it monitor custody-related risks more effectively and strengthen oversight of India's growing capital markets. Improved Cash Flow Planning: Monthly fee payments replace a single annual payment, making it easier for custodians to manage cash flows and budget compliance expenses throughout the year. Supports Regulatory Modernisation: The amendment aligns with SEBI's broader objective of introducing more frequent reporting and improving the efficiency of regulatory supervision across market intermediaries. Limited Economic Impact: Since the amendment applies only to a limited number of custodians, it is unlikely to have any significant impact on India's overall economy or financial markets. Impact on India and Other Countries Limited to India: The amendment applies only to SEBI-registered custodians operating in India and has no direct impact on foreign regulatory frameworks. Global Custodians in India: International custody service providers operating in India must update their Indian compliance and reporting processes, while their overseas operations remain unaffected. No Cross-Border Market Impact: The amendment is an administrative compliance reform and is not expected to influence global financial markets or international regulations. Is This the Right Decision, or an Additional Burden? Overall, the amendment is a balanced regulatory reform. While it introduces more frequent reporting requirements, it does not significantly increase the financial burden on custodians. Instead, it modernises the fee payment framework, and maintains regulatory oversight. Why This Is a Positive Change No significant increase in registration fees: Although the payment frequency changes, the annual fee remains almost the same. This confirms that the amendment is aimed at improving the payment structure rather than increasing costs. Better alignment with business activity: Monthly AUC-based fee calculations reflect the custodian's actual scale of operations more accurately than a single annual assessment. Well-planned transition: SEBI has provided a clear implementation timeline, allowing custodians sufficient time to update their systems, processes, and compliance workflows before the amendment takes effect. Improved regulatory efficiency: Monthly reporting enables SEBI to monitor market developments more effectively and respond to potential risks in a timely manner. Additional Compliance Requirements More frequent reporting: Custodians must now submit 12 AUC statements each year instead of one annual statement. System and process upgrades: Organisations may need to update their finance, reporting, and internal approval systems to support monthly fee calculations, payments, and certifications. Overall Assessment The amendment is more of an operational change than a significant compliance burden. While custodians will have to move to monthly fee payments and reporting, the overall cost remains almost the same, making the transition practical and manageable. How This Improves Quality, Transparency, and Market Conditions The amendment strengthens regulatory transparency by introducing more frequent reporting, improving data quality and supporting more effective supervision of custodians. Stronger Regulatory Oversight Monthly AUC reporting provides SEBI with more timely and reliable information, enabling better supervision of custodians and improving its ability to identify potential risks within the financial system. Improved Data Accuracy The requirement for certification by the Functional Head of Custody Services strengthens accountability and encourages organisations to maintain accurate and up-to-date custody records. Better Protection of the Financial System Although custodians do not directly deal with retail investors, they play a critical role in safeguarding assets held by mutual funds, pension funds, insurance companies, and foreign portfolio investors. Better regulatory visibility over custodians indirectly supports the safety and integrity of India's capital markets. No Environmental Impact The amendment relates solely to the payment of registration fees and reporting requirements. It does not have any direct environmental or sustainability implications. Implementation Timeline The following timeline highlights the key compliance deadlines under the SEBI (Custodian) (Amendment) Regulations 2026, helping stewards prepare for a smooth transition to the new framework. Date Event 16 May 1996 Original SEBI (Custodian) Regulations, 1996, published 23 September 2025 Last prior amendment to Custodian Regulations 3 July 2026 SEBI (Custodian) (Amendment) Regulations, 2026 notified 1 October 2026 Amendment comes into force monthly fee regime begins Within 15 days of 1 October 2026 Existing custodians must pay a proportionate annual fee for remainder of FY 2026-27 From November 2026 onward Full monthly fee and monthly AUC statement due within 15 days of each month-end Corpseed Offering: Ensuring Seamless Compliance with the New Amendment Since SEBI-registered custodians are a small, concentrated group of large financial institutions, Corpseed's opportunity here is narrower but high-value: 1. Transition Compliance Advisory Help custodians calculate the correct proportionate annual fee for the FY 2026-27 transition period, including adjustment credits for fees already paid, ensuring accurate payment within the 15-day window after 1 October 2026. 2. Monthly Fee and AUC Reporting Process Design Design and implement a recurring monthly compliance calendar/process for fee calculation, payment and AUC statement submission, replacing the old annual cycle. 3. Internal Certification Workflow Support Help custodians formalize the internal sign-off process by the Functional Head of Custody Services, ensuring monthly AUC statements are accurate, complete and audit-ready. 4. SEBI Format Compliance Track and advise on the SEBI-specified format for monthly AUC statements once formally circulated, ensuring custodians' reporting templates stay aligned with regulatory expectations. 5. Regulatory Monitoring Subscription Given SEBI's pattern of issuing multiple related amendments together (custodian fees, mutual fund borrowing, on the same date), offer custodians and AMCs a consolidated regulatory tracking service covering all SEBI notifications affecting their specific business line. 6. Training for Finance and Compliance Teams Conduct focused sessions for custodian finance and compliance teams on the new fee mechanics, transition-period calculations, and monthly reporting obligations ahead of the 1 October 2026 effective date.
Subject
Meghalaya SPCB Revises Environmental Sampling and Analysis Charges with New Fee NotificationSummary: The Meghalaya State Pollution Control Board (MSPCB) has updated the prices it charges for testing air, water, soil, noise, and hazardous waste samples. This is the first change in these prices since 2010 - meaning the old rates were 16 years old before this update. The new prices were announced on 29th June 2026 and cover everything from basic tests, like checking water clarity, to advanced tests, like detecting harmful chemicals called dioxins. Any factory, industry, or business in Meghalaya that is required by law to get pollution testing done through MSPCB will now need to pay according to this new price list. What the Notification Actually Says Let's break down the official announcement into small, easy pieces: Who announced it: This is the government department that made the announcement - the Meghalaya State Pollution Control Board, which works under the Forests & Environment Department of the Meghalaya Government. Under which law: The Board used its legal powers given under two important environmental laws - the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981. Simply put, these laws allow the Board to charge fees for testing pollution. How it was approved: Before making the new price list final, the Board's own members discussed and approved it in a meeting called the 95th Board Meeting, held on 13th May 2026. When it started: The new prices became official the very same day the notice was issued - 29th June 2026 - and they will stay in effect until the Board decides to change them again. There is no end date mentioned. What the revised schedule covers The new price list is divided into five main groups. Think of it like a menu card with different sections: Sampling charges: This is the fee for a Board officer to travel to a factory or site and collect a sample of air, water, soil, or waste. It covers testing for air pollution, chimney (source) emissions, noise levels, water and wastewater, soil, and hazardous (dangerous) waste. Analysis charges: This is the fee for actually testing the sample in the laboratory. It ranges from very basic and cheap tests - like checking the pH (how acidic or basic something is) or how clear the water is - all the way up to very advanced and expensive tests, such as checking for a highly toxic chemical group called Dioxin-Furan, which costs Rs. 75,000 for just one sample. The list also covers heavy metals, pesticides, and a group of harmful chemicals called PCBs. Extra costs: If a Board officer needs to travel to collect a sample, or if any government tax applies, these extra costs are added on top of the listed prices - they are not included in the base price. Discount for students: If a student or a research scholar sends a sample purely for their studies or research project, they only have to pay half (50%) of the normal testing fee. Why MSPCB Implemented This Revision Just like the haircut example, there are good, practical reasons behind this price update: The old prices were 16 years old: The last price list was made in 2010. Since then, the cost of chemicals, lab equipment, machine servicing, and paying trained scientists has gone up a lot. The old prices were too low to cover today's real costs. New machines cost more to run: Modern pollution testing now uses very advanced and costly machines - for example, one called GC-HRMS (used to detect dioxins) and another called ED-XRF (used to detect tiny traces of metal). Running and maintaining these machines is expensive, so the fees needed to be updated to match. The lab needs enough money to keep working: The Board runs its own laboratory to check if factories are following pollution rules. If the fees charged are too low, the lab does not earn enough money to keep working properly, pay its staff, or buy new equipment. More tests are now offered: The new list includes many more types of tests than before, covering dozens of specific chemicals and substances. This shows the lab can now test for far more things than it could in 2010, so the price list needed to grow along with it. Matching prices used in other states: Other states in India also update their pollution-testing fees from time to time. Meghalaya's update likely brings its prices closer to what other states are already charging for similar tests. Compliance Requirements for Businesses Any factory, industry, or business in Meghalaya that is legally required to get its air, water, soil, or waste tested by MSPCB - usually as a condition of its operating permit - now needs to keep the following points in mind: Plan for higher fees: Businesses should plan their yearly budgets around the new, higher prices for getting samples collected and tested. Remember the extra charges: Remember that travel costs for the sampling officer and any applicable taxes are charged separately, on top of the listed prices - so the final bill will be higher than just the table price. Budget more for advanced tests: Tests for complex substances, such as Dioxin-Furan (Rs. 75,000 per sample), cost far more than simple tests like pH or turbidity (which cost only Rs. 150 to Rs. 250). Businesses that need these advanced tests should set aside a much larger budget. Plan around how often testing is needed: Since the fee is charged for every sample, every parameter (thing being tested), and every visit, businesses that need regular repeat testing - for example, every three months - should plan their total yearly testing costs carefully in advance. Keep using official MSPCB testing: Wherever the law requires official testing, businesses must continue using MSPCB's services and pay according to the new price list. Students should claim their discount properly: Students and research scholars who want the 50% discount must properly show and prove that their samples are for educational or research purposes. Benefits Businesses Get While the new prices are higher, businesses also gain some real advantages: A wider range of tests, all in one place: Because the lab can now test for so many more substances, businesses may no longer need to send their samples to laboratories outside Meghalaya, saving them time and extra transport costs. Easier to plan a budget: A clear, detailed price list means businesses know exactly what they will be charged, instead of guessing or negotiating costs each time. Better and faster lab service: With more money coming in, the lab can keep its machines working well and may be able to process samples and give results faster. A discount for supporting research: Businesses that support or work with research institutions can benefit from a 50% discount on related sample testing. Who Is Impacted Most / Faces Higher Costs Meghalaya has a strong presence of mining (especially coal and limestone), cement-making, and small-scale factories. Because these industries usually require frequent pollution testing, they are most likely to feel the impact of higher fees. What Was the Requirement for This Policy In simple terms, the Board needed a new price list because the 2010 version no longer matched reality. Specifically, MSPCB needed a notice that would: Reflect today's costs: Match the actual costs of chemicals, equipment maintenance, and skilled staff required to run a modern lab. Cover modern testing methods: Include pricing for many new kinds of tests - such as metal detection and dioxin testing - that either did not exist or were not priced back in 2010. Stand on solid legal ground: Be backed by proper legal authority, using the powers already given to the Board under the Water Act and the Air Act. Impact on India's Economy Direct impact (localized) This is a fee change made by one state's pollution board. It only directly affects businesses in Meghalaya that need MSPCB's testing services - it does not reach beyond the state. Broader/indirect considerations A small rise in business costs: Mining, cement, and manufacturing businesses in Meghalaya will see a small but real rise in the cost of following environmental rules. Support for better environmental protection: A properly funded testing lab helps enforce environmental rules more effectively, which supports cleaner and more sustainable industrial growth in the state. No real effect on the national economy: Because this change is limited to one state and one government department's internal fee list, it has almost no effect on India's overall economy or GDP. Impact on India and Other Countries This is purely a state-level administrative decision. It does not involve any other country, does not affect international trade, and has no connection to India's global environmental commitments. Its effect is limited only to businesses and institutions that need pollution testing done in Meghalaya. Is This the Right Decision, or an Additional Burden? Why does this look like a fair and reasonable decision? Long-overdue update: Going 16 years without updating a lab's fees is unusually long. Costs of chemicals, machines, and skilled workers have clearly gone up in that time, so the old prices could no longer support quality testing. Clear and well-organised: The new price list is detailed and well-organised, listing a clear price for every test. This kind of transparency is good practice and is fairer than vague or negotiated pricing. Considerate of students: Giving students and researchers a 50% discount shows the Board is being thoughtful about people who are not doing this for profit. Does not create a new legal duty: This is not a brand-new rule - businesses were already legally required to get this testing done. Only the price of an existing requirement has changed, not the requirement itself. Where does it create a burden? No transition time was given: The new prices apply immediately from 29th June 2026, giving businesses no advance notice period to prepare or adjust their budgets. Costs can add up quickly for smaller businesses: For small and medium businesses that test many parameters often, all these costs (sampling, lab testing, travel, and tax) can add up quickly, especially if they have been budgeting using old 2010-level prices. Advanced tests are genuinely expensive: Businesses that need advanced testing, such as Dioxin-Furan or a full set of metal, pesticide, or PCB tests, will face a genuinely large bill for a single round of testing. Taking everything into account: This update looks like a fair and overdue correction rather than an unfair new burden. The rules businesses must follow have not changed - only the price of getting the required testing done through MSPCB has been brought up to date. How does this Improve Quality, Consumer Satisfaction, and Environmental Conditions? Quality of environmental monitoring When a lab is paid fairly for its work, it can keep its machines in good condition, keep its trained scientists employed, and use advanced testing methods. This directly improves how accurately and reliably pollution is measured in the state. A well-funded lab is also better able to spot dangerous pollutants - like certain metals and dioxins - that could otherwise go unnoticed and harm health. Environmental protection outcomes With more funding, the Board can more strongly enforce the Water Act and Air Act, making sure industries - including mining and cement companies - are meeting proper, science-based pollution standards. Since the new price list also covers hazardous waste, soil, and water testing, it helps protect Meghalaya's rivers, forests, and overall natural environment more thoroughly. Public/consumer benefit (indirect) More reliable pollution testing means cleaner air and water for the people living in and around industrial and mining areas. In addition, having a clear, published price list makes the whole system more open and predictable, reducing the chances of unfair or inconsistent charges being applied to businesses. Implementation Timeline The new price list did not follow a slow, step-by-step rollout. It became effective on the very day it was issued - 29th June 2026 - and applies immediately to all future sampling and testing requests, with no separate waiting or transition period mentioned in the notice. It will continue to apply until the Board decides to revise it again in the future. Corpseed Offering: Ensuring Seamless Compliance with the New Amendment This change opens up a clear set of ways to help businesses in Meghalaya - especially those in mining, cement, manufacturing, and hazardous waste handling - stay on top of the new rules smoothly: Compliance Cost Budgeting Advisory: Helping industries match their existing testing obligations (as set out in their permits or clearances) against the new price list so that they can build an accurate yearly compliance budget. Sampling and Testing Coordination Services: Managing the entire process with MSPCB on a business's behalf - scheduling sample collection, submitting samples, and tracking when results will be ready, especially useful for businesses with several recurring tests. Parameter Optimization Advisory: Guiding industries on exactly which tests are legally required under their specific permit conditions, so they avoid spending money on extra, unnecessary tests. Hazardous Waste Compliance Support: Offering specialised support to businesses that generate or handle hazardous waste, given how detailed (and costly) that testing panel is - covering leachate, toxicity, corrosivity, and more. Mining and Cement Sector Environmental Compliance Packages: Creating ready-made compliance packages for Meghalaya's mining and cement companies, since these industries typically need frequent testing and can benefit from bundled cost planning and support. Research Institution Partnership Facilitation: Helping businesses that fund or work with academic institutions properly set up their sample submissions so they correctly receive the 50% student/research discount. Multi-State Environmental Fee Monitoring Service: For businesses operating in more than one state, offering a single service that keeps track of fee changes announced by different State Pollution Control Boards across India, so nothing is missed.
Subject
What Will Be the Impact of the New BIS Standard Amendments on Manufacturers and Importers?Summary: The Bureau of Indian Standards (BIS) has notified amendments to six Indian Standards under Sub-rule (1) of Rule 15 of the Bureau of Indian Standards Rules, 2018. The notification establishes amendments to standards covering petroleum testing methods, automotive diesel fuel, polymer modified bitumen (PMB), rubber modified bitumen (RMB) and incense sticks (agarbatti). All six amendments were established on 22 June 2026. BIS has also provided a transition period until 21 December 2026, during which the existing versions of the notified standards will continue to remain in force. This allows manufacturers, testing laboratories, quality control agencies and other stakeholders sufficient time to adopt the amended standards before the earlier versions cease to be applicable. Implementation Dates and Key Deadlines Particulars Details Issuing Authority Bureau of Indian Standards (BIS) Legal Provision Sub-rule (1) of Rule 15 of the Bureau of Indian Standards Rules, 2018 Amendment Month June 2026 Date of Establishment 22 June 2026 Transition Period Up to 21 December 2026 Applicability Six Indian Standards notified by BIS Why Has BIS Issued These Amendments? The Bureau of Indian Standards periodically reviews Indian Standards to keep them aligned with evolving industry requirements, testing methodologies, technological developments, and quality benchmarks. Whenever necessary, BIS establishes amendments to existing standards so that products continue to meet current regulatory and technical expectations. The latest notification updates six Indian Standards covering multiple sectors, including petroleum products, automotive fuels, road construction materials, and consumer products. Although the Gazette primarily notifies the establishment of these amendments and the applicable transition period, businesses covered under these standards should review the amended versions and evaluate their products, testing methods, and quality management systems before the transition period expires. Indian Standards Covered Under the Notification The following Indian Standards have been amended by the Bureau of Indian Standards through the latest notification. S. No. No., Year & Title of the Indian Standard No. and Month/Year of the Amendment Date of Establishment of the Amendment Date till which the standard without the amendment as mentioned in column 3 shall remain in force 1 IS 1448 [P: 23]: 2004 ISO 3837: 1993 Methods of Test for Petroleum and Its Products [P: 23] Liquid Petroleum Products-Determination of Hydrocarbon Types- Fluorescent Indicator Adsorption Method (Fourth Revision) Amendment No. 2 June 2026 22 June 2026 21 December 2026 2 IS 1448 (Part 29): 2021 ISO 6246: 2017 Methods of Test for Petroleum and its Products Part 29 Petroleum Products- Gum Content of Fuels- Jet Evaporation Method (Fourth Revision) Amendment No. 1 June 2026 22 June 2026 21 December 2026 3 IS 1460: 2025 Automotive Diesel Fuel- Specification (Seventh Revision) Amendment No. 2 June 2026 22 June 2026 21 December 2026 4 IS 15462: 2019 Polymer Modified Bitumen ( PMB )- Specification (First Revision) Amendment No. 2 June 2026 22 June 2026 21 December 2026 5 IS 17079: 2019 Rubber Modified Bitumen ( RMB )- Specification Amendment No. 2 June 2026 22 June 2026 21 December 2026 6 IS 19412: 2025 Incense Sticks (Agarbatti)- Specification Amendment No. 1 June 2026 22 June 2026 21 December 2026 Why Has BIS Issued These Amendments? The Bureau of Indian Standards (BIS) periodically amends Indian Standards to keep them relevant to current industrial practices, technological developments, and quality requirements. As products, manufacturing techniques, and testing procedures evolve, existing standards may require updates to ensure they continue to provide reliable benchmarks for quality, performance, and safety. The latest notification establishes amendments to six Indian Standards covering petroleum testing methods, automotive diesel fuel, polymer-modified bitumen (PMB), rubber-modified bitumen (RMB), and incense sticks (agarbatti). These standards are used across multiple industries for product manufacturing, quality control, and conformity assessment. The notification also provides a six-month transition period allowing businesses to adopt the amended standards while continuing to use the existing versions until the specified deadline. This approach helps manufacturers, testing laboratories and certification bodies implement the revised requirements in a phased manner without any disturbance to ongoing production or testing activities. Although the Gazette notification does not specify the technical changes introduced through each amendment, it formally establishes their applicability and notifies the period during which the previous versions of the standards will continue to remain in force. What Does the Latest BIS Notification Cover? The notification establishes amendments to six Indian Standards that relate to different sectors of manufacturing and product testing. Petroleum Testing Standards BIS has notified amendments to two Indian Standards that prescribe methods for testing petroleum products. These standards relate to the determination of hydrocarbon types in liquid petroleum products and the determination of gum content in fuels using the jet evaporation method. These testing methods are commonly used by petroleum laboratories, refineries, and quality control facilities. Automotive Diesel Fuel Specification The notification also establishes Amendment No. 2 to IS 1460:2025, which specifies requirements for automotive diesel fuel. The standard serves as one of the primary quality specifications used by petroleum companies and fuel manufacturers for diesel supplied in the Indian market. Polymer Modified Bitumen (PMB) Another amendment has been notified for IS 15462:2019, which specifies requirements for Polymer Modified Bitumen (PMB). PMB is widely used in highway construction, expressways, airports, bridges, and other infrastructure projects where improved pavement performance is required. Rubber Modified Bitumen (RMB) The notification further establishes Amendment No. 2 to IS 17079:2019, covering Rubber Modified Bitumen (RMB). This standard applies to bitumen modified with rubber to enhance flexibility, durability and resistance to pavement distress in road construction projects. Incense Sticks (Agarbatti) BIS has also notified Amendment No. 1 to IS 19412:2025, which specifies requirements for incense sticks (agarbatti). The standard supports quality standardisation for manufacturers producing agarbatti for the domestic and international markets. Impact on Indian Businesses The amendments are relevant for businesses that manufacture, test, certify, or supply products covered under the notified Indian Standards. During the transition period, affected organisations should review the amended standards and plan their compliance activities before 21 December 2026. Petroleum and Fuel Industry: Refineries, fuel manufacturers, and petroleum testing laboratories should review the amended standards relating to petroleum testing methods and automotive diesel fuel specifications. Bitumen Industry: Manufacturers of Polymer Modified Bitumen (PMB) and Rubber Modified Bitumen (RMB) should assess the amendments and determine whether any changes to their quality or testing practices are required. Agarbatti Manufacturers: Manufacturers producing incense sticks as per IS 19412:2025 should review the amended standard and understand its applicability to their products. Testing Laboratories: Laboratories carrying out testing under the notified standards should prepare to implement the amended versions before the transition period ends. How Businesses Will Achieve Compliance Businesses should use the transition period to align their products and quality systems with the amended Indian Standards. 1. Identify the Applicable Standard Determine whether any of the six amended Indian Standards apply to your products or testing activities. 2. Review the Amended Standard Obtain the latest version of the applicable standard and understand the revised requirements. 3. Assess Existing Practices Compare current manufacturing, testing and quality control procedures with the amended standard. 4. Update Internal Documentation Revise technical documents, SOPs, quality manuals, and testing procedures wherever necessary. 5. Train Relevant Teams Ensure production, quality, and laboratory personnel are aware of the amended requirements. 6. Complete Compliance Before the Deadline Implement the necessary changes before 21 December 2026, when the previous versions of the standards cease to remain in force. Benefits for Businesses after Implementation Implementing the amended Indian Standards can help businesses maintain regulatory compliance while strengthening product quality and standardisation. Benefit Details Continued Compliance Helps businesses align with the latest BIS requirements within the prescribed timeline. Improved Product Quality Encourages adherence to updated Indian Standards for manufacturing and testing. Better Quality Control Supports consistent testing and inspection practices across products. Market Credibility Demonstrates compliance with nationally recognised quality standards. Smooth Transition The six-month transition period allows businesses to implement the amendments in a phased manner. Regulatory Readiness Enables organisations to prepare for compliance before the previous standards cease to remain in force. Is This the Right Decision or an Additional Compliance Burden? The notification balances regulatory requirements with a practical transition period, helping businesses adapt without immediate disruption. Why It Is the Right Decision Periodic amendments help keep Indian Standards aligned with evolving industry practices, testing methods, and quality requirements. The notification covers standards used across key industries such as petroleum, automotive diesel, bitumen, and agarbatti manufacturing, supporting uniform quality practices. The six-month transition period (22 June 2026 to 21 December 2026) gives businesses adequate time to understand the amendments and prepare for compliance. Allowing the previous versions of the standards to remain valid during the transition period helps businesses avoid immediate operational disruptions. Regular updates strengthen India's quality infrastructure and promote greater consistency in manufacturing and product testing. Where It May Create a Compliance Burden Businesses must review the amended standards and assess whether changes are required in their manufacturing, testing, or documentation practices. Small and medium-sized enterprises (SMEs) may require additional technical and regulatory support to complete the transition. Testing laboratories may need to update internal procedures and ensure their testing practices align with the amended standards. Businesses dealing with multiple BIS-regulated products may have to review several standards simultaneously within the transition period. Overall, the notification represents a balanced regulatory update rather than an unnecessary compliance burden. By providing a structured transition period, BIS has given businesses the flexibility to plan and implement the amended standards in a phased and practical manner. How This Improves Product Quality and Standardisation The amendments notified by BIS contribute to maintaining an effective and up-to-date standardisation framework across the industries covered by the notification. Regular revisions help ensure that Indian Standards continue to support reliable manufacturing, product evaluation and quality assurance practices. Area How It Helps Product Quality Encourages manufacturers to align products with the latest Indian Standards. Standardisation Promotes consistency in manufacturing and testing practices across industries. Testing Practices Supports the adoption of updated testing procedures wherever applicable. Regulatory Compliance Helps businesses remain aligned with current BIS requirements. Consumer Confidence Reinforces trust in products manufactured in accordance with recognised Indian Standards. Industrial Competitiveness Encourages businesses to maintain quality benchmarks that support market acceptance and long-term growth. As industries continue to evolve, periodic amendments also help ensure that Indian Standards remain relevant to current technologies, manufacturing processes, and quality expectations. This enables businesses to adopt recognised best practices while maintaining consistency across production and testing activities. Key Considerations for Businesses during the Transition Period The transition period provides businesses with an opportunity to evaluate the impact of the amended standards before they become fully applicable. Rather than waiting until the deadline, organisations should begin reviewing the relevant amendments and assess whether any operational or documentation changes are required. Businesses should particularly focus on: Identifying whether the amended standards apply to their products or testing activities. Reviewing technical documents and quality manuals. Evaluating existing testing methods against the amended standards. Updating internal procedures wherever required. Training quality assurance and laboratory personnel on the revised requirements. Planning compliance activities well before 21 December 2026. Taking these steps early can help organisations complete the transition efficiently while reducing the risk of last-minute compliance challenges. Corpseed Offering: Helping Businesses Prepare for the Latest BIS Amendments The latest BIS notification provides businesses with a six-month transition period to prepare for compliance with the amended Indian Standards. Corpseed offers end-to-end regulatory support to help manufacturers, importers, testing laboratories, and BIS licence holders understand the amendments and plan a smooth transition. Applicability Assessment Assess whether the notified amendments apply to your products, manufacturing operations, or testing activities and identify the relevant Indian Standards for compliance. BIS Compliance Gap Assessment Review existing manufacturing practices, quality management systems and technical documentation against the applicable amended standards to identify potential compliance gaps. Transition Planning Assist businesses in developing a structured compliance roadmap during the transition period, ensuring timely implementation before 21 December 2026. Documentation Review and Compliance Support Support the review and updating of technical documents, quality manuals, Standard Operating Procedures (SOPs), product specifications, and other compliance records wherever required. BIS Certification Advisory Guide BIS certification and licence-related obligations that may arise due to the implementation of the amended Indian Standards. Testing and Laboratory Coordination Assist businesses in coordinating with recognised testing laboratories, understanding applicable testing requirements, and preparing the necessary documentation for compliance activities. Regulatory Monitoring and Ongoing Advisory Help businesses stay informed about future BIS notifications, amendments, and regulatory developments affecting their products and industry. Compliance Training and Awareness Conduct awareness sessions for quality teams, production personnel, and compliance professionals to help them understand the regulatory implications of newly notified BIS amendments and prepare for implementation.
Subject
What Will Be the Impact of the Fertiliser (Control) Seventh Amendment Order, 2026 on Organic Manure Manufacturers and the Biogas Industry?Summary: The Central Government has notified the Fertiliser (Inorganic, Organic or Mixed) (Control) Seventh Amendment Order, 2026, introducing key changes to the Fertiliser (Control) Order, 1985. The amendment recognises Bio Gas plants alongside Compressed Bio Gas (CBG) plants under various provisions of the FCO and exempts manufacturers of Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM) from obtaining an authorisation letter for the next ten years. The changes are expected to boost organic fertiliser production, encourage the productive use of biogas by-products and simplify compliance for manufacturers. Here's a look at how the amendment could impact businesses, Bio Gas plant operators, farmers and India's sustainable agriculture sector. About the Fertiliser (Control) Seventh Amendment Order, 2026 The Fertiliser (Control) Order, 1985 regulates the manufacture, sale, distribution, quality standards and movement of fertilisers across India. Over the years, the Government has amended the Order to promote balanced nutrient management, improve fertiliser quality and encourage sustainable agricultural practices. The Seventh Amendment Order, 2026 focuses on strengthening the organic fertiliser ecosystem by recognising biogas plants as eligible production facilities under various provisions of the FCO, alongside the already recognised compressed biogas plants . The amendment also removes one of the major regulatory hurdles faced by manufacturers of Fermented Organic Manure and Liquid Fermented Organic Manure by providing a ten-year exemption from obtaining an authorisation letter under Clause 8(3). These reforms are expected to promote investments in organic fertiliser production while making better use of organic waste generated through biogas plants. Key Amendments Introduced Under the Seventh Amendment Order The Government has introduced four important changes through the amendment. 1. Bio Gas Plants Now Recognised Under the Fertiliser (Control) Order The amendment inserts the words "and Bio Gas plants" in relevant definitions under Clause 2 of the Fertiliser (Control) Order. Earlier, the provisions mainly recognised Compressed Bio Gas (CBG) plants. After the amendment, ordinary Bio Gas plants are also covered under the same framework. This allows a larger number of biogas facilities to participate in organic fertiliser production under the FCO. 2. Ten-Year Exemption from Authorisation Letter One of the most significant reforms is the substitution of the Seventh Proviso under Clause 8(3). Under the new provision: Manufacturers of Fermented Organic Manure (FOM) Manufacturers of Liquid Fermented Organic Manure (LFOM) Are not required to obtain an authorisation letter under Clause 8(3) for a period of ten years from the date of publication of the amendment. This exemption significantly reduces regulatory procedures for eligible manufacturers. 3. Changes Made in Schedule VIII The Government has also updated the heading of Schedule VIII. Earlier, it referred only to the Organic Carbon Enhancer from Compressed Bio Gas Plants. After the amendment, it now includes Bio Gas plants as well. This means organic carbon enhancers produced by both Compressed Bio Gas (CBG) plants and Bio Gas plants are now recognised under the Fertiliser (Control) Order. 4. Immediate Implementation The amendment became effective immediately upon its publication in the Official Gazette. Manufacturers, distributors, and regulatory authorities are therefore required to follow the revised provisions without any transition period. Why Has the Government Introduced This Amendment? The Seventh Amendment Order, 2026 has been introduced to support sustainable agriculture, encourage the production of organic fertilisers and promote the efficient use of resources generated by biogas plants. It also aligns with the Government's efforts to strengthen renewable energy, improve waste management and reduce unnecessary compliance for manufacturers. Promote Organic Fertiliser Production The amendment allows more BioGas plants to produce recognised organic fertilisers. This can increase the availability of organic manure and support sustainable farming. Encourage Better Use of Biogas By-products Nutrient-rich slurry from Bio Gas plants can now be used to produce organic fertilisers instead of being treated as waste. This promotes better resource utilisation and reduces environmental waste. Reduce Compliance Burden The ten-year exemption from obtaining an authorisation letter reduces paperwork and compliance costs. It also encourages businesses to invest in organic fertiliser production. Support Sustainable Agriculture The amendment promotes the conversion of organic waste into valuable fertilisers. This improves soil health, and supports India's circular economy and sustainable farming goals. How the Amendment Will Affect Businesses and Compliance Requirements The Amendment is expected to simplify compliance for organic fertiliser manufacturers while creating new opportunities for biogas plant operators. At the same time, businesses must ensure that they continue to comply with the quality standards prescribed under the Fertiliser (Control) Order, 1985. The amendment is not merely a relaxation of regulatory requirements. It also expands the scope of recognised production facilities and strengthens the supply chain for organic fertilisers. Immediate Compliance Changes The amendment has come into force with immediate effect. Businesses engaged in manufacturing or supplying organic fertilisers should review their operations in line with the revised provisions. Manufacturers should: Verify whether their production facilities now qualify as recognised Biogas plants under the amended Order. Review internal compliance procedures in light of the ten-year exemption from obtaining an authorisation letter. Continue maintaining quality standards, testing requirements and labelling obligations prescribed under the Fertiliser (Control) Order. Update product documentation wherever references to Compressed Bio Gas plants need revision. Although the authorisation requirement has been relaxed, all other statutory obligations under the FCO continue to apply. Compliance Relief for Organic Manure Manufacturers The biggest regulatory benefit is available to manufacturers producing: Fermented Organic Manure (FOM) Liquid Fermented Organic Manure (LFOM) For the next ten years, these manufacturers are no longer required to obtain an authorisation letter under Clause 8(3). This reduces: Administrative paperwork Approval timelines Compliance costs Operational delays Businesses can now focus more on expanding production instead of managing repeated regulatory approvals. New Opportunities for Bio Gas Plants One of the most significant changes is the formal inclusion of biogas plants alongside Compressed Biogas plants. Earlier, several Biogas plants had limited recognition under the Fertiliser (Control) framework. Following the amendment, these facilities can participate more actively in manufacturing recognised organic fertiliser products. This creates opportunities to: Commercialise biogas slurry Produce certified organic carbon enhancers Enter organised fertiliser markets Improve overall project profitability For many operators, fertiliser production may become an additional revenue stream alongside renewable energy generation. Continued Quality Compliance The exemption provided under the amendment does not dilute product quality requirements. Manufacturers must continue to comply with prescribed standards relating to: Product composition Organic carbon content Nutrient specifications Packaging requirements Labelling norms Storage conditions Inspection and quality testing Who Will Benefit from the Seventh Amendment Order? The amendment is expected to generate benefits across multiple sectors connected with agriculture, renewable energy and organic fertiliser production. Organic Fertiliser Manufacturers Manufacturers of Fermented Organic Manure and Liquid Fermented Organic Manure are among the biggest beneficiaries. The ten-year exemption from obtaining an authorisation letter provides long-term regulatory certainty. Key benefits include: Lower compliance costs Faster business expansion Reduced documentation Improved ease of doing business Better investment confidence Smaller manufacturers may particularly benefit because compliance expenses often represent a larger share of their operating costs. Bio Gas Plant Operators Bio Gas plants now receive formal recognition similar to Compressed Bio Gas plants under various provisions of the Fertiliser (Control) Order. This expands commercial opportunities by allowing operators to utilise organic residues more effectively. Benefits include: Additional income through fertiliser production Better utilisation of digestate and slurry Improved project economics Increased investor confidence Stronger integration with agricultural markets Farmers Farmers may benefit from greater availability of organic fertilisers across the country. As production increases, they may gain access to: Better quality organic manure Improved soil health Enhanced microbial activity Balanced nutrient management Sustainable farming inputs The amendment supports the Government's long-term objective of promoting natural and organic farming practices. Renewable Energy Sector The amendment indirectly strengthens India's renewable energy ecosystem. Biogas projects become more financially attractive when operators can generate revenue from both: Renewable energy production Organic fertiliser manufacturing This dual-income model may encourage additional investments in biogas infrastructure. Agricultural Supply Chain Distributors, wholesalers and retailers dealing in organic fertilisers may also benefit from: Increased product availability Greater product diversity Expanded market participation Improved supply stability The amendment may help strengthen India's domestic organic fertiliser market over the coming years. Who May Face Operational Challenges? Although the amendment is largely beneficial, some stakeholders may need to adapt to the new changes. Existing authorised manufacturers may not receive any direct benefit from the ten-year exemption, as they have already completed the authorisation process. Chemical fertiliser manufacturers could face increased competition as the availability and adoption of organic fertilisers grow. Regulatory authorities will need to update implementation procedures while continuing to ensure compliance with quality standards. New businesses entering the sector must still maintain product quality and build reliable production and distribution systems despite the simplified compliance requirements. Impact on India's Organic Fertiliser Industry The amendment is expected to accelerate the growth of India's organic fertiliser sector. Greater participation by Bio Gas plants could increase domestic production capacity while improving the utilisation of agricultural and biodegradable waste. The policy also supports better integration between renewable energy generation and sustainable agriculture. Over time, this may strengthen domestic manufacturing, encourage technological innovation and improve the availability of environmentally friendly fertiliser products across rural and agricultural markets. Impact on India's Economy The Seventh Amendment Order, 2026, is expected to support India's organic fertiliser and renewable energy sectors while encouraging better utilisation of organic waste. Positive Impact The amendment is likely to deliver several long-term benefits: Boost to Organic Fertiliser Production: Recognising Biogas plants under the Fertiliser (Control) Order can increase the production and availability of organic fertilisers across the country. Support for Sustainable Agriculture: Greater use of organic manure can improve soil health, reduce dependence on chemical fertilisers and promote environmentally friendly farming practices. Growth of the Biogas Sector: Biogas plant operators can generate additional revenue through the sale of organic fertiliser products, making such projects more financially viable. Better Waste Management: Agricultural and biodegradable waste can be converted into useful fertiliser products instead of being discarded, supporting resource efficiency and the circular economy. Possible Challenges While the amendment offers several benefits, certain challenges may arise during implementation. Manufacturers and regulators will need time to adapt to the revised provisions. Increased production of organic fertilisers may gradually intensify competition within the fertiliser industry. Businesses must continue to maintain quality standards despite the relaxation of certain regulatory requirements. Is This the Right Decision? Based on the notified amendments, the decision appears to be a positive step towards promoting sustainable agriculture and simplifying compliance for organic fertiliser manufacturers. Why It Is a Positive Decision It expands the scope of recognised biogas plants under the Fertiliser (Control) Order. It reduces unnecessary regulatory burden by providing a ten-year exemption from obtaining an authorisation letter for eligible manufacturers. It encourages the productive use of biogas by-products for manufacturing organic fertilisers. It supports Government initiatives relating to renewable energy, waste management and the circular economy. Points That Need Attention The success of the amendment will depend on its effective implementation. Product quality and safety standards must continue to be strictly monitored. Regulatory authorities should ensure that the exemption does not compromise compliance with prescribed fertiliser specifications. Awareness among manufacturers and Biogas plant operators will be important for the successful adoption of the revised provisions. Overall, the amendment is expected to strengthen India's organic fertiliser ecosystem while making compliance easier for eligible manufacturers. How This Amendment Improves Transparency, Sustainability and Industry Growth The amendment not only simplifies regulatory requirements but also supports the long-term development of India's organic fertiliser sector. The inclusion of biogas plants creates a more inclusive regulatory framework by recognising additional production facilities. Reduced compliance requirements can encourage more manufacturers to enter the organic fertiliser market. Better utilisation of biogas slurry promotes sustainable waste management and supports circular economy initiatives. Increased production of organic fertilisers can improve supply, encourage innovation and strengthen India's sustainable agriculture ecosystem. The amendment also aligns with the Government's objective of promoting renewable energy and environmentally responsible farming practices. How Can Corpseed Help Businesses? The Fertiliser (Control) Seventh Amendment Order, 2026 introduces important regulatory changes for manufacturers of organic fertilisers and Bio Gas plant operators. Understanding the revised provisions and ensuring compliance can be challenging for businesses. Corpseed can help organisations navigate these changes with end-to-end regulatory and technical support. FCO Compliance Advisory Help businesses understand the amended Fertiliser (Control) Order and identify the compliance requirements applicable to their operations. Organic Fertiliser Registration & Approval Support Assist manufacturers in obtaining approvals for organic fertiliser products and ensuring they meet the quality standards prescribed under the FCO. Bio Gas Plant Regulatory Assistance Support biogas plant operators in leveraging the benefits of the amended Order and commercialising products such as Fermented Organic Manure and Liquid Fermented Organic Manure. Documentation and Technical Support Prepare technical documents, product specifications, labels and other records required under the Fertiliser (Control) Order. Quality Compliance Guidance Help manufacturers comply with testing, packaging, labelling and quality requirements to avoid regulatory issues. Project Advisory for New Businesses Provide end-to-end consulting for businesses planning to establish biogas plants or organic fertiliser manufacturing units, including regulatory approvals and project planning. Ongoing Regulatory Updates and Compliance Support Keep businesses informed of changes in fertiliser regulations and provide ongoing compliance support to ensure smooth operations.
Subject
What Will Be the Impact of the New Customs Duty Exemption for Temporary Animal Imports Under India-UK CETA?Summary: The Central Government has introduced a customs duty exemption for the temporary import of specified animals from the United Kingdom under the India-UK Comprehensive Economic and Trade Agreement (CETA). The exemption applies to animals brought into India for participation in eligible events such as shows, exhibitions, competitions, demonstrations, entertainment programmes, public functions involving working animals like police and sniffer dogs, and guide dog activities. Under the new framework, eligible temporary imports are exempt from Basic Customs Duty and Integrated GST (IGST), provided the prescribed customs conditions are fulfilled and the animals are re-exported within the specified period. Importers must also comply with documentation, identification and security requirements laid down by the customs authorities to avail of the exemption. The initiative aims to facilitate temporary cross-border movement of animals for legitimate purposes while maintaining customs oversight and preventing misuse of the exemption. By reducing the tax burden on temporary imports, the government seeks to support international participation in events organised under the India-UK CETA without compromising regulatory compliance. The exemption will come into effect from 15 July, 2026. Implementation Date and Key Highlights Particular Details Effective Date 15 July 2026 Effective Date India-UK Comprehensive Economic and Trade Agreement (CETA) Goods Covered Specified animals imported temporarily for eligible events Customs Duty Complete exemption from Basic Customs Duty IGST Full exemption from Integrated GST on eligible temporary imports Eligible Activities Shows, exhibitions, contests, competitions, demonstrations, entertainment programmes, public functions, and guide dog activities Major Condition Animals must be re-exported within the prescribed period unless customs duties are paid for home consumption. Why Has the Government Introduced This Exemption? The customs duty exemption has been introduced to facilitate the temporary movement of specified animals between the United Kingdom and India under the India-UK Comprehensive Economic and Trade Agreement (CETA). It aims to reduce the financial burden associated with temporary imports while ensuring that customs authorities continue to regulate such imports through prescribed conditions and mandatory re-export requirements. The exemption also supports greater participation in international events, demonstrations, competitions and public service activities without requiring importers to bear customs duties for animals that are not intended to remain in India permanently. At the same time, safeguards such as bonds, declarations, and identification procedures help prevent misuse of the exemption and protect government revenue. Which Animals Are Eligible for the Exemption? The exemption is available only for animals imported from the United Kingdom for temporary participation in specific activities covered under the India-UK CETA. It is not a general exemption applicable to all live animal imports. The notification covers animals imported for: Shows Exhibitions Contests Competitions Demonstrations Entertainment programmes Exercise of public functions, such as police dogs and sniffer dogs Guide dog activities Animals imported for commercial sale, breeding, permanent ownership or any purpose outside the scope of the eligible activities cannot claim this exemption and will remain subject to the applicable customs laws and duties. What Are the Key Conditions to Avail the Exemption? The exemption is conditional and can only be claimed if the importer complies with the requirements prescribed by the customs authorities. Some of the key conditions include: Submission of the prescribed declaration at the time of filing the Bill of Entry. Execution of a bond equal to the value of the imported animals. Furnishing a bank guarantee or cash deposit equal to 110% of the applicable customs duty, wherever required. Ensuring that the imported animals remain identifiable throughout their stay in India. Not removing the animals from the event venue without prior permission from the proper customs officer. Re-exporting the animals within the prescribed period or paying the applicable customs duties if they are retained in India for home consumption. These conditions ensure that the exemption is used only for genuine temporary imports and that customs authorities can effectively monitor compliance. Who Can Benefit from This Customs Duty Exemption? The exemption is expected to benefit a wide range of stakeholders involved in organising or participating in international events involving animals. These include: Event organisers hosting international exhibitions and competitions. Animal trainers and handlers participating in demonstrations. Organisations conducting public awareness programmes involving trained animals. Law enforcement agencies bringing police or sniffer dogs for joint exercises or specialised programmes. Institutions facilitating guide dog demonstrations and accessibility initiatives. Government departments and public authorities participating in eligible events. International organisations covered under the prescribed conditions of the notification. For these stakeholders, the exemption can significantly reduce the cost of temporary imports while simplifying participation in cross-border events under the India-UK CETA. What Documents Are Required to Claim the Exemption? To avail of the customs duty exemption, importers must submit the prescribed documents to the customs authorities at the time of import. These documents help Customs verify the purpose of the import, establish the importer's eligibility and ensure that the animals are being brought into India only for the approved temporary event under the India–UK CETA. The required documents include: Bill of Entry for the imported animals. Declaration in the prescribed format stating that the animals are intended for display or use at the specified event. Import Export Code (IEC) details of the importer. Details of the event, including its venue, purpose, and duration. Bond and, where applicable, the prescribed bank guarantee or cash deposit. Any additional information, supporting documents, or identification details required by the Deputy Commissioner or Assistant Commissioner of Customs. What Is the Bond and Bank Guarantee Requirement? The exemption from customs duty and IGST does not eliminate the requirement to provide financial security. Before claiming the exemption, importers must fulfil the security requirements prescribed under the notification to ensure compliance with the temporary import conditions. The importer is required to: Execute a bond equal to the value of the imported animals. Furnish a bank guarantee or cash deposit equal to 110% of the customs duty that would otherwise be payable. Note that this requirement does not apply to imports made by the Central Government, State Governments, Union Territory Administrations, diplomatic missions in India, or notified international organisations. The bond serves as a legal undertaking that the importer will comply with all applicable conditions, including timely re-export of the animals while the bank guarantee, or cash deposit provides financial security in case of non-compliance. What Are the Re-export Requirements? The exemption is available only for temporary imports. Once the approved event is completed, the imported animals are expected to be re-exported unless the importer chooses to clear them for home consumption after complying with the applicable customs requirements. To remain eligible for the exemption, importers must: Ensure that the imported animals remain capable of identification at the time of re-export. Follow the identification procedure specified by the customs authorities. Obtain prior permission before removing the animals from the event venue. Re-export the animals within six months from the date of customs clearance. Apply for an extension, where permitted, if additional time is required for the temporary stay. Pay the applicable customs duties and interest if the animals are retained in India for home consumption instead of being re-exported. Step-by-Step Compliance Process for Importers Importers intending to claim the exemption should complete the following compliance process before, during, and after the temporary import of the animals: Step 1: Confirm that the animals are being imported for an eligible event covered under the India-UK CETA. Step 2: Prepare the prescribed declaration, Bill of Entry, and other supporting documents required for customs clearance. Step 3: Execute the required bond and furnish the prescribed bank guarantee or cash deposit, wherever applicable. Step 4: Complete customs clearance and comply with any identification procedures specified by the proper customs officer. Step 5: Ensure that the animals are used only for the declared purpose and obtain prior approval before removing them from the event venue. Step 6: Re-export the animals within the prescribed period or, if they are to remain in India, complete the customs formalities for home consumption by paying the applicable duties and interest. How Does the Exemption Benefit Importers and Event Organisers? The exemption is expected to reduce both the financial and procedural burden associated with the temporary import of animals for international events. Earlier, importers had to account for customs duties even when the animals were brought into India only for a short duration and were intended to be re-exported after the event. Some of the key benefits include: Elimination of Basic Customs Duty on eligible temporary imports. Exemption from Integrated GST (IGST), reducing the overall cost of participation. Easier participation in international exhibitions, demonstrations, and competitions. Greater certainty for organisers planning cross-border events involving trained or working animals. Better support for collaborative programmes between Indian and UK organisations under the India-UK CETA. What Happens If the Conditions Are Not Fulfilled? The exemption is available only when all prescribed conditions are complied with. Failure to satisfy these requirements may result in the importer losing the benefit of the exemption. Situations that may affect eligibility include: Failure to submit the prescribed declaration. Non-execution of the required bond or security. Removal of the animals from the event venue without the necessary customs approval. Failure to re-export the animals within the permitted period. Inability to establish the identity of the imported animals at the time of re-export. Where the importer intends to retain the animals in India instead of re-exporting them, the animals may be cleared for home consumption after payment of the applicable customs duties and interest in accordance with the applicable law. What Is the Role of Customs Authorities? The customs authorities play an important role in administering the exemption and ensuring that it is used only for genuine temporary imports. Their responsibilities include: Examining the declaration submitted by the importer. Verifying the purpose of the temporary import. Accepting the bond and security, wherever applicable. Prescribing procedures for the identification of the imported animals. Granting permission for the movement of the animals from the event venue, where required. Monitoring compliance with the re-export conditions. Considering applications for extension of the re-export period in eligible cases. These responsibilities help maintain customs control while allowing eligible imports to benefit from the exemption. What Does This Mean for India-UK Trade Relations? The exemption represents another step towards implementing the trade facilitation measures agreed under the India-UK Comprehensive Economic and Trade Agreement (CETA). While its scope is limited to temporary imports of specified animals, it reflects the broader objective of reducing unnecessary trade barriers for activities that support professional collaboration, public services, and international events. By providing a structured framework for temporary imports, the exemption can: Encourage greater participation by UK organisations in events held in India. Support bilateral cooperation involving trained and working animals. Promote smoother movement of eligible imports under the trade agreement. Reduce administrative and financial barriers for temporary cross-border activities. Strengthen confidence in the implementation of commitments made under the India-UK CETA. What Challenges Should Importers Keep in Mind? While the exemption simplifies temporary imports, it also places several compliance responsibilities on importers. Businesses and organisations intending to avail of the benefit should carefully plan their imports to avoid delays or disputes during customs clearance. Some of the key challenges include: Ensuring that the purpose of the import falls within the activities covered under the exemption. Preparing the prescribed declaration and supporting documents before the arrival of the animals. Arranging the required bond and bank guarantee or cash deposit, wherever applicable. Maintaining proper identification of the imported animals throughout their stay in India. Completing the re-export process within the prescribed timeline or applying for an extension where permitted. Coordinating with customs authorities if there is any change in the event schedule or import plan. Proper planning and timely compliance can help importers avoid unnecessary procedural issues and ensure smooth movement of animals under the exemption framework. Is This the Right Decision or an Additional Compliance Burden? The exemption is expected to strike a balance between trade facilitation and regulatory oversight. On one hand, it removes the customs duty burden on eligible temporary imports, making it easier for organisations and participants from the United Kingdom to take part in events held in India. On the other hand, it retains essential safeguards to prevent misuse of the exemption. Why the Decision Is Beneficial Reduces the cost of temporary imports. Promotes participation in international exhibitions, competitions, and demonstrations. Supports the implementation of commitments under the India–UK CETA. Facilitates collaboration involving trained, service, and working animals. Encourages legitimate temporary imports without affecting permanent import regulations. Compliance Responsibilities That Continue Submission of prescribed declarations. Execution of the required bond and financial security. Compliance with identification procedures. Timely re-export of the imported animals or payment of applicable duties where required. Adherence to customs instructions throughout the temporary stay. Overall, the exemption simplifies the import process without removing Customs' authority to monitor and regulate temporary imports. How Can Corpseed Help? Understanding customs notifications and fulfilling the associated compliance requirements can often be time-consuming, particularly for organisations importing animals for international events. Since the exemption is subject to specific conditions relating to documentation, security requirements, temporary import procedures and re-export obligations, even minor compliance gaps can lead to delays or additional costs. Corpseed provides end-to-end advisory and regulatory support to help businesses navigate the customs process efficiently while ensuring compliance with the applicable provisions. Our Services Include: Eligibility Assessment: Evaluating whether the proposed import qualifies for Customs Duty and IGST exemption under the applicable customs notification and the India-UK Comprehensive Economic and Trade Agreement (CETA). Documentation Support: Assisting with the preparation and review of Bills of Entry, declarations, supporting documents, and other customs paperwork required for temporary imports. Customs Compliance Advisory: Guiding fulfilling notification-specific conditions, customs procedures, and other regulatory obligations applicable to the temporary import of animals. Temporary Import Assistance: Supporting importers in complying with identification requirements, bond execution, security requirements, monitoring obligations, and timely re-export procedures. Trade Agreement Advisory: Helping businesses understand and utilise the customs benefits available under international trade agreements, including the India-UK Comprehensive Economic and Trade Agreement (CETA). Regulatory Coordination: Assisting businesses in coordinating with the relevant authorities during customs clearance and throughout the temporary import process to minimise procedural delays. Risk Assessment and Compliance Review: Reviewing the proposed import transaction to identify potential compliance risks and recommending practical measures to address them before customs clearance. End-to-End Regulatory Support: Offering continuous assistance throughout the import, temporary use, and re-export process to help businesses meet all applicable customs and regulatory requirements.
Subject
What Will Be the Impact of the RELIEF Component II Timeline Extension on Indian Exporters?Summary: Indian exporters dealing with shipping disruptions have received some welcome relief. The Directorate General of Foreign Trade ( DGFT ) has extended the eligibility period under Component II of the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme until 30th September 2026 through a recent notification. The decision comes as businesses continue to face delays and higher logistics costs due to the ongoing crisis in West Asia. By extending the timeline, the Government is giving eligible exporters more time to complete qualifying shipments and avail the benefits available under the RELIEF scheme. Apart from this extension, all other provisions of the earlier notification remain unchanged. Why Did the Government Extend the Timeline? The timeline has been extended in view of the continuing logistics disruptions affecting export shipments. The main reasons are: The ongoing West Asia crisis continues to affect international shipping routes and freight movement. Exporters are facing higher logistics costs and longer transit times. The existing eligibility period was ending before many exporters could fully utilize the scheme. Extending the timeline encourages better utilization of RELIEF benefits under the Export Promotion Mission (EPM). The extension strengthens India's export competitiveness during uncertain global trade conditions. Implementation Date The notification comes into effect immediately from its date of publication. Under this amendment: Shipments eligible under Component II can now qualify if they are meant for delivery or transhipment up to 30th September 2026. All other conditions, eligibility requirements, and operational guidelines under Notification No. 65/2025-26 remain unchanged. What Has Changed? The amendment makes only one significant change. Earlier Provision Revised Provision Eligibility period under Component II ended earlier as prescribed in Notification No. 65/2025-26. Eligibility period is extended until 30th September 2026. No other provisions of the RELIEF scheme have been modified. How Different Stakeholders Are Affected The extension directly benefits exporters and logistics stakeholders who continue to face shipping disruptions. Exporters Indian exporters shipping goods through affected international routes get more time to claim benefits under Component II. Businesses that were unable to complete eligible shipments earlier now have a longer window to qualify. Export Houses Large export houses handling multiple international shipments can continue planning exports under the RELIEF framework without immediate concern over expiry of eligibility. MSME Exporters Small and medium exporters often experience greater financial pressure due to rising logistics costs. The updated timeline offers support while global shipment conditions remain unsure. Freight Forwarders and Logistics Companies Logistics service providers handling delivery and transhipment operations can continue assisting eligible exporters under the extended intervention period. Shipping and Supply Chain Businesses Companies involved in export logistics may witness continued shipment activity as exporters make use of the extended eligibility period. Who Gets the Maximum Benefit? The extension is expected to benefit: Exporters shipping through routes affected by the West Asia crisis. MSMEs have limited capacity to absorb higher logistics costs. Manufacturing exporters dependent on timely international deliveries. Businesses using transhipment hubs for global exports. Export-oriented industries operating under long-term international contracts. Compliance Requirements for Exporters Businesses wishing to claim benefits should continue complying with the existing RELIEF conditions. They must: Ensure shipments fall within the revised eligibility period ending 30th September 2026. Maintain complete export and shipping documentation. Meet all eligibility requirements prescribed under Notification No. 65/2025-26. Follow DGFT reporting and documentation requirements. Continue complying with the Foreign Trade Policy 2023. How This Improves Trade Facilitation The extension reflects the Government's effort to maintain continuity in export support without introducing new compliance requirements. Some key advantages include: Greater certainty for exporters planning international shipments. Better utilization of RELIEF assistance. Reduced pressure to complete shipments within shorter timelines. Continued support for businesses affected by global logistics disruptions. Improved resilience of India's export supply chain. Impact on the Indian Economy The extension is expected to support India's export sector in several ways. Export Growth: Additional time enables more exporters to benefit from the intervention and continue international trade. Supply Chain Stability: Businesses receive support despite shipping delays caused by geopolitical developments. MSME Competitiveness: Smaller exporters gain financial relief during periods of increased logistics costs. Foreign Exchange Earnings: Sustained exports contribute to India's foreign exchange reserves. Trade Resilience: The policy strengthens India's ability to manage external supply chain disruptions. Is This the Right Decision or Just a Temporary Relief? The notification primarily extends an existing support measure rather than introducing a new scheme. While it does not permanently solve logistics challenges, it provides timely assistance to exporters affected by extraordinary global conditions. Why It Is the Right Decision Supports exporters facing circumstances beyond their control. Encourages greater utilization of the RELIEF intervention. Maintains continuity of Government assistance without changing existing procedures. Helps exporters fulfil international commitments despite logistics disruptions. Demonstrates the Government's responsive approach to changing global trade conditions. Potential Challenges The extension is temporary and currently applies only until 30th September 2026. Businesses must still satisfy all existing eligibility conditions. Companies not covered under Component II will not receive additional benefits. Global freight disruptions may continue even after the extended timeline expires. Overall, the amendment provides practical relief to exporters by extending access to an already established support mechanism without increasing compliance requirements. Business Opportunities Created The extension of the RELIEF scheme timeline creates opportunities for businesses that support exporters with trade, logistics, and compliance. As more exporters become eligible to avail the scheme, the demand for professional assistance is also likely to increase. Export Consulting Firms: Businesses offering export advisory services can help exporters understand the revised eligibility criteria, assess whether their shipments qualify, and guide them through the application process. Customs and Trade Compliance Consultants: Consultants can assist exporters in maintaining accurate documentation, meeting DGFT requirements, and ensuring compliance with the conditions prescribed under the RELIEF scheme. Freight Forwarders: Logistics providers can support exporters by planning shipments within the extended eligibility period and recommending suitable routes to minimise delays caused by ongoing disruptions. Logistics Technology Companies: Companies offering shipment tracking, freight visibility, digital documentation, and supply chain management solutions may see increased demand as exporters focus on improving operational efficiency. Export Documentation Service Providers: Firms specialising in export documentation can help businesses prepare shipping records, declarations, and other documents required to claim benefits under the RELIEF intervention. MSME Advisory Firms: Advisors working with small and medium exporters can guide them on making effective use of the extended timeline, improving export readiness, and accessing available government support with greater confidence.
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