Law Updates

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Summary: India may continue charging anti-dumping duty on certain Arylides imported from China for another five years. The Directorate General of Trade Remedies (DGTR), in its final findings dated 12 October 2026, has recommended keeping the existing duty rates after examining whether Chinese imports could continue to harm Indian manufacturers. The investigation covers five types of Aceto Acetyl Derivatives of Aromatic or Heterocyclic Compounds, commonly called Arylides. These chemicals are mainly used in pigment manufacturing and related industrial applications. The recommended duty rates range from 24.79% to 44.90% of the CIF value, depending on the producer and the conditions specified in the duty table. The recommendation does not mean a new five-year duty has already been imposed. The Ministry of Finance had earlier extended the existing anti-dumping duty until 13 January 2027 through Notification No. 17/2026-Customs (ADD), dated 10 July 2026. DGTR's latest recommendation concerns a further five-year continuation, which requires a separate Central Government notification. For Indian chemical importers, pigment manufacturers and businesses sourcing raw materials from China, the findings raise several practical questions. Which products are covered? What rate applies to each supplier? Have the relevant HS codes changed? And what should businesses check before importing? The answers depend on both DGTR's findings and the customs notifications currently in force. DGTR Final Findings 2026 at a Glance Particulars Details Issuing authority Directorate General of Trade Remedies Ministry Ministry of Commerce and Industry Document Final Findings Sunset Review Case number AD(SSR) 01/2026 File number 7/04/2026-DGTR Date of final findings 12 October 2026 Gazette publication 13 October 2026 Product 13 October 2026 Common product name Arylides Subject country China PR Original duty notification 60/2021-Customs (ADD), dated 14 October 2021 Existing extension 17/2026-Customs (ADD), dated 10 July 2026 Existing extended validity Up to and including 13 January 2027, unless changed earlier Investigation period 1 October 2024 to 30 September 2025 Recommended duty rates 24.79%, 26.64% and 44.90% Recommended continuation Five years from the relevant Central Government notification Governing law Customs Tariff Act, 1975 Relevant rules Anti-Dumping Rules, 1995 Affected sectors Chemical imports, pigment manufacturing, colourants and related industries The important point is that DGTR has recommended continuing the existing rates, not increasing them. The products and conditions covered by the duty also remain central to deciding whether a particular import attracts it. What Is the Regulatory Framework for Anti-Dumping Duty on Arylides? Anti-dumping duty is imposed to address injury caused by dumped imports. It is not a general tax on everything imported from a particular country. Dumping is assessed by comparing an export price with the normal value determined under the applicable rules. Where the investigation establishes the necessary conditions, anti-dumping duty may be imposed to address the injury caused to domestic industry. Which Laws Govern Anti-Dumping Duty in India? The legal framework mainly comes from the Customs Tariff Act, 1975 and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. For the present investigation, two provisions are especially relevant. Section 9A(5) of the Customs Tariff Act, 1975 This provision deals with the duration of anti-dumping duty. A definitive measure generally expires after five years unless its continuation is supported through the prescribed legal process. Rule 23 of the Anti-Dumping Rules, 1995 Rule 23 provides for reviews of anti-dumping measures. In a sunset review, the authority considers whether ending an existing duty is likely to result in continued or recurring dumping and injury. A sunset review is therefore not the same as imposing anti-dumping duty for the first time. What Is the Role of DGTR and CBIC? DGTR conducts investigations into trade-remedy matters, examines evidence from interested parties and recommends suitable measures to the Central Government. The Ministry of Finance issues the relevant customs notification imposing, amending or continuing anti-dumping duty. Customs authorities then administer the applicable duty during import clearance. For importers, this distinction is important. A DGTR recommendation explains the outcome of the investigation. The legally applicable duty must be determined from the relevant customs notification. Why Was the Sunset Review of Arylides Started? The original anti-dumping investigation concerning Arylides from China began on 21 August 2020. After examining imports and their effect on Indian manufacturers, DGTR issued its final findings on 19 August 2021. The Ministry of Finance subsequently imposed anti-dumping duty through Notification No. 60/2021-Customs (ADD), dated 14 October 2021. As that measure approached the end of its original term, Laxmi Organic Industries Limited requested a sunset review. The company also sought an increase in the existing duty. DGTR initiated the review on 19 March 2026. What Did DGTR Need to Examine? The investigation focused on whether ending the existing duty would make dumping and injury likely to continue or return. To answer this, DGTR considered several matters. 1. Pricing of Chinese imports The authority examined export prices and compared them with the normal values determined under the investigation. 2. Condition of the Indian industry It reviewed production, sales, profitability, inventories, capacity utilisation and other indicators. 3. Import volumes and market trends The investigation considered how imports from China had moved during the injury period and how significant those imports remained in the Indian market. 4. Available capacity in China DGTR looked at whether Chinese producers had spare capacity that could support higher exports if the duty ended. 5. Possible effects on Indian users The authority also examined the available evidence concerning businesses that use Arylides in pigment production and other manufacturing activities. Investigation and Injury Analysis Period Period Dates Period of Investigation 1 October 2024- 30 September 2025 First injury-analysis year 2022-23 Second injury-analysis year 2023-24 Third injury-analysis year 2024-25 Final injury-analysis period Period of Investigation The wider injury period allowed DGTR to compare industry performance over time rather than relying on a single year's results. What Has DGTR Recommended in Its Final Findings? The authority's main recommendation is to continue the existing anti-dumping duty on the covered Arylides for another five years. DGTR reached this position after concluding that dumping continued despite the duty and that removing the measure could expose Indian manufacturers to further injury. 1. Existing Duty Rates Should Continue DGTR recommended retaining the rates imposed under Notification No. 60/2021-Customs (ADD). The recommended rates depend on the producer and the origin and export conditions specified in the duty table. 2. The Recommended Period Is Five Years The authority proposed a further five-year period. Under paragraph 137 of the final findings, that period would run from the date of the notification issued by the Central Government to give effect to the recommendation. The date of DGTR's findings, 12 October 2026, should not be treated as the commencement date of the recommended five-year period. 3. DGTR Did Not Recommend Increasing the Rates The domestic industry had requested continuation and enhancement of the duty. DGTR ultimately recommended maintaining the existing rates. Nantong Acetic Acid Chemical Co., Ltd. had also requested a lower duty based on the injury margin determined during the latest investigation. DGTR did not accept that request. 4. Why Did DGTR Support Continuation? The authority considered several findings together: Chinese exports continued to be made at dumped prices. Imported goods undercut domestic selling prices. The domestic industry continued to face financial losses. Chinese producers had significant unused production capacity. India remained an important export market for the participating producers. Ending the duty could increase the risk of further dumping and injury. These findings formed the basis of the recommendation. The continuation itself, however, still depends on the relevant government notification. Which Arylides Are Covered Under the Investigation? The anti-dumping investigation concerns five specified Arylides varieties. It does not automatically cover every chemical sold commercially as an Arylide. Covered Arylides Products Product name Short form Acetoacetanilide AAA Acetoacet-meta-xylidide AAMX Acetoacet-o-anisidide AAOA Acetoacet-o-toluidide AAOT Acetoacet-o-chloroanilide AAOCA DGTR confirmed that the product scope remains unchanged from the original investigation. Where Are These Chemicals Used? The covered Arylides are primarily used as chemical intermediates in the manufacture of pigments. The findings identify their use in producing different types of yellow pigments. They also refer to applications involving orange and red pigments and the agrochemical sector. Businesses involved in these activities may buy Arylides directly from overseas suppliers or obtain them through Indian chemical traders. Which Products Are Excluded? The final findings expressly exclude all forms of Arylides other than the five covered products. The investigation also discusses several excluded, specialised derivatives, including: Acetoacet-p-anisidide (AAPA). Acetoacet-p-chloroanilamide (AAPCA). Acetoacet-p-chloro-o-anisidide (AAPCOA). Acetoacet-p-toluidide (AAPT). These are examples from the detailed product discussion, not an exhaustive reproduction of every excluded chemical named in the investigation. Why Does Product Identification Matter? The commercial name on an invoice may not provide enough information to determine duty coverage.Before treating an import as covered, the business should compare its exact chemical description with the product under consideration. Relevant technical details may include the product specification, chemical identity and supporting manufacturer information. A product should not be treated as covered solely because it belongs to a related chemical family. Which HS Codes Apply to Arylides Imports from China? The DGTR final findings classify the product under consideration under customs subheading 2924 29. The investigation also refers to imports under the tariff items 2924 29 20, 2924 29 30 and 2924 29 90. However, there is an important difference between the codes discussed in the findings and the amended customs notification. What Changed in April 2026? Notification No. 06/2026-Customs (ADD), dated 30 April 2026, amended several anti-dumping notifications. For Notification No. 60/2021-Customs (ADD), it replaced references to tariff item 2924 29 90 with tariff items 2924 29 91 and 2924 29 99. This amendment came into force on 1 May 2026. HS Code Position for Importers Tariff item Position to understand 2924 29 20 Appears in the DGTR duty table 2924 29 30 Mentioned among codes used for imports examined during the investigation 2924 29 90 Appears in the October DGTR findings but was replaced in the original duty notification by the April 2026 amendment 2924 29 91 Inserted into the amended duty notification in place of 2924 29 90 2924 29 99 Inserted into the amended duty notification in place of 2924 29 90 The October DGTR findings and the April customs amendment should therefore be read together. An importer should check the current tariff classification and the amended, legally operative notification rather than simply copying the codes from the DGTR duty table. DGTR also states that the tariff classification is indicative and does not determine the full scope of the investigation. The product description and the applicable legal notification remain essential when assessing anti-dumping duty. What Are the Recommended Anti-Dumping Duty Rates on Arylides? DGTR recommended continuing the existing producer-specific rates without enhancement. The rates are expressed as percentages of the CIF value of the imported goods. Producer-Specific Duty Table Country of origin Country of export Producer Recommended ADD China PR Any country, including China PR Qingdao Haiwan Specialty Chemicals Co., Ltd. 24.79% China PR Any country, including China PR Nantong Acetic Acid Chemical Co., Ltd. 26.64% China PR Any country, including China PR Producers other than the two specified above 44.90% Country other than China PR China PR Any producer 44.90% Source: DGTR Final Findings, paragraph 137. These are recommended continuation rates, subject to the operative customs notification and applicable amendments. Why Are Different Rates Recommended? The original duty structure distinguishes between named producers and other covered producers. During the review, Nantong and Qingdao Haiwan participated in the investigation and submitted information to DGTR. The authority examined their individual export prices, dumping margins and injury margins using the relevant investigation methodology. It nevertheless decided that continuing the existing producer-specific duty rates was appropriate. Does Every Arylides Import Attract 44.90% Duty? No. The duty depends on the product, producer and the relevant origin and export conditions. Where an importer qualifies for a producer-specific rate, that rate may differ from the rate applicable to other covered producers. Likewise, the investigation's product exclusions must be considered before applying any rate. The duty table should not be read as imposing a uniform 44.90% charge on all chemicals imported from China. What Were the Main Findings on Dumping and Injury? DGTR examined the pricing and financial evidence before deciding whether the anti-dumping duty should continue. Two important measures in the findings are the dumping margin and injury margin. Dumping Margins Determined by DGTR Producer/exporter category Dumping margin Nantong Acetic Acid Chemical Co., Ltd. 10–20% Qingdao Haiwan Specialty Chemicals Co., Ltd. 50–60% All other producers/exporters 80–90% A dumping margin indicates the difference between the normal value and export price determined under the anti-dumping rules. It is not the same as the duty percentage charged at customs. Injury Margins Determined by DGTR Producer/exporter category Injury margin Nantong Acetic Acid Chemical Co., Ltd. 0–10% Qingdao Haiwan Specialty Chemicals Co., Ltd. 30–40% All other producers/exporters 80–90% The injury margin reflects the comparison between the determined non-injurious price and the relevant landed import value. DGTR found positive dumping and injury margins during the review. What Happened to Imports from China? Imports from China remained substantial throughout the period examined. The published import-volume table records the following figures: Period Imports from China 2022–23 3,546 MT 2023–24 3,610 MT 2024–25 4,605 MT Period of Investigation 4,358 MT Imports rose in the earlier years and then declined during the period of investigation compared with 2024–25. Even after this decline, Chinese imports remained above the volume recorded in 2022–23. The findings also report an 18% increase over the injury period. However, this stated percentage does not reconcile directly with the disclosed starting and ending volumes. The numerical inconsistency requires source clarification rather than an assumed correction. Did Chinese Imports Undercut Indian Selling Prices? DGTR examined landed import values against the domestic industry's net sales realisation. The authority found positive price undercutting across all five covered Arylides varieties. The findings also record price depression and price suppression. Price depression means selling prices declined during the period under review. Price suppression concerns selling prices being held below levels that otherwise might have been achievable, including situations in which prices do not reflect relevant cost movements. DGTR found that the domestic industry's selling prices declined faster than its cost of sales during the injury period. The authority considered this an indication of continued pricing pressure from dumped imports. What Was the Condition of the Indian Industry? The investigation identified improvements in certain operating indicators while the anti-dumping duty was in force. These included aspects of production and sales performance. However, the authority also found that the domestic industry faced financial difficulties. The findings refer to: Losses from 2023–24 onwards. Cash losses during the period of investigation. Negative return on investment. Increased inventories. Continued pressure on selling prices. DGTR concluded that better production or sales volumes did not necessarily mean the injury had disappeared. The review was concerned with what could happen if the existing duty ended. Why Did DGTR Find a Risk of Continued Dumping and Injury? The authority considered the possibility that the situation could worsen if the existing measure were withdrawn. Its assessment relied on pricing behaviour, production capacity and export trends. 1. Significant Unused Capacity in China The participating Chinese producers had substantial idle production capacity. DGTR's conclusions state that their unused capacity represented approximately 130–140% of Indian demand for the product under consideration. The authority considered this relevant because the producers could potentially increase exports if the duty ended. Unused capacity alone does not establish that exports will increase. DGTR considered it together with other evidence. 2. India Was an Important Export Market The investigation found that India was the principal export market for the participating Chinese producers. This was relevant to DGTR's assessment of whether they might direct additional sales to India after the duty expired. 3. Third-Country Export Prices Raised Concerns DGTR examined the prices at which the participating producers sold Arylides in markets outside India. The authority found that a substantial share of those exports was priced below the non-injurious price determined for the Indian domestic industry. The comparison did not establish dumping in those other countries. It was considered as part of the assessment of the producers' export-pricing behaviour. 4. Existing Duties Had Not Removed All Injury DGTR found that dumped imports continued even while anti-dumping duty was in force. The domestic industry's financial indicators remained under pressure. Based on the combined evidence, the authority considered continued protection necessary to address the likelihood of further dumping and injury. How Could the Recommended Duty Continuation Affect Indian Businesses? The impact will not be identical for every business. An importer buying covered Arylides directly from China may face different considerations from a manufacturer purchasing them through an Indian supplier. The relevant producer, product type and customs treatment will influence the actual commercial position. Impact on Chemical Importers For importers, the first issue is duty applicability. A business needs to establish whether the product is covered, which producer supplied it and which rate applies under the current customs notification. Where different producer-specific rates are available, the applicable rate can affect landed costs and sourcing decisions. The business may also need to review whether its invoices and import documents contain sufficient information to support the claimed treatment. These are matters where appropriate import compliance services and customs-related professional guidance may be useful. Impact on Pigment Manufacturers Arylides are used as intermediates in pigment manufacturing. Companies importing these chemicals may need to consider the applicable duty when planning raw-material purchases and production costs. Businesses purchasing from domestic traders should also understand whether changes in imported-input costs are being reflected in supplier quotations. The actual effect will depend on the quantity of Arylides used, supply arrangements and the applicable customs treatment. Impact on Domestic Arylides Manufacturers The investigation was initiated at the request of the domestic industry. DGTR's findings support the view that continuing the anti-dumping duty is necessary to counter the likely harmful effects of dumped imports. For domestic manufacturers, the measure is intended to address unfair pricing conditions rather than prohibit legitimate imports. Impact on Chinese Producers and Exporters The recommended rates continue to distinguish between named producers and other covered manufacturers. Correct producer identification therefore remains relevant. Exporters and importers should pay attention to the prescribed invoice conditions and information required under the applicable customs notification. Impact on Chemical Traders and Industrial Buyers Businesses trading in covered Arylides may need to review procurement plans and contractual arrangements. Points worth examining include supplier identity, the validity of quoted prices, expected customs treatment and documentation responsibilities. These are practical commercial considerations. The October findings do not independently impose a new licensing or registration process on chemical traders. What Did DGTR Find About the Impact on Downstream Industries? An anti-dumping duty can affect the industries that use the imported product as an input. DGTR therefore considered whether continuing the duty on Arylides would disproportionately affect manufacturers of pigments and downstream products. What Information Did Downstream Users Provide? DGTR invited importers, consumers and other interested parties to provide information during the investigation. However, no Indian user or importer submitted the prescribed economic-interest questionnaire response. The authority therefore relied on the material available on record, including the domestic industry's estimates. Estimated Cost Impact on Downstream Products The domestic industry submitted an assessment relating to coatings, plastics and ink applications. Downstream application Estimated impact Coatings 0.17% Plastics 0.45% Ink 0.32% These are the estimates examined during the investigation. They should not be treated as actual cost increases experienced by every business in those industries. DGTR also considered a sensitivity assessment in which the assumed Arylides share in pigment costs was doubled. Under that assumption, the estimated impact on downstream products remained below 1%, at approximately 0.35%–0.89%. Did DGTR Expect a Supply Shortage? The authority considered that continuing the duty would not prevent imports or create a shortage of the subject goods. It also examined domestic manufacturing capacity and investments connected with the product. On the available evidence, DGTR concluded that the impact on downstream users would be negligible. Individual businesses should still examine their own sourcing and cost structures rather than treating the investigation estimates as universal figures. What Commercial Invoice Declaration Is Required for Producer-Specific Rates? The DGTR final findings contain a specific proposed documentary condition for applying the individual producer rates. Paragraph 139 requires a valid commercial invoice carrying a declaration identifying the manufacturer of the covered goods. What Details Must the Declaration Contain? The proposed declaration covers the following information: Product and shipment volume: The quantity of covered Arylides sold for export to India. Manufacturer's identity: The name of the manufacturing company. Manufacturer's address: The address of the manufacturer in the People's Republic of China PR. Declaration of correctness: Confirmation that the information supplied is complete and correct. Authorised signatory: The name and official function of the person signing the declaration. Date and signature: A dated declaration signed by an official of the entity issuing the invoice. The declaration should follow the wording prescribed in the applicable legal instrument. What Happens If the Required Invoice Is Missing? Paragraph 140 of the final findings states that, where the specified invoice is not presented, the rate applicable to all other producers will apply. Under DGTR's recommended table, that rate is 44.90%. This is an important part of the recommendation for businesses seeking a lower producer-specific rate. However, the documentary requirements legally applicable to an actual shipment must be checked against the operative customs notification. The October recommendation should not be treated as independently introducing a new enforceable invoice condition. Can Customs Authorities Check the Declaration? Yes. DGTR states that the invoice condition does not prevent customs authorities from carrying out independent verification under applicable customs law. Importers should therefore ensure that manufacturer information is accurate and supported by relevant documentation. How Is Anti-Dumping Duty on Arylides Calculated? The recommended duty is calculated as a percentage of the CIF value of the covered imported goods. CIF stands for Cost, Insurance and Freight. The appropriate customs assessable value and legal valuation provisions must be used for the actual assessment. What Factors Affect the Duty Calculation? 1. Customs assessable value The relevant assessable value forms the base for the percentage-based duty, subject to the applicable valuation requirements. 2. Applicable anti-dumping duty rate The rate depends on the covered goods, producer and origin/export conditions. 3. Applicable exchange rate Paragraph 138 of the findings refers to the government-notified exchange rate under Section 14 of the Customs Act, 1962. The proposed arrangement identifies the date of presentation of the Bill of Entry under Section 46 as the relevant date. 4. Payment currency The recommendation provides for payment of the anti-dumping duty in Indian currency. 5. Other applicable customs duties and taxes Anti-dumping duty should not be confused with basic customs duty, Integrated GST or other charges that may apply. The complete liability must be assessed under the applicable legal provisions. Are Arylides Imports Under Advance Authorisation Eligible for Duty Relief? DGTR's findings refer to imports made under the Advance Authorisation Scheme. Advance Authorisation is a mechanism under India's foreign trade framework through which qualifying inputs may be imported under specified duty-exemption conditions for export production. The authority observed that significant quantities of the covered Arylides had been imported under this scheme without payment of anti-dumping duty. This was relevant to its assessment of the possible impact on export-oriented pigment manufacturers. However, the observation does not establish that every Advance Authorisation holder is automatically exempt. Eligibility depends on the relevant customs exemption notification, the terms of the authorisation and the particular import. Businesses intending to rely on the scheme should examine the applicable exemption conditions before claiming any relief. Relevant DGFT compliance services may help businesses understand the authorisation process where it is applicable. A DGFT restricted-import licence should not be assumed necessary merely because anti-dumping duty applies. When Will the Recommended Five-Year Duty Continuation Take Effect? The latest DGTR findings and the existing customs notification deal with different stages of the regulatory process. The earlier duty had already been extended before DGTR completed the sunset review. Regulatory Timeline Date Development 21 August 2020 Original anti-dumping investigation initiated 19 August 2021 DGTR issued original final findings 14 October 2021 Anti-dumping duty imposed under Notification No. 60/2021-Customs (ADD) 19 March 2026 Sunset review initiated 30 April 2026 Notification No. 06/2026-Customs (ADD) issued, including tariff-item amendments 1 May 2026 April tariff-item amendment became effective 10 July 2026 Existing duty extended under Notification No. 17/2026-Customs (ADD) 12 October 2026 DGTR issued final findings recommending continuation 13 January 2027 Existing extended validity ends, unless changed earlier Further five-year period Depends on the relevant Central Government notification Has the Duty Already Been Extended? The existing duty was extended through 13 January 2027 by the Ministry of Finance in July 2026. That is an operative extension. DGTR's October 2026 recommendation concerns a further five-year period and does not, by itself, give that period legal effect. What Should Importers Follow Now? Importers should refer to the legally operative customs notification, including its amendments and any subsequent changes. At the time of this review, a further Central Government notification implementing the October five-year recommendation was not independently identified. This should be rechecked before publication and whenever the applicable duty is assessed for an actual shipment. What Are the Risks of Incorrect Anti-Dumping Duty Assessment? Incorrectly applying an anti-dumping duty rate can create problems during customs clearance and may affect the business's import costs. Several areas deserve attention. 1. Incorrect Product Classification A covered product may be wrongly classified, or an excluded product may be treated as covered. The commercial name, chemical specifications and current tariff description should be examined together. 2. Applying the Wrong Producer Rate Using a producer-specific rate without establishing the actual manufacturer and the relevant conditions may result in an incorrect assessment. 3. Missing Manufacturer Information Where a prescribed invoice declaration is legally required, missing or inconsistent information may prevent the importer from supporting a claimed individual rate. 4. Using Old Tariff Codes The April 2026 amendment changed certain tariff-item references in the original anti-dumping notification. Importers relying only on earlier classifications may overlook the updated references. 5. Assuming an Exemption Applies Advance Authorisation or another trade authorisation should not be treated as automatic proof of exemption from anti-dumping duty. The applicable legal conditions must be verified. 6. Relying on an Outdated Duty Notification A business may refer to the original 2021 notification without checking later amendments or the existing validity extension. This can lead to incorrect assumptions about the duty's legal status. The specific consequences of incorrect declarations or assessments depend on the applicable customs law and facts. No automatic penalty should be assumed solely from the DGTR findings. What Should Importers and Chemical Manufacturers Do Next? Businesses importing or using covered Arylides should review their existing arrangements against the applicable customs requirements. The following checks may help. Step 1: Identify the Exact Product Start with the chemical being imported. Check whether it is AAA, AAMX, AAOA, AAOT or AAOCA, or whether it falls outside the defined scope. The product description should be supported by reliable specifications and manufacturer information. Step 2: Verify the Current HS Classification Review the tariff classification used for the shipment. Pay attention to the April 2026 changes affecting references to 2924 29 90. The tariff code and product scope should both be checked. Step 3: Confirm the Legally Applicable Duty Examine Notification No. 60/2021-Customs (ADD), its subsequent amendments and any later notification relevant to the shipment. Do not calculate a new five-year period from the DGTR findings alone. Step 4: Check the Producer and Export Route Confirm the actual manufacturer, country of origin and country of export. These details matter because the duty table contains producer-specific and country-specific conditions. Step 5: Review the Commercial Invoice Where a producer-specific rate is being claimed, check the prescribed documentary conditions of the applicable notification. The information should correctly identify the manufacturer and covered goods. Step 6: Check Customs Valuation and Exchange-Rate Requirements Review the assessable value, relevant freight and insurance components and applicable exchange-rate rules. Step 7: Examine Applicable Exemption Conditions Where imports are made under Advance Authorisation, verify whether the transaction meets the relevant exemption requirements. Step 8: Review Procurement and Compliance Records Consider whether supplier information, contracts, shipment documents and internal cost calculations are consistent. For businesses handling regular chemical imports, a periodic customs compliance review can help identify issues before they affect individual shipments. These are practical recommendations, not a new application process introduced by the October findings. How Corpseed Can Help With Import and Customs Compliance Importing industrial chemicals into India requires businesses to understand the applicable trade policy, customs classification and documentation requirements. An anti-dumping duty adds another issue to check, particularly where rates differ by manufacturer or product coverage is narrowly defined. Corpseed offers import-related registration and compliance services that may be relevant to businesses operating in international trade. Depending on the service required, Corpseed may assist in the following areas. 1. Import Compliance Services Businesses may need guidance on the regulatory requirements relevant to their import activity, including registration and documentation matters. Import compliance services may be useful when a business needs to identify the applicable service or import-related approval requirements. 2. Import Export Code (IEC) Registration Businesses undertaking import-export activities generally need an Importer Exporter Code, subject to the applicable exceptions. Corpseed provides IEC registration services for businesses requiring assistance with the registration process. 3. DGFT Licence Services Some products require import authorisation under the applicable DGFT import policy. Where a chemical is classified as restricted, businesses may need to examine the appropriate licensing provisions. Corpseed provides DGFT licence services for relevant restricted or controlled goods. The Arylides anti-dumping findings do not, by themselves, establish that a DGFT restricted-import licence is required. 4. ICEGATE Registration Assistance ICEGATE is India's electronic customs platform for filing and accessing relevant customs information and services. Corpseed offers ICEGATE registration assistance for eligible businesses. 5. Import Documentation and Compliance Support Importers should also ensure that documentation relating to the product, producer and relevant shipment details is accurate. The necessary documents depend on the transaction and applicable requirements. Businesses seeking assistance with import registration, DGFT approvals or related documentation can contact Corpseed to discuss the services relevant to their operations. Key Takeaways DGTR has recommended continuing existing anti-dumping duties on five specified Arylides varieties imported from China for another five years. The recommended rates remain 24.79%, 26.64% and 44.90% of CIF value, subject to the applicable producer, origin and export conditions. The authority based its recommendation on findings of continued dumping, injury to the domestic industry, pricing pressure and the likelihood of further injury if the existing measure expires. For importers, three points deserve particular attention: whether the product is covered, which producer-specific duty rate applies and which customs notification is legally operative. The Ministry of Finance had already extended the existing duty until 13 January 2027, unless changed earlier. DGTR's separate recommendation for a further five years requires Central Government action. Businesses should therefore check the applicable customs notifications, current tariff codes and relevant documentary conditions before assessing duty liability.

Subject

Summary: The Reserve Bank of India (RBI) has recently made some changes in the regulations governing some foreign exchange derivative transactions related to the Indian Rupee. According to a circular dated 12 October 2026, the RBI has put a new constraint on the INR-based Non-Deliverable Derivative Contracts (NDDCs) provided to non-residents. Additionally, it has imposed the obligation of maintaining a Foreign Exchange Risk Reserve (FERR) for certain derivatives contracted by Authorised Dealers. The change is important for banks and other permitted financial institutions dealing in foreign exchange derivatives. Under the new directions, covered contracts will attract a cash reserve equal to 20% of their INR-equivalent notional amount. The reserve must remain with RBI in India on a daily basis until the contract ends. For Authorised Dealers, this is more than a change in transaction permissions. The new requirement may also affect how treasury departments manage cash, review derivative positions and maintain internal controls. The circular does not impose a 20% reserve on every foreign exchange transaction in India. Its application depends on the nature of the contract, the parties involved, and the conditions laid down by RBI. RBI Circular 2026: Notification at a Glance RBI issued A.P. (DIR Series) Circular No. 27 under its framework for Risk Management and Inter-Bank Dealings. Particulars Details Issuing Authority Reserve Bank of India Department Financial Markets Regulation Department Circular Title Risk Management and Inter-Bank Dealings Circular Reference RBI/2026-27/293 Circular Number A.P. (DIR Series) Circular No. 27 Issue Date 12 October 2026 Addressed To All Authorised Dealers Existing Regulatory Framework Master Direction - Risk Management and Inter-Bank Dealings, dated 5 July 2016, as amended First Major Change INR-related NDDCs offered to non-residents restricted to hedging purposes Second Major Change Foreign Exchange Risk Reserve for specified Authorised Dealer transactions FERR Rate 20% Calculation Basis INR-equivalent notional amount of each covered contract Deposit Requirement Cash deposited and maintained with RBI in India Maintenance Frequency Daily Maintenance Period Until termination of the contract Applicability Foreign exchange derivative contracts undertaken after issuance Governing Legislation FEMA, 1999 and RBI Act, 1934 The circular does not give institutions a separate implementation period. Instead, it makes the directions applicable to relevant foreign exchange derivative contracts undertaken after issuance. What Is the Regulatory Framework for INR Derivative Contracts in India? Foreign exchange derivatives are regulated financial instruments. Banks and other authorised institutions cannot offer or undertake them without regard to the applicable RBI directions. The Foreign Exchange Management Act, 1999 (FEMA), and the RBI's Master Direction on Risk Management and Inter-Bank Dealings form an important part of this framework. Role of RBI in Foreign Exchange Transactions RBI regulates permitted foreign exchange activities and issues directions governing how Authorised Dealers conduct those activities. These directions address matters such as the types of derivative products that may be offered, eligible market participants, permitted transaction purposes and conditions governing foreign exchange dealings. The circular of 12 October 2026 pertains to two distinct subjects: INR denominated NDDC to be offered to non-residents and derivative transactions conducted by Authorised Dealers to cover their own currency risk. This does not mean that it covers all of the foreign exchange regulation regime. Foreign Exchange Management Act, 1999 FEMA is responsible for foreign exchange dealings in India. As regards the RBI circular it deals with: Section 10(4): Addresses the obligation of authorised persons to comply with RBI directions while dealing in foreign exchange or foreign securities. Section 11(1): Provides RBI with powers to issue directions to authorised persons concerning payments and related matters under FEMA. These provisions matter because the directions issued by RBI are not simply recommendations for affected Authorised Dealers. Section 45W of the Reserve Bank of India Act, 1934 The circular also relies on Section 45W of the RBI Act, 1934, which concerns RBI's regulatory powers over specified derivative and related financial market transactions. Together, the cited statutory provisions provide the legal basis for RBI to regulate the activities addressed in the circular. Master Direction - Risk Management and Inter-Bank Dealings The Master Direction was originally issued on 5 July 2016 and has been amended on several occasions. The version published by RBI and updated as of 1 October 2026 contains the earlier provision referred to in the new circular. Under paragraph 2.3(iii) of Section I, Part A, specified Authorised Dealers were permitted to offer NDDCs involving INR to non-resident users without a restriction on purpose. That position has now changed. An important point is that the Master Direction's other conditions, product permissions and requirements must still be considered. The October circular should not be read in isolation from the wider framework. What Are Non-Deliverable Derivative Contracts (NDDCs)? A Non-Deliverable Derivative Contract is a type of foreign exchange derivative settled in cash rather than through delivery of the full underlying currency amounts. It is an over-the-counter (OTC) contract, meaning it is arranged outside a recognised stock exchange, although OTC transactions may also be conducted through permitted electronic trading platforms. The value of a foreign exchange derivative depends on exchange-rate movements between currencies. How Does an NDDC Work? The parties to an NDDC agree to contractual terms linked to currency exchange rates. Unlike a deliverable derivative, the full notional amounts of the underlying currencies are not delivered when the contract is settled. Instead, the contract is settled through a cash amount determined by its terms. NDDCs can be used to manage foreign exchange exposure. Their use, however, remains subject to the permissions and conditions applicable to the particular transaction. Difference Between Deliverable and Non-Deliverable Derivatives Basis Deliverable Derivative Non-Deliverable Derivative Settlement May involve delivery of the relevant currencies Cash settlement without delivery of underlying notional amounts Contract Purpose Depends on the applicable RBI permissions Depends on the applicable RBI permissions Currency Exposure Linked to exchange-rate movements Linked to exchange-rate movements Applicable Conditions Product-specific RBI requirements Product-specific RBI requirements The distinction matters because the October circular specifically addresses the purpose for which INR-related NDDCs may be offered to non-resident users. What Does Hedging Mean in Foreign Exchange Transactions? Hedging is the use of a financial transaction to offset the effect of a currency exposure. That exposure may arise from a transaction already entered into or from an anticipated transaction, subject to the regulatory definition. For a business, a change in exchange rates can alter the rupee value of foreign currency payments or receipts. A hedge is intended to reduce the effect of such movements on the relevant exposure. This is different from entering into a derivative solely to benefit from a predicted currency movement. RBI's latest directions make this distinction especially important for INR-related NDDCs offered to non-residents. Scope and Applicability: Who Is Covered by the RBI INR Derivative Rules 2026? The new directions are addressed to Authorised Dealers, but the obligations do not operate identically for every transaction. The Master Direction generally uses the term Authorised Dealer for AD Category-I banks and Standalone Primary Dealers authorised as AD Category-III, unless stated otherwise. Authorised Dealer Category-I Banks AD Category-I banks are authorised to conduct permitted foreign exchange activities. The earlier NDDC provision specifically referred to Category-I banks with an operating IFSC Banking Unit. Where such banks offer covered INR-related NDDCs to non-resident users, the revised hedging-purpose restriction is relevant. A separate assessment is needed where a bank enters into derivatives to hedge currency risk arising from its own assets and liabilities. Standalone Primary Dealers The earlier provision also refers to Standalone Primary Dealers authorised as AD Category-III. Their permission to undertake relevant NDDC transactions is subject to the applicable RBI framework. Following the circular, covered NDDCs offered to non-resident users must satisfy the hedging-purpose restriction. Non-Resident Users Non-resident users are relevant because the first change directly concerns the conditions under which Authorised Dealers may offer them INR-related NDDCs. These users can no longer rely on the earlier permission allowing the specified NDDCs to be offered without a restriction on purpose. However, the 20% FERR obligation under Circular No. 27 is directed at Authorised Dealers undertaking covered transactions for their own currency risk. It should not automatically be described as a reserve that every non-resident customer must deposit. Which Transactions Attract the New FERR Requirement? Paragraph 3 concerns foreign exchange derivative contracts involving INR undertaken by an Authorised Dealer to hedge currency risk associated with its own assets and liabilities. The provision also specifies that FERR applies where the Authorised Dealer purchases foreign currency against INR. Category Applicability Under Circular No. 27 Covered INR-related NDDCs offered to non-residents Hedging-purpose restriction Authorised Dealer derivatives used to hedge own asset and liability currency exposure FERR may apply where the prescribed conditions are met Covered derivative in which the Authorised Dealer purchases foreign currency against INR Subject to FERR within the stated own-exposure framework Contracts undertaken before issuance New directions are not expressly made retrospective All ordinary foreign exchange purchases Not automatically covered merely because foreign currency is involved Non-resident customers Not automatically responsible for the Authorised Dealer's FERR deposit These conditions must be considered together. The transaction's regulatory classification matters more than the general label used to describe it. What Has Changed Under the RBI Circular Dated 12 October 2026? Two major changes have been effected by RBI. First, about the permissible use of a certain type of derivative offered to non-residents. Second, about the cash balances that have to be kept by Authorised Dealers with regard to certain own-exposure hedges. INR-Related NDDCs Are Now Restricted to Hedging Purposes Previously, the said Authorised Dealers could sell INR-linked NDDCs to non-residents without any such restriction of use as per paragraph 2.3(iii). Circular No. 27 removes that freedom. The revised position requires Authorised Dealers to offer such NDDCs to non-resident users only for hedging. This does not amount to a complete ban on NDDCs. It means that the purpose of the covered transaction must meet the new regulatory condition. For affected institutions, a practical response is to review how transaction purposes are assessed before covered contracts are offered. FERR Is Required for Specified Own-Exposure Hedges The circular also requires an Authorised Dealer to maintain a Foreign Exchange Risk Reserve for covered INR-related derivative contracts undertaken to hedge its own assets and liabilities. This is separate from the hedging-purpose restriction applicable to NDDCs offered to non-residents. An institution therefore needs to examine both provisions independently. FERR Applies to the Specified Direction of Currency Purchase The circular identifies contracts where the Authorised Dealer is purchasing foreign currency against INR. This is an important condition. A derivative involving INR should not automatically be classified as subject to this requirement without examining the direction of the transaction and its connection to the Authorised Dealer's own exposure. Reserve Set at 20% of the Notional Amount RBI has prescribed a FERR equal to 20% of the INR-equivalent notional amount of each applicable derivative contract. The requirement is linked to the contract's notional amount, not the profit earned on that contract. Reserve Must Be Held in Cash Until the Contract Ends The amount must be deposited and maintained with RBI in India. It must be maintained daily and continue until termination of the contract. For affected banks, this makes FERR an ongoing treasury and reserve-management consideration. Old vs New RBI Requirements for INR Derivative Contracts The earlier and revised provisions can be compared as follows. Regulatory Area Earlier Position Revised Position INR-related NDDCs offered to non-residents Specified Authorised Dealers could offer them without restriction on purpose Such contracts may be offered only for hedging Purpose of covered NDDCs No purpose restriction under the cited earlier provision Hedging is required Reserve on specified own-exposure derivatives Not established by the earlier NDDC permission Express FERR obligation under Circular No. 27 Reserve percentage The 20% FERR framework was separately introduced for specified user transactions on 10 October 20% applies to contracts covered by the 12 October directions Reserve deposit Depends on the relevant earlier framework Cash maintained with RBI in India Duration Depends on the applicable earlier directions Daily until contract termination Applicability to contracts Earlier framework governs transactions undertaken before the new directions New directions apply to contracts undertaken after issuance The comparison makes one point clear: not every change concerns the same type of transaction. The NDDC restriction addresses dealings with non-resident users. The reserve provision addresses qualifying derivatives undertaken by Authorised Dealers for their own currency exposures. What Is the Foreign Exchange Risk Reserve (FERR)? FERR is the cash reserve prescribed by RBI against specified foreign exchange derivative contracts. Under Circular No. 27, an Authorised Dealer must maintain this reserve when the relevant derivative contracts satisfy the conditions laid down in paragraph 3. Why Is FERR Different from Other Banking Reserves? Banks are subject to several financial and prudential requirements, but FERR should not be confused with the Cash Reserve Ratio (CRR) or Statutory Liquidity Ratio (SLR). FERR is linked to covered derivative contracts and is calculated using their INR-equivalent notional amounts. It is not a general reserve based on every bank deposit or a charge imposed on every customer buying foreign currency. Who Must Maintain FERR? The obligation rests with the Authorised Dealer undertaking the covered transaction. The circular does not shift this obligation to every customer dealing with that institution. What Does the Reserve Mean for Treasury Management? Cash maintained against covered derivatives may affect the funds available for other treasury purposes during the life of those contracts. That is a practical implication of the requirement rather than a separate rule stated in the circular. Institutions with relevant derivative portfolios may need to consider the reserve when planning liquidity and monitoring currency positions. How Is the 20% Foreign Exchange Risk Reserve Calculated? The RBI has prescribed the percentage and the basic calculation method. For each covered derivative contract, FERR must equal 20% of its INR-equivalent notional amount. What Is the Notional Amount? A derivative contract has a reference amount known as the notional amount. This amount is used in determining the contract's economic exposure and relevant settlement calculations. It is not necessarily the cash amount paid or received by either party at settlement. What Is the INR-Equivalent Notional Amount? The INR-equivalent notional amount is the value of the contract's notional amount expressed in Indian Rupees. Where conversion is necessary, the institution must use the applicable method under the relevant regulatory and operational framework. Circular No. 27 does not independently prescribe a complete exchange-rate conversion methodology for every circumstance. FERR Calculation Formula FERR = 20% × INR-equivalent notional amount of each applicable contract The calculation is contract-based. The circular does not expressly provide a general permission to reduce the reserve through netting unrelated contracts. Is There a Minimum Transaction Threshold? Circular No. 27 does not expressly prescribe a USD 2 million threshold for the own-exposure hedges covered by it. This is an important difference from RBI Circular No. 26 dated 10 October 2026. Circular No. 26 applies a USD 2 million-equivalent threshold to certain foreign exchange derivative contracts undertaken with users for hedging current account transactions, where the user purchases foreign currency against INR. That threshold should not automatically be carried over to Circular No. 27. Is the 20% Reserve a Government Fee? No. The reserve is a prescribed amount of cash to be maintained with RBI against covered derivative contracts. The circular does not describe it as a licence fee, transaction tax, application charge or penalty. Any financial cost resulting from maintaining the reserve must be considered separately from the legal amount prescribed. FERR Deposit and Daily Maintenance Requirements Paragraph 3(iv) specifies how the reserve must be maintained. Requirement RBI Direction Practical Consideration Form of Reserve Cash Maintain the prescribed amount in the required form Location India Reserve must be deposited in India with RBI Institution Holding Reserve Reserve Bank of India Relevant Authorised Dealer must follow the applicable RBI arrangement Maintenance Frequency Daily Monitor the required reserve against covered contracts Maintenance Period Until contract termination Account for the life of the contract Cash Maintenance Is Required The circular expressly requires the reserve to be maintained in cash. It does not prescribe an alternative under which the relevant Authorised Dealer may substitute unrelated financial assets for the required cash reserve. The Reserve Must Be Held with RBI The requirement is to deposit and maintain FERR with the Reserve Bank of India. The circular does not provide a separate public application process, deposit portal or detailed account-opening procedure for this obligation. Daily Monitoring Becomes Important Since the reserve must be maintained daily, Authorised Dealers need to pay attention to the outstanding contracts for which the requirement applies. Institutions may use internal treasury and finance controls to check that the prescribed amounts are maintained. Such internal arrangements are implementation practices; they are not a separately prescribed workflow under Circular No. 27. Reserve Maintenance Ends with Contract Termination The direction requires maintenance until termination of the contract. Where a contract is amended, replaced, rolled over or terminated early, the appropriate regulatory treatment should be established from the applicable rules and clarifications. It should not be decided solely by assuming that every contractual change has the same effect. Difference Between RBI Circular No. 26 and Circular No. 27 of 2026 RBI issued two related directions within a short period, but their coverage is different. Circular No. 26, dated 10th October 2026, refers to the foreign exchange derivative contracts executed with the user. Circular No. 27, dated 12th October 2026, brings out the hedging limitation applicable to relevant INR NDDCs offered to non-residents and applies FERR provisions to specified own-exposure transactions of Authorised Dealers. Particulars Circular No. 26 Circular No. 27 Issue Date 10 October 2026 12 October 2026 Main FERR Coverage Specified derivative transactions undertaken with users Specified derivatives undertaken by Authorised Dealers to hedge their own assets and liabilities Relevant Currency Purchase User purchases foreign currency against INR Authorised Dealer purchases foreign currency against INR Notional Threshold Exceeding USD 2 million equivalent for specified transactions No separate threshold expressly stated Reserve Rate 20% 20% Reserve Maintenance Daily cash maintenance with RBI Daily cash maintenance with RBI CIMS Reporting Expressly provided in Circular No. 26 Not separately prescribed in Circular No. 27 Additional NDDC Restriction Not the principal change covered here NDDCs involving INR offered to non-residents restricted to hedging Why This Difference Matters Banks may undertake derivative transactions for customers as well as for managing their own currency exposure. The applicable requirements cannot be determined simply by looking at whether INR is involved. It is necessary to identify who is purchasing foreign currency, the purpose of the contract and the particular circular governing the transaction. Applying conditions from one circular indiscriminately to the other could lead to an incorrect compliance assessment. When Do the New RBI Directions Come Into Effect? Circular No. 27 was issued on 12 October 2026. Paragraph 4 states that the directions apply to foreign exchange derivative contracts undertaken after issuance. Applicability to New Contracts Relevant contracts undertaken after issuance must be assessed against the revised requirements. An affected Authorised Dealer should therefore consider the applicable directions before undertaking a covered transaction. What Happens to Existing Contracts? The circular does not expressly make the new requirements retrospective for contracts undertaken before its issuance. This means the document itself does not impose a blanket retrospective FERR obligation on all older contracts. However, the treatment of subsequent amendments or replacement contracts should be checked against the applicable regulatory framework. Is There a Separate Compliance Deadline? No separate transition deadline or grace period is expressly mentioned in Circular No. 27. The relevant trigger is the undertaking of a covered contract after issuance of the directions. Institutions should not assume they have an additional fixed period to begin complying. How Will the RBI Directions Affect Banks and Financial Institutions? The impact depends on the transactions an institution undertakes. A bank that does not enter into the relevant derivative contracts will not necessarily face the same operational requirements as one with a substantial portfolio of covered positions. Impact on Authorised Dealer Banks Banks offering INR-related NDDCs to non-resident users must consider the revised hedging-purpose condition. Those undertaking their own covered foreign exchange derivatives must also assess FERR. For affected institutions, the work may involve reviewing transaction classifications, reserve calculations and the internal responsibility for daily maintenance. Impact on Standalone Primary Dealers Eligible Standalone Primary Dealers also need to take account of the purpose restriction where they offer the relevant NDDCs. Where their transactions satisfy the conditions of paragraph 3, the FERR requirement must be considered. Impact on Non-Resident Users Non-resident users seeking INR-related NDDCs are affected by the change in permissible purpose. A transaction that does not qualify as hedging cannot rely on the earlier unrestricted-purpose permission under the cited provision. The circular does not, however, prohibit every non-resident from using an INR-related derivative for a permitted hedging purpose. Impact on Banking Treasury Departments Treasury departments may need to assess how much cash must be maintained against covered contracts. This could influence: Daily liquidity planning. Internal monitoring of currency exposure. Allocation of cash resources. Coordination between trading, treasury and finance functions. Review of outstanding derivative positions. These are potential operational implications. Their actual financial effect will vary by institution. Impact on Risk Management and Compliance Teams The changes also make it important to distinguish between the different purposes for which derivatives are undertaken. A transaction used to hedge a customer's exposure is not automatically governed by the same conditions as a contract used by an Authorised Dealer to hedge its own assets and liabilities. Internal reviews should preserve that distinction. What Are the Compliance Responsibilities of Authorised Dealers? The principal obligations under Circular No. 27 can be grouped into two areas. Obligations Relating to NDDCs For covered INR-related NDDCs offered to non-resident users, the Authorised Dealer must comply with the hedging-purpose restriction. A review of the proposed transaction's purpose is therefore relevant. The circular does not, by itself, introduce a new named declaration form or a separate NDDC registration portal. Obligations Relating to FERR For applicable own-exposure derivative contracts, the Authorised Dealer must: Determine whether the contract falls within paragraph 3. Identify the INR-equivalent notional amount. Calculate FERR at 20%. Deposit and maintain the required reserve in cash with RBI in India. Maintain the reserve daily until the contract terminates. These points reflect the express reserve provisions. Documentation and Records The circular does not contain a new documentary checklist or a specified record-retention period for FERR. Nevertheless, accurate transaction and calculation records may help an institution demonstrate how it has assessed and met the relevant obligation. Any independently applicable reporting and recordkeeping duties under other directions must be considered separately. Risks and Consequences of Incorrect Compliance Incorrectly applying the revised directions may expose an affected institution to regulatory and operational difficulties. The specific nature of the risk depends on the relevant provision and circumstances. Incorrect Transaction Classification If a contract is treated as outside the directions without examining its characteristics, the institution may overlook an applicable requirement. Inaccurate FERR Calculation Using the wrong notional amount or incorrectly identifying a covered contract could result in a reserve amount that does not match the prescribed calculation. Failure to Maintain the Required Cash Reserve Where the obligation applies, failing to maintain the required cash reserve would be inconsistent with the circular's express directions. Confusing the Two October Circulars Applying the USD 2 million threshold from Circular No. 26 automatically to Circular No. 27 could lead to an incorrect assessment of own-exposure transactions. Similarly, reporting obligations should be attributed to the circular or governing provision that actually prescribes them. Are Specific Penalties Prescribed? Circular No. 27 does not expressly specify a separate monetary penalty, suspension period or prosecution procedure for breach of these directions. It would therefore be misleading to publish particular penalty amounts without examining and citing the applicable statutory provisions and their enforcement conditions. What Should Banks and Authorised Dealers Do Next? For affected institutions, a targeted review of foreign exchange derivative activity is more useful than treating the circular as a general banking compliance exercise. Step 1: Identify Relevant Derivative Activities Review whether the institution offers INR-related NDDCs to non-resident users, undertakes derivatives for its own currency exposure, or both. Step 2: Check the Purpose of Covered NDDCs Assess whether the proposed INR-related NDDCs offered to non-residents are for hedging. Where necessary, examine the institution's existing method for understanding and recording transaction purposes. Step 3: Identify Contracts Subject to FERR Check the conditions in paragraph 3, particularly: Whether the contract involves INR. Whether it hedges currency risk relating to the Authorised Dealer's own assets and liabilities. Whether the Authorised Dealer purchases foreign currency against INR. As to whether the contract is included within the time span of the directions. Step 4: Review Reserve Calculation Verify that contracts under coverage are evaluated based on the 20% rule and the appropriate notional value in INR. Step 5: Check Daily Reserve Maintenance Evaluate arrangements for maintaining the required cash with RBI until termination of the contract. Step 6: Review Internal Financial Controls Institutions may examine whether their transaction classifications, approval records, reserve calculations and reconciliations are adequately controlled. Where an independent review is appropriate, internal audit arrangements may help identify weaknesses in the institution's operational controls. Step 7: Check Subsequent RBI Directions Operational queries that are not covered by Circular No. 27 can be judged on the basis of subsequent RBI clarifications, if any. This is proportional compliance and risk management measures. It should not be considered a new registration requirement under law. Financial and Operational Challenges for Affected Institutions The cash reserve requirement may influence how affected Authorised Dealers manage their resources. Liquidity Planning Cash maintained under FERR is committed to meeting a regulatory requirement during the life of the covered contract. Institutions may therefore need to consider these amounts when reviewing available treasury funds. Maintaining Accurate Contract Information Identifying relevant contracts requires accurate information about the transaction purpose, currency pair, notional amount and contract status. Inaccurate classification may complicate reserve calculations. Coordination Between Departments Trading, treasury, finance, risk management and compliance departments may need a consistent understanding of which transactions attract FERR. Clear internal responsibility can help reduce errors and unnecessary duplication of reviews. Operational Questions Not Answered by the Circular Circular No. 27 does not provide a complete explanation of every operational issue, including the detailed treatment of modified derivative contracts or the precise deposit mechanism. Institutions should distinguish such open questions from requirements that RBI has already stated clearly. How Corpseed Can Help with FEMA and Regulatory Compliance The RBI's October 2026 directions show why foreign exchange compliance needs to be assessed against the actual business activity and applicable regulatory provisions. A business dealing with cross-border transactions may require assistance understanding relevant FEMA requirements, while an Authorised Dealer undertaking covered derivatives must also address the specialised RBI directions applicable to those transactions. Corpseed offers FEMA compliance services for businesses seeking support with foreign exchange-related regulatory requirements. Depending on the engagement, relevant assistance may include: Understanding the applicability of FEMA requirements. Reviewing compliance-related documentation. Identifying regulatory requirements connected with foreign exchange activities. Supporting broader regulatory compliance reviews. Assessing whether existing internal controls and audit arrangements require further examination. Corpseed also offers services relating to internal financial controls and internal audits. These may be relevant where a business is reviewing its broader financial control environment. Specialised FERR calculations, treasury implementation and derivative-contract interpretations should be handled by appropriately qualified banking and financial regulatory professionals. Need assistance understanding FEMA compliance requirements? Contact Corpseed to discuss the regulatory requirements relevant to your organisation and the support available for your specific needs. Key Takeaways The RBI circular dated 12 October 2026 brings two changes to the regulatory treatment of specified INR-related foreign exchange derivative activities. First, NDDCs involving INR offered to non-resident users are now restricted to hedging purposes under the revised directions. Second, Authorised Dealers must maintain a Foreign Exchange Risk Reserve equal to 20% of the INR-equivalent notional amount of covered derivative contracts undertaken to hedge currency risks associated with their own assets and liabilities. The reserve must be held in cash with RBI in India, maintained daily and continued until termination of the contract. These directions apply to foreign exchange derivative contracts undertaken after issuance. For affected institutions, the priority is to identify the transactions covered by the directions, determine the reserve obligation correctly and ensure that relevant internal processes reflect the new requirements.

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Summary: Manufacturers of utensils and beverage cans made of aluminium must revalidate the compliance date of their BIS certificate. The government has notified the Cookware, Utensils and Cans for Foods and Beverages (Quality Control) Second Order, 2026, which amends the earlier implementation schedule notified during the year. The Ministry of Commerce and Industry, through its Department for Promotion of Industry and Internal Trade (DPIIT), has made the order through Notification S.O. 5624(E), dated 13th October 2026, superseding the previous Quality Control Order made in January 2026, save as per the saving provision. The revised requirements affect two product categories: wrought aluminium utensils covered by IS 1660:2024 and aluminium cans for beverages covered by IS 14407:2023. For wrought aluminium utensils, BIS compliance applies with immediate effect under the Second Order, including for micro and small enterprises. Beverage can manufacturers have been given more time, with different deadlines in 2027 based on enterprise classification. The notification also covers the compulsory use of the BIS Standard Mark, treatment of existing stock, import-related exemptions and research and development (R&D) imports. Businesses that manufacture or import these products should first identify the applicable Indian Standard and then check whether they require a BIS licence under the revised schedule. Notification at a Glance The Second Quality Control Order sets out the revised implementation dates while continuing the mandatory BIS conformity assessment framework for the notified products. Particular Details Notification title Cookware, Utensils and Cans for Foods and Beverages (Quality Control) Second Order, 2026 Notification number S.O. 5624(E) Issuing authority DPIIT, Ministry of Commerce and Industry Order date 13 October 2026 Gazette reference CG-DL-E-14102026-277150 Commencement Date of publication in the Official Gazette Governing legislation Bureau of Indian Standards Act, 2016 Conformity assessment framework Scheme-I of Schedule-II, BIS (Conformity Assessment) Regulations, 2018 Applicable Indian Standards IS 1660:2024 and IS 14407:2023 Main requirement Conformity with the relevant Indian Standard and use of the BIS Standard Mark under a licence Earlier notification S.O. 219(E), dated 15 January 2026 Certification authority Bureau of Indian Standards Enforcement authority Bureau of Indian Standards The notification does not impose one common deadline for every product in its title. The applicable date depends on the relevant Indian Standard and, for aluminium beverage cans, whether the manufacturer falls within the general, small or micro enterprise category. What Is the Regulatory Framework Behind the Second QCO, 2026? The Government has issued the Second Order under the Bureau of Indian Standards Act, 2016. This Act provides the legal basis for prescribing Indian Standards, granting certification licences and making conformity requirements compulsory for notified goods. An Indian Standard can exist without being compulsory for every product covered by it. A Quality Control Order changes that position for the goods it specifies by making conformity and authorised Standard Mark use mandatory from the applicable implementation date. Bureau of Indian Standards Act, 2016 The notification refers to Sections 16 and 17, read with Section 25(3) of the Act. Section 16 - Compulsory Use of Standard Mark This section empowers the Central Government to require specified goods or articles to comply with the applicable standards and carry the Standard Mark. Such requirements may be notified in the public interest or for the other purposes specified under the Act. Section 17 - Restrictions on Non-Compliant Products Once a compulsory requirement becomes applicable, Section 17 restricts specified activities involving covered goods that do not meet the applicable conformity and certification requirements. These restrictions are relevant not only to manufacturers but also to importers, distributors and sellers. Section 25(3) - Government Action Relating to Product Quality This provision allows the Central Government to take specified action concerning the promotion, monitoring and management of quality, including notifying goods for compulsory requirements under Section 16. Role of DPIIT and BIS DPIIT is the department responsible for issuing this Quality Control Order. The Bureau of Indian Standards (BIS) has a separate role. Under Clause 3 of the Second Order, BIS is the certification and enforcement authority for the notified goods. Manufacturers seeking certification must therefore follow the applicable BIS conformity assessment requirements. How Scheme-I Applies Clause 2 refers to Scheme-I of Schedule-II of the BIS (Conformity Assessment) Regulations, 2018. This is the framework associated with product certification and authorised use of the BIS Standard Mark, commonly known as the ISI Mark. A manufacturer's obligation is not limited to getting a product tested. The applicable licensing conditions must also be satisfied before the Standard Mark can be used. Why Has the Government Issued the Second Quality Control Order? The Second Order records that the Central Government considers the measure necessary or expedient in the public interest after consulting BIS. The notification itself does not give a detailed explanation for revising the individual implementation dates. However, the practical purpose of a Quality Control Order is clear. It establishes a mandatory conformity framework for the specified goods. For affected businesses, this means that products have to meet the relevant Indian Standard and carry the Standard Mark under an appropriate BIS licence once the requirement applies. The October notification also separates the compliance schedules of the two product categories. Previously, both standards were covered by the same set of implementation dates. Under the Second Order, wrought aluminium utensils remain subject to immediate requirements, while aluminium beverage cans receive later implementation dates. This distinction matters because a business cannot rely on the longer beverage can deadline for a different product covered by IS 1660:2024. What Has Changed Under the Second QCO, 2026? The main change is the implementation schedule. DPIIT had issued the earlier Cookware, Utensils and Cans for Foods and Beverages (Quality Control) Order, 2026 through Notification S.O. 219(E), dated 15 January 2026. That Order covered IS 1660:2024 and IS 14407:2023 and provided the same three implementation dates for both standards. The Second Order replaces that arrangement. Old vs New BIS Certification Deadlines Product and enterprise category Earlier deadline Revised position Wrought aluminium utensils - General category 1 October 2026 Immediate effect Wrought aluminium utensils - Small enterprises 1 January 2027 Immediate effect Wrought aluminium utensils - Micro enterprises 1 April 2027 Immediate effect Aluminium beverage cans - General category 1 October 2026 1 April 2027 Aluminium beverage cans - Small enterprises 1 January 2027 1 July 2027 Aluminium beverage cans - Micro enterprises 1 April 2027 1 October 2027 Wrought Aluminium Utensils: Earlier MSME Dates No Longer Apply For IS 1660:2024, the Second Order states that implementation is with immediate effect across the general, small and micro enterprise categories. The general implementation date under the January Order had already arrived on 1 October 2026. The important change concerns small and micro enterprises. Their earlier future dates have been replaced by immediate implementation under the Second Order. A small enterprise manufacturing covered wrought aluminium utensils should therefore not rely on the previous 1 January 2027 date. The same applies to micro enterprises that were previously covered by the 1 April 2027 date. Aluminium Beverage Cans: Revised Dates Extend Into 2027 Manufacturers of aluminium beverage cans covered by IS 14407:2023 have been given later deadlines. The general implementation date is now 1 April 2027. For small enterprises, the date is 1 July 2027, while micro enterprises have until 1 October 2027. Each category receives an additional six months compared with the implementation dates in the January 2026 Order. What Has Not Changed? The Second Order continues several provisions already found in the January notification, including: The requirement for conformity with the applicable Indian Standard and use of the BIS Standard Mark under a licence. Exemption for goods manufactured domestically for export. Conditional treatment of qualifying existing stock. Exemption for certain imported goods already filled with material. Limited exemption for research and development imports. BIS's role as certification and enforcement authority. These should not be presented as completely new exemptions. The October Order also expressly includes a penalty clause referring to the BIS Act, 2016. The underlying statutory penalty provisions already existed under that Act. Which Products Are Covered Under the Cookware, Utensils and Cans QCO 2026? The title of the Order refers broadly to cookware, utensils and cans. However, its implementation table identifies two specific Indian Standards. Businesses must examine those entries before deciding whether a product is covered. A. Wrought Aluminium Utensils - IS 1660:2024 The first entry relates to wrought aluminium utensils. These are aluminium products manufactured by shaping or forming the metal into the required utensil. The relevant Indian Standard is IS 1660:2024. BIS's product manual for this standard addresses different utensil groups, material requirements, construction, dimensions, workmanship and testing arrangements. There is an important point concerning the product scope. The QCO table identifies Wrought Aluminium Utensils, whereas the BIS product manual for IS 1660:2024 is titled Wrought and Cast Aluminium Utensils. Manufacturers should therefore check the specific QCO coverage before assuming that every cast aluminium product mentioned in the broader standard is automatically covered by this Order. B. Aluminium Cans for Beverages - IS 14407:2023 The second entry concerns aluminium cans for beverages. These products are covered by IS 14407:2023. The standard and its BIS product manual address product characteristics such as materials, construction, dimensions, finishes and testing requirements. Manufacturers producing beverage cans should examine the specific can types and product varieties covered by their manufacturing activities. Which Businesses Should Check Applicability? Business type What needs to be checked Aluminium utensil manufacturers Whether products fall within the notified IS 1660:2024 category Beverage can manufacturers Whether products fall within IS 14407:2023 Micro enterprises Product classification and applicable implementation date Small enterprises Product classification and applicable implementation date Medium and large manufacturers General implementation date for the relevant standard Importers Product applicability, manufacturer certification and available exemptions Existing BIS licence holders Whether the licence covers the relevant Indian Standard and product varieties Dealers and distributors Whether goods can legally be sold or supplied under the applicable requirements The Second Order should not be read as bringing every kitchen product, stainless steel utensil or food container under these two standards. Separate notifications may regulate other product categories. Which Indian Standards Must Manufacturers Follow? Manufacturers need to understand the technical standard applicable to their product. The QCO identifies the standard, but it does not reproduce every technical specification. Detailed conformity assessment depends on the relevant Indian Standard and BIS guidance. IS 1660:2024 - Aluminium Utensils IS 1660:2024 contains requirements relating to aluminium utensils. The BIS product manual addresses matters such as: Raw Materials: Grades of aluminum material relevant to various components. Construction: Characteristics pertaining to product design and manufacture. Dimensions: Dimensions and thicknesses relevant. Workmanship: Product finish, surface condition and manufacturing quality. Testing: Applicable performance and other tests. Product classification: Different utensil varieties and their treatment under certification. A manufacturer seeking BIS ISI Certification should examine the standard and product manual together. Simply manufacturing a product from aluminium does not establish conformity with IS 1660:2024. IS 14407:2023 - Aluminium Cans for Beverages IS 14407:2023 sets out specifications for aluminium beverage cans. The BIS product manual addresses: Material specifications. Types and capacities of cans. Dimensional requirements. Internal and external finishes. Relevant strength and performance tests. Sampling and testing requirements. Product varieties covered by certification. Manufacturers should check the product varieties proposed for inclusion in their BIS licence. Indian Standards Comparison Particular IS 1660:2024 IS 14407:2023 Notified product Wrought aluminium utensils Aluminium cans for beverages Main regulatory concern Conformity of relevant aluminium utensils Conformity of relevant beverage cans Certification framework BIS Scheme-I BIS Scheme-I Standard Mark Required under an appropriate BIS licence Required under an appropriate BIS licence Implementation Immediate effect Different dates in 2027 What if BIS Revises the Standard? The Second Order states that the latest version of an Indian Standard, including amendments notified by BIS, will apply from the date of the relevant notification. Manufacturers should not rely indefinitely on an older testing document or product specification. Before applying for certification or reviewing an existing licence, the applicable standard version and any notified amendments should be checked. Is BIS Certification Mandatory for Aluminium Utensils and Beverage Cans? BIS certification is compulsory for products covered by the Second QCO once their applicable implementation date arrives, unless a valid exemption applies. Clause 2 requires the notified goods to conform to the relevant Indian Standard and bear the Standard Mark under a licence issued by BIS. This requirement follows Scheme-I of the BIS (Conformity Assessment) Regulations, 2018. What Is the Difference Between BIS Certification and ISI Marking? BIS certification is the process through which the competent authority assesses conformity under the applicable certification scheme. The ISI Mark is the commonly used name for the BIS Standard Mark associated with Scheme-I product certification. The two are connected, but obtaining a laboratory report is not the same as receiving permission to use the Standard Mark. A manufacturer needs the appropriate BIS licence and must satisfy its conditions. What Should a BIS Licence Cover? A licence relates to a specified Indian Standard and the approved scope of products. Manufacturers should check whether the licence covers the products they actually manufacture. Relevant details may include: The Indian Standard identified in the licence. The authorised manufacturing location. The product groups or varieties included. Applicable licence conditions. Current licence validity. Testing and quality control arrangements. An existing BIS licence for another product cannot automatically be used for covered aluminium utensils or beverage cans. How to Apply for BIS ISI Certification The exact procedure depends on the relevant BIS scheme, product standard and official guidance. The main stages generally involve the following activities. 1. Identify the Applicable Indian Standard The manufacturer must first establish which standard applies to the product. An incorrect product classification can lead to a certification application that does not address the actual requirement. 2. Review the Product's Technical Requirements The manufacturer should examine the applicable standard, product manual and testing requirements. This helps identify whether changes to manufacturing controls or testing arrangements may be needed. 3. Prepare the BIS Application The prescribed application information and supporting documents must be prepared according to BIS requirements. The documents vary depending on the certification route and product. 4. Complete the Applicable Conformity Assessment BIS assesses the application under the relevant scheme. This may involve examination of manufacturing arrangements, factory assessment and product testing, as applicable. 5. Obtain the BIS Licence Once BIS grants the appropriate licence, the manufacturer may use the Standard Mark according to its approved scope and conditions. Submitting an application does not itself authorise a manufacturer to use the ISI Mark. Manufacturers unfamiliar with the application process may seek professional BIS Certification Services for guidance on the appropriate certification route and documentation. What Are the Revised BIS Compliance Deadlines for Manufacturers and MSMEs? The Second Order gives two very different implementation schedules. For wrought aluminium utensils, the mandatory requirements apply with immediate effect. For aluminium beverage cans, the deadlines depend on enterprise classification. Revised Implementation Timeline Indian Standard General category Small enterprises Micro e nterprises IS 1660:2024 - Wrought Aluminium Utensils Immediate effect Immediate effect Immediate effect IS 14407:2023 - Aluminium Cans for Beverages 1 April 2027 1 July 2027 1 October 2027 Immediate Implementation for Wrought Aluminium Utensils The Second Order removes the separate future implementation dates previously available to small and micro enterprises for the notified IS 1660:2024 category. The requirement takes effect with the commencement of the Second Order, which is tied to its publication in the Official Gazette. Manufacturers should not assume that a previously applicable MSME deadline remains available after supersession. Deadlines for Aluminium Beverage Cans The later dates apply to the notified IS 14407:2023 category. General manufacturers - 1 April 2027 This is the date for the general category, other than enterprises separately covered as small or micro enterprises. Small enterprises - 1 July 2027 The Order provides a separate date for small enterprises as defined under the MSMED Act, 2006. Micro enterprises - 1 October 2027 Micro enterprises receive the latest implementation date for this product category. How Should Businesses Confirm Their MSME Category? The notification refers to the definitions under the Micro, Small and Medium Enterprises Development Act, 2006. Manufacturers should check their classification under the applicable legal framework. Businesses should not rely only on how they describe themselves commercially. The relevant classification must be supported by the applicable criteria. A medium enterprise should not assume that it qualifies for a deadline specifically provided to small or micro enterprises. What Exemptions Are Available Under the Second QCO, 2026? The Second Order contains several exemptions, but they do not apply to every business or every product. Each exemption should be read with its conditions. A. Exemption for Goods Manufactured in India for Export The Order does not apply to goods or articles manufactured domestically for export. This provision concerns the specified goods manufactured in India for overseas markets. It should not be treated as a general exemption for all export-related or import-related activities. Businesses relying on this provision should be able to support the intended export status of their goods. B. Exemption for Qualifying Existing Stock The notification provides limited relief for certain products manufactured or imported before the relevant implementation date. The stock must satisfy the qualifying conditions, and a Chartered Accountant-certified declaration must be made to BIS. A separate six-month provision governs the permitted sale, display or offer for sale of such stock. C. Exemption for Imported Goods Already Filled With Material The Order excludes the relevant goods or articles when imported into India filled with material in solid, liquid or gaseous form. This makes the condition of the goods at the time of import important. Importers should not assume that the same exemption applies to empty imported containers. D. Research and Development Imports Manufacturers of cookware, utensils and cans for foods and beverages may qualify for the exemption for up to 200 relevant goods or articles imported per year for R&D. The imported products cannot be sold commercially. The notification also requires scrap disposal and year-wise records that must be furnished to the Central Government. Exemption Comparison Table Exemption Eligibility or scope Important condition Domestic production for export Specified goods manufactured in India for export Goods must fall within the export exemption Existing stock Qualifying pre-implementation goods CA-certified declaration and limited stock clearance Filled imports Relevant goods imported with solid, liquid or gaseous contents Goods must satisfy the filled-import condition R&D imports Qualifying manufacturers importing relevant articles for R&D Up to 200 articles annually; no commercial sale; scrap disposal and records These exemptions do not cancel any separate legal requirements that may apply under other laws. Can Manufacturers and Importers Sell Existing Stock After the QCO Takes Effect? The Second Order provides a conditional opportunity to clear qualifying goods that were manufactured domestically or imported before the relevant implementation date. This provision is particularly important for businesses holding older inventory. However, having stock in a warehouse does not automatically qualify it for relief. Which Stock Can Qualify? The notification refers to goods manufactured domestically or imported before the applicable implementation date by the qualifying persons identified in the provision. These include: Manufacturers already certified by BIS. Manufacturers who have applied to BIS for certification. Importers of the relevant goods or articles. The remaining conditions of the stock provision must also be satisfied. How Long Can Existing Stock Be Sold? The Order permits qualifying declared stock to be sold, displayed or offered for sale for up to six months from the applicable implementation date. Because the notification contains different implementation dates, the starting point for these six months must be determined separately for each applicable category. Businesses should not automatically calculate the stock-clearance period from the date on which they received their goods or from the date on which the Order was signed. Chartered Accountant Declaration A key condition is the declaration to BIS certified by a Chartered Accountant. The declaration concerns the qualifying stock covered by the transitional provision. The notification itself does not set out a separate detailed filing format or a complete supporting-document checklist. Manufacturers and importers should follow any applicable BIS instructions for the submission. What Records Should Businesses Review? To establish the stock position accurately, businesses should review the records relevant to their goods. These may include: Manufacturing and production records. Import documentation. Purchase records. Stock registers and inventory statements. Applicable BIS licence or application details. Information supporting the CA-certified declaration. This is practical record-review guidance. The individual records listed here should not all be treated as separate statutory documents expressly required by the October QCO. What Are the Import Compliance Requirements Under the Second QCO? Importers should not assume that the notification concerns only Indian manufacturers. The BIS Act contains restrictions relating to covered goods, and the QCO itself recognises specific import situations. Importers need to identify whether the imported goods fall within the notified product categories and whether any exemption applies. Import of Covered Aluminium Utensils For imported goods falling within the notified IS 1660:2024 category, the applicable mandatory conformity position needs to be checked before arranging commercial imports. The immediate implementation requirement makes this particularly relevant. Import of Aluminium Beverage Cans The revised 2027 dates apply to the notified IS 14407:2023 category. Importers should account for these dates when reviewing supply contracts and orders for the Indian market. However, a future implementation date should not be mistaken for an exemption from every other applicable import requirement. Imported Filled Containers The Order expressly exempts goods or articles imported into India filled with solid, liquid or gaseous material. Importers should examine whether the products meet the wording of this exemption. The provision should not automatically be extended to empty imported beverage cans. Research and Development Import Conditions The R&D provision is limited and conditional. It covers up to 200 relevant articles imported per year by qualifying manufacturers for research and development. Four conditions deserve particular attention: Non-commercial use: The imported articles must not be sold commercially. Scrap disposal: The articles must be disposed of as scrap. Year-wise records: The manufacturer must maintain records of the imported articles for each year. Submission to Government: The records must be furnished to the Central Government. A manufacturer using these imports for ordinary commercial sale would not satisfy the conditions of this exemption. Foreign Manufacturer Certification Where products made outside India require BIS Scheme-I certification for the Indian market, the relevant manufacturer may need to examine the Foreign Manufacturers Certification Scheme (FMCS). The applicable requirements depend on the product, certification status and the terms of the QCO. Importers working with overseas suppliers may consider BIS FMCS Certification guidance where it is relevant to their supply arrangements. How Does the Second QCO Affect Manufacturers, Importers and MSMEs? The impact of the Second Order depends mainly on the product manufactured and the enterprise category. Aluminium Utensil Manufacturers Manufacturers of covered wrought aluminium utensils face the most immediate compliance position under the Second Order. The earlier future dates for small and micro enterprises have been replaced by immediate implementation. Businesses should examine: Whether the product falls within the notified IS 1660:2024 category. Whether an appropriate BIS licence is available. Whether the relevant products are covered by the licence. Whether the manufacturing and testing arrangements meet the applicable requirements. Whether any existing stock qualifies for transitional treatment. The main issue is not simply completing an application. The business must understand the requirement that applies to its actual manufactured products. Aluminium Beverage Can Manufacturers For manufacturers covered by IS 14407:2023, the revised dates allow additional preparation time. Businesses that are not yet certified can use this time to review technical requirements, assess factory readiness and plan the applicable certification process. Manufacturers with several can varieties should also check which products would fall within the proposed BIS licence scope. Waiting until the implementation date to begin reviewing certification requirements may create avoidable operational difficulties. Micro and Small Enterprises The treatment of MSMEs is particularly important because the two standards now have different schedules. Small and micro enterprises covered by IS 1660:2024 do not have separate future implementation dates under the Second Order. For aluminium beverage cans, the dates remain staggered. Correct enterprise classification is therefore necessary before deciding the relevant compliance position. Importers and Supply Chain Businesses Importers should review the products they source and the certification arrangements of their suppliers. They should also distinguish between commercial imports and the specific exemptions for filled goods, existing stock and qualifying R&D articles. Businesses involved in distribution and retail should pay attention to the restrictions under the BIS Act once compulsory requirements become applicable. What About Compliance Costs? Certification-related expenditure may involve application charges, testing, factory arrangements and other costs under the relevant BIS framework. The October Order does not specify one fixed certification fee or a total compliance cost for affected manufacturers. The amount depends on the applicable certification procedure and the business's actual requirements. Manufacturers should obtain a cost assessment relevant to their product and application rather than relying on a general figure. What Are the Penalties for Non-Compliance With the QCO? Clause 3 of the Second Order appoints BIS as the certification and enforcement authority. Clause 4 states that contraventions of the Order are punishable under the BIS Act, 2016. The Order does not prescribe a separate schedule of fines. The applicable statutory provisions must therefore be examined. Penalties Under Section 29 of the BIS Act, 2016 Section 29(3) deals with contraventions of Section 17. The penalties provided under this provision include the following. Contravention Relevant statutory punishment First contravention of Section 17 Fine of not less than ₹2 lakh, subject to the statutory provisions Second or subsequent contravention Fine of not less than ₹5 lakh, subject to the statutory provisions Value-linked fine May extend up to ten times the value of the relevant goods or articles Imprisonment May extend up to two years Combined punishment Imprisonment and fine may both apply These figures describe statutory penalties. They are not automatic charges imposed whenever a certification application is delayed. The exact consequences depend on the established contravention and the applicable legal process. Can BIS Inspect or Seize Products? Sections 27 and 28 of the BIS Act provide relevant inspection, search and seizure powers, subject to statutory requirements. These provisions allow authorised officers to examine matters involving suspected non-compliance in the circumstances specified by law. Businesses should also recognise that non-compliant stock can lead to wider operational problems, including difficulties with sale and distribution. Those commercial consequences are distinct from penalties expressly imposed under the Act. What Should Manufacturers and Importers Do Next? The best starting point is a product-wise review. Businesses should avoid assuming that the same deadline applies to every utensil or beverage container they manufacture. Step 1: Check the Product Category Start with the actual goods manufactured or imported. Determine whether the notified Indian Standard applies. Where the product scope is unclear, obtain clarification rather than relying only on the broad title of the Quality Control Order. Step 2: Identify the Correct Deadline After confirming the product category, check the relevant implementation date. For IS 14407:2023, the enterprise classification also affects the date. Step 3: Review Existing BIS Certification Check whether the manufacturer has a valid and appropriate BIS licence. Where the business already holds a licence, confirm that it covers the relevant products. Step 4: Examine Product Testing and Quality Requirements Review the applicable Indian Standard and BIS product manual. Identify any gap in manufacturing controls, testing arrangements or product documentation. Step 5: Assess Existing Stock Check whether any stock was manufactured or imported before the applicable implementation date. If the business intends to rely on transitional relief, examine the prescribed conditions and declaration requirements. Step 6: Check the Available Exemptions Businesses dealing with exports, filled imported goods or R&D imports should examine the specific exemption that may apply. The exemption conditions should be assessed separately from the general certification requirement. Step 7: Review Documentation Maintain the records expressly required by the applicable provisions. Also preserve supporting evidence that may be useful during certification, stock verification or compliance review. Step 8: Follow Official BIS Updates Monitor relevant amendments to the Indian Standards, QCO clarifications and certification guidance. Changes to the applicable standard may affect compliance even after a licence has been issued. BIS Compliance Checklist Compliance point Review required Product classification Identify the applicable notified Indian Standard Enterprise classification Confirm whether the general, small or micro category applies Implementation date Check the relevant deadline under the Second Order BIS licence Verify certification status and approved scope Technical requirements Review applicable standard and product manual Existing inventory Assess eligibility for stock relief Declaration Check whether a CA-certified declaration is required Import exemption Confirm the conditions for any claimed exemption R&D imports Check the annual limit, records and disposal conditions Latest amendments Review subsequent BIS and DPIIT notifications This checklist supports internal compliance planning. It does not replace the legal requirements or any official BIS application instructions. How Corpseed Can Help With BIS Certification The Second Quality Control Order makes correct product classification and certification planning particularly important for aluminium utensil and beverage can manufacturers. Businesses may need assistance in identifying the applicable standard, checking certification requirements and preparing relevant documentation. Corpseed offers BIS Certification Services and related product compliance assistance for manufacturers and businesses dealing with regulated products. 1. BIS Applicability Assessment The first task is to identify whether the product falls within a compulsory certification requirement. This helps businesses determine which standard, certification route and implementation date need to be examined. 2. BIS ISI Certification Assistance For products subject to Scheme-I requirements, Corpseed can assist businesses with understanding the applicable BIS ISI Certification process. This may include guidance on certification requirements and relevant application documentation. 3. BIS Licence Application Support Manufacturers preparing for a BIS licence may require assistance in organising product information, understanding procedural requirements and preparing the application. The final licence decision remains with BIS. 4. Product Testing and Compliance Guidance Businesses can seek guidance on the relevant Indian Standards and conformity assessment requirements. Where product testing is required, the applicable BIS procedures and laboratory requirements must be followed. 5. BIS Certification for Foreign Manufacturers Overseas manufacturers supplying products to India may need to examine the relevant FMCS requirements. Corpseed provides assistance relating to BIS FMCS Registration, where applicable. 6. Compliance Review for Manufacturers and Importers Companies may also find help for the following aspects during evaluation: Product applicability Implementation deadlines Certification Applicable exemptions Supporting documents Regulatory compliance planning Need help with BIS Certification Services for aluminium utensils or beverage cans? Contact Corpseed for assistance in understanding the applicable certification requirements and preparing the relevant compliance documentation. Key Takeaways Cookware, Utensils and Cans for Foods and Beverages (Quality Control) Second Order, 2026 has revised the compliance period of the BIS notification for two categories of products made of aluminum. Wrought aluminum utensils covered under IS 1660:2024 shall apply from the date of notification, even to micro and small units. Aluminium beverage cans covered by IS 14407:2023 have later implementation dates: 1 April 2027 for the general category, 1 July 2027 for small enterprises and 1 October 2027 for micro enterprises. The Order also retains conditional exemptions for domestically manufactured export goods, qualifying existing stock, filled imported goods and limited R&D imports. Manufacturers and importers should review their product classification, BIS licence status and applicable implementation date before making supply or certification decisions.

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Summary: A coal mine may hold a valid mining lease and have an approved mining plan, but what happens if the operations carried out at the site do not match that plan? Who has the authority to identify the violation, how much time can be given to correct it, and under what circumstances can mining operations be stopped? These are some of the issues addressed in the Draft Colliery Control (Amendment) Rules, 2026, published by the Ministry of Coal through notification G.S.R. 865(E), dated 1 October 2026. The Ministry has proposed changes to the Colliery Control Rules, 2004, dealing with the powers of Coal Controller Organisation officials, compliance with approved mining plans, annual declarations by mining project proponents and procedures for suspending mining operations. The draft also introduces definitions concerning mine closure and mine closure plans. Another proposal gives affected persons a route to seek revision of certain orders issued under the proposed mining-plan enforcement provisions. For businesses engaged in coal and lignite mining, these proposals deserve attention because they concern how mining operations may be examined and how non-compliance may be addressed. However, the notification is still a draft. The proposed amendments should not be treated as newly enforceable rules until they are finalised and brought into force. Existing mining and environmental obligations continue to apply independently. Draft Notification at a Glance Particulars Details Issuing authority Ministry of Coal, Government of India Notification number G.S.R. 865(E) Notification date 1 October 2026 Gazette issue date 7 October 2026 Gazette identification number CG-DL-E-13102026-277095 Proposed amendment Colliery Control (Amendment) Rules, 2026 Existing rules Colliery Control Rules, 2004 Governing legislation Mines and Minerals (Development and Regulation) Act, 1957 Relevant section Section 18 Sector concerned Coal and lignite mining Main proposals Officer jurisdiction, mining-plan compliance, mine closure definitions, annual declarations, suspension and revision Consultation period 30 days from the date Gazette copies are made available to the public Proposed commencement Publication of the final rules in the Official Gazette Legal status Draft amendment published for objections and suggestions The changes are relevant not only to companies operating coal mines but also to the people responsible for maintaining mining records, supervising operations and confirming compliance at the company level. The notification seeks public comments before the Central Government takes the proposed amendments forward. Understanding the Regulatory Framework for Coal Mining in India What Are the Colliery Control Rules, 2004? Coal mining in India is governed by several laws, regulatory approvals and operational conditions. The Colliery Control Rules, 2004, are part of this framework. The rules address specified matters concerning coal mining activities and colliery control. They operate alongside the applicable provisions of the Mines and Minerals (Development and Regulation) Act, 1957, and other relevant legislation. A mining business must therefore distinguish between the requirements arising under its mining lease, the conditions of an approved mining plan and the obligations established under other applicable laws. The 2026 draft does not replace all these requirements. It proposes additional provisions within the existing Colliery Control Rules. How Does the MMDR Act, 1957, Relate to These Rules? The Mines and Minerals (Development and Regulation) Act, 1957, commonly called the MMDR Act, provides the broader legal framework for regulating the development of minerals and mining activities in India. The Ministry of Coal has proposed the amendments through the rule-making powers referred to in Section 18 of the Act. This connection matters because the proposed rules must be understood within the existing statutory framework. They are not a separate mining law created independently of the MMDR Act. What Is the Role of the Coal Controller Organisation? The Coal Controller Organisation has regulatory responsibilities connected with the coal sector. The proposed amendments address its internal administrative structure more directly by defining several officer positions and introducing provisions concerning their jurisdiction and authority. Under the draft, the Coal Controller would be able to prescribe the territorial jurisdiction, powers and functions of subordinate officers. Another proposal identifies who may determine compliance with an approved mining plan. For businesses, this is important because the designation of a government official and the authority granted to that official are not always the same thing. What Earlier Amendments Are Relevant? The draft Gazette refers to earlier notifications amending the Colliery Control Rules, 2004. Notification Date G.S.R. 540(E) 25 August 2004 G.S.R. 546(E) 9 August 2021 G.S.R. 917(E) 23 December 2025 G.S.R. 710(E) 6 August 2026 G.S.R. 797(E) 9 September 2026 These references form part of the regulatory history provided in the notification. The exact earlier legal position must be established from the applicable amended rules before describing any particular requirement as completely new or replacing an existing obligation. Why Has the Ministry of Coal Proposed These Amendments? The draft does not provide a separate, detailed explanation of every policy objective. However, the proposed provisions show that the Ministry is addressing several practical issues connected with regulatory responsibility and the monitoring of mining operations. Clearer Powers for Coal Controller Organisation Officials The proposed amendments identify officer designations and provide a framework for assigning jurisdiction. This may reduce uncertainty about which authorised officer can deal with a particular mining-plan compliance matter. The practical effect will depend on the functions and territorial limits assigned by the Coal Controller. A Defined Procedure for Mining-Plan Violations A major part of the draft deals with operations that do not follow an approved mining plan. Instead of merely referring to non-compliance, proposed Rule 9B describes how the competent authority may inform a colliery owner about a violation, require rectification and consider suspension if the matter remains unresolved. It also deals separately with temporary suspension in specified circumstances involving safety or environmental concerns. Annual Confirmation of Compliance The proposed annual declaration would require the responsible company board or colliery owner to confirm that mining operations have followed the approved mining plan and applicable laws. For incorporated project proponents, this places the proposed declaration at the level of the company's board rather than treating it solely as a routine operational statement by mine personnel. Greater Recognition of Mine Closure The draft proposes definitions of mine closure and mine closure plans. These definitions refer to environmental restoration, the protection of local communities, land reclamation and long-term impacts. Their inclusion may provide clearer terminology within the Colliery Control Rules, although the definitions do not independently create a new mine closure approval procedure. A Procedure for Challenging Certain Orders The proposed revision provisions identify where an affected person can challenge specified orders made under Rule 9B. They also cover the period for filing an application, the application fee and what happens to the challenged order while the revision is pending. Taken together, these changes suggest an effort to specify how mining-plan compliance would be supervised and how regulatory decisions could be reviewed. This is an interpretation of the draft provisions, not a separate statement of objectives issued by the Ministry. Who Will Be Affected by the Proposed Colliery Control Amendments? The draft has particular relevance for coal and lignite mining operations. However, the responsibilities differ according to the role of the business or individual concerned. Coal and Lignite Mining Leaseholders Mining leaseholders are directly relevant to proposed Rule 9B. The provision states that a holder of a mining lease must not commence or carry out mining operations in an area except in accordance with the mining plan. For a leaseholder, this makes the approved plan an important reference for determining whether operations are being conducted as permitted. Colliery Owners The proposed enforcement mechanism refers specifically to colliery owners. Where mining activities are not carried out according to the mining plan, the competent authority would inform the colliery owner of the violation and direct its correction. A colliery owner may also face a show-cause notice and possible suspension proceedings under the conditions stated in the draft. Incorporated Mining Project Proponents Companies incorporated under the applicable company law are relevant to the proposed annual declaration requirement. Under proposed Rule 9C, the company board of the project proponent would submit an annual declaration to the Coal Controller. The declaration would concern conformity with the approved mining plan and applicable laws. Project Proponents That Are Not Incorporated Companies Where the project proponent is not an incorporated company, the proposed rule places responsibility for the annual declaration on the colliery owner. This distinction should be retained when explaining the proposal. It would be inaccurate to say that every mining business must submit the declaration through a company board. Coal Controller Organisation Officials The draft also concerns officials exercising regulatory functions, including: Deputy Coal Controller Regional Head Coal Superintendent Assistant Coal Superintendent Surveyor Their proposed roles are connected with jurisdiction, authorisation and regulatory functions. Stakeholder Applicability Table Stakeholder Main provision Possible effect Coal mining leaseholders Proposed Rule 9B Mining activities to follow the approved mining plan Lignite mining project proponents Proposed Rules 9B and 9C, as applicable Mining-plan compliance and annual declaration Colliery owners Proposed Rules 9B and 9C Rectification directions, possible suspension and declaration responsibilities Incorporated project proponents Proposed Rule 9C Annual declaration by the company board Coal Controller Organisation officials Proposed Rules 2A and 9A Jurisdiction and competent-authority functions Persons affected by specified regulatory orders Proposed Rule 17 Revision application mechanism Mining contractors, consultants and other service providers may be affected indirectly through their commercial arrangements, but the draft should not be presented as imposing identical direct obligations on all such parties. What Are the Major Amendments Proposed Under the Colliery Control Rules, 2004? The draft contains several different kinds of changes. Some define the positions of government officers, while others introduce procedures directly connected with mining activities. Understanding these differences is important because not every amendment creates a new obligation for a mining company. New Definitions for Coal Controller Organisation Officials The draft proposes inserting definitions into Rule 2(1) of the principal rules. Officer or designation What the draft proposes Assistant Coal Superintendent Grade-I A person appointed by the Central Government under the relevant 2025 recruitment rules for the Group A post Assistant Coal Superintendent Grade-II A person appointed under the corresponding 2025 Group A recruitment rules Coal Superintendent A person appointed under the Coal Superintendent Recruitment Rules, 2025 Deputy Coal Controller A person appointed under the Deputy Coal Controller Recruitment Rules, 2025 Regional Head A Coal Superintendent or other eligible officer authorised in writing by the Coal Controller Surveyor A Survey Officer or Senior Mines Surveyor authorised in writing by the Coal Controller These definitions clarify the meaning of particular official designations for the purposes of the rules. They should not be interpreted as appointing specific individuals or automatically granting every listed officer all the powers of the Coal Controller. New Definition of Mine Closure The proposed definition describes mine closure as a comprehensive process carried out when mining activities are completed. It includes closing and securing the mine, protecting the surrounding environment and addressing the impacts of mining on local communities. The definition also refers to land reclamation and restoring the site to an acceptable condition. A mine closure process is therefore not limited to the removal of machinery or the physical closure of mine entrances. It may involve several connected environmental, physical and social considerations. New Definition of Mine Closure Plan The draft describes a mine closure plan as a formal document containing financial provisions and activities intended to address the long-term impacts of mining. It specifically refers to measures beginning at an early stage and continuing throughout the mining cycle. The impacts covered in the definition include: Environmental impacts. Physical impacts. Social impacts. Economic impacts. Restoration of the affected landform. The draft does not specify a new mine closure application form, approval fee or submission deadline through this definition. Definition of Mining Plan A mining plan is described in the draft as a duly approved plan for developing coal deposits in the concerned area. The definition also refers to the meaning given under the MMDR Act, 1957. The importance of this proposal becomes clearer when read with proposed Rule 9B, which directly connects mining operations with the approved mining plan. Introduction of New Procedural Rules The draft proposes the following additional provisions. Proposed rule Subject Main purpose Rule 2A Jurisdiction of officers Authority to determine functions and territorial jurisdiction Rule 9A Competent authority Identification of officials who may determine mining-plan compliance Rule 9B Mining operations under a mining lease Procedures for addressing non-conformity with mining plans Rule 9C Annual declaration Annual confirmation of compliance Rule 17 Revision Review of specified orders under Rule 9B The proposed Rules 9B, 9C and 17 are especially important from a business compliance perspective because they concern operations, formal declarations and regulatory proceedings. How Will the Powers and Jurisdiction of Coal Controller Officers Change? A mining company dealing with a regulatory issue needs to know which officer is authorised to act and whether that officer has jurisdiction over the relevant mining area. The proposed Rule 2A addresses this administrative question. Powers of the Coal Controller Under Proposed Rule 2A Under the draft, the Coal Controller may prescribe the powers and functions of subordinate officers, together with the limits of their territorial jurisdiction. Territorial jurisdiction means the geographical area within which an officer is authorised to perform specified official functions. The provision identifies several categories of officers operating under the Coal Controller. Which Officers Would Be Covered? The draft lists the following subordinate officers: Deputy Coal Controller. Regional Head. Coal Superintendent. Assistant Coal Superintendent. Surveyor. Their inclusion does not mean that all these officials would exercise identical powers. The specific allocation of functions and jurisdiction would depend on the arrangements made under the proposed rule. Why Is Written Authorisation Important? Certain provisions refer expressly to written authorisation. For example, a Regional Head must meet the relevant rank requirement and be duly authorised in writing by the Coal Controller. Similarly, proposed Rule 9A recognises an officer of the Coal Controller Organisation as a competent authority where the Coal Controller has authorised that officer in writing. For mining businesses, the distinction matters when examining the legal basis of a regulatory direction. The relevant questions may include whether the officer has been authorised for the particular function and whether the matter falls within that officer's jurisdiction. What Should Businesses Understand About the Change? The proposed provisions may make regulatory responsibilities more clearly identifiable. However, the draft does not establish a new registration process for dealing with Coal Controller Organisation officers. Nor does it state that mining companies must appoint a separate compliance officer simply because Rule 2A is proposed. An appropriate business response would be to understand the final allocation of powers once notified and maintain clear communication with the relevant authority. What Are the Proposed Mining Plan Compliance Requirements? The approved mining plan is central to the proposed enforcement framework. Proposed Rules 9A and 9B explain who may assess mining-plan compliance and what action may follow when operations are not carried out according to the plan. Proposed Rule 9A: Who Can Determine Mining Plan Compliance? The draft identifies the Coal Controller or an authorised officer of the Coal Controller Organisation as the competent authority for determining compliance with a mining plan for the stated purposes. The officer must be authorised in writing by the Coal Controller. The draft also places a limit on this authority. Matters specifically governed by the Director General of Mines Safety or other statutory regulatory bodies are excluded. This means the proposed provision should not be interpreted as transferring every aspect of mine safety, environmental regulation or mining administration to the Coal Controller Organisation. Proposed Rule 9B: Mining Operations Must Follow the Mining Plan Proposed Rule 9B(1) deals with mining operations under a mining lease. The provision states that a leaseholder must not commence or conduct mining operations in any area except in accordance with the mining plan. The main concern is whether the mining activities being carried out correspond to the approved plan. For mining companies, it is important to distinguish between holding the relevant lease and operating in accordance with the plan. A mining lease alone should not be treated as permission to undertake activities outside the applicable approved mining plan. What Happens if Operations Do Not Match the Mining Plan? Under proposed Rule 9B(2), the competent authority would inform the colliery owner about the violation and direct the owner to rectify it. The authority would specify the period within which the violation must be corrected. The draft does not provide one universal rectification period. Therefore, businesses should not assume that every violation would carry the same deadline. How Should Mining Companies Assess Their Existing Operations? Before the draft becomes final, businesses can use the opportunity to review their existing compliance position. An internal review may cover the following areas. Approved documentation Confirm that the business has access to its latest applicable approved mining plan and relevant approvals. Actual operational activities Review whether the mining operations being undertaken correspond to the plan. Changes and deviations Identify any material differences between the approved plan and actual activities, including whether necessary approvals for changes have been obtained. Regulatory correspondence Examine relevant directions, observations and communications received from competent authorities. Corrective measures Check whether previously identified issues have been resolved and whether supporting evidence is available. These are practical compliance review measures, not a new statutory checklist introduced under the draft. Mining regulatory compliance services may be useful where a business needs professional assistance with reviewing applicable requirements. However, any service provider's scope should be checked against the particular technical and legal work involved. Can Coal Mining Operations Be Suspended for Violating the Approved Mining Plan? The draft proposes a mechanism under which the competent authority may suspend all or part of mining operations when the conditions specified in Rule 9B are met. This is one of the most significant proposals for colliery owners because a suspension can affect the ability to continue mining activities. The draft provides two important situations: suspension following unresolved non-compliance and temporary suspension for specified safety or environmental reasons. Identification of a Mining Plan Violation The proposed process begins when the competent authority determines that mining activities are not being carried out in accordance with the mining plan. The authority would inform the colliery owner of the violation. This would be followed by a direction requiring the violation to be corrected within a specified period. Opportunity to Rectify the Violation The proposed rule allows the competent authority to direct rectification before proceeding with the ordinary show-cause mechanism. Rectification may require the business to address the operational issue identified by the authority. The precise corrective measures would depend on the violation and the direction issued. The draft does not prescribe one fixed set of corrective measures for every possible mining-plan violation. Issuance of a 15-Day Show-Cause Notice If the violation is not corrected within the specified period, the competent authority may issue a show-cause notice giving 15 days. The notice would ask the colliery owner to explain why mining operations should not be suspended. This is an important procedural stage because it provides the colliery owner an opportunity to respond before suspension under the ordinary process. When May the Competent Authority Suspend Operations? If no satisfactory reply is received within 15 days from receipt of the show-cause notice, the competent authority may suspend all or any of the mining operations. The draft also allows the competent authority to permit activities necessary to bring the mining conditions into conformity with the plan. This means a suspension need not necessarily cover every activity at the site in the same way. Its scope would depend on the authority's order and the conditions of the proposed rule. Temporary Suspension for Public Safety or Environmental Protection Proposed Rule 9B(4) addresses a different situation. Where the competent authority considers temporary suspension necessary in the interests of public safety, environmental protection or preventing imminent or irreparable harm, it may temporarily suspend all or part of the mining operations. The authority must record the reasons in writing. This power may be exercised at the time of intimation or later, subject to the provision. The ordinary 15-day show-cause procedure should not be represented as a mandatory waiting period before every temporary suspension under Rule 9B(4). The draft recognises circumstances where the authority may consider immediate protective action necessary. Can Mining Operations Resume After Suspension? Proposed Rule 9B(5) deals with revocation of suspension. The competent authority may revoke the suspension for reasons recorded in writing, including where: The violation has been rectified. The directions issued by the authority have been complied with. Another reason is considered appropriate by the authority in the interest of justice. However, correction of a violation should not be described as resulting in automatic cancellation of the suspension order. A decision by the competent authority is relevant under the proposed provision. Proposed Suspension Procedure at a Glance Stage What the draft provides Business significance Violation identified Competent authority determines non-conformity with the mining plan The issue must be examined against the approved plan Intimation issued Colliery owner is informed Business becomes aware of the identified violation Rectification directed Authority specifies a correction period Corrective action must follow the direction Violation remains unresolved Authority may issue a 15-day show-cause notice Opportunity to respond No satisfactory reply Authority may suspend all or part of operations Possible interruption of mining activities Serious safety or environmental concern Temporary suspension may be ordered under Rule 9B(4) Ordinary show-cause sequence need not precede action Suspension reconsidered Authority may revoke it for recorded reasons Operations remain subject to the applicable order What Are the Business Risks of Suspension? The draft does not provide a fixed monetary penalty for every mining-plan violation under Rule 9B. Instead, the proposed procedure focuses on directions for rectification and possible suspension of operations. For a mining business, the commercial consequences of suspension may include interrupted extraction, changes to production schedules and difficulties meeting existing supply commitments. Additional technical work may also be needed to correct the issue identified. The actual impact would depend on the mine, the violation, the extent of suspension and the terms of the regulatory order. Businesses should therefore avoid treating a suspension notice as a routine administrative communication. At the same time, it would be inaccurate to claim that every mining-plan deviation automatically leads to suspension. What Annual Declaration Is Proposed for Coal and Lignite Mines? The draft proposes Rule 9C, introducing an annual declaration confirming compliance with the approved mining plan and applicable laws. Unlike provisions dealing with inspections or operational directions, this proposal focuses on a formal compliance statement. Who Must Submit the Annual Declaration? The proposed rule distinguishes between incorporated and non-incorporated project proponents. Where the project proponent is an incorporated company, its company board would submit the declaration. Where the project proponent is not an incorporated company, responsibility would rest with the colliery owner. This distinction is important because the draft does not simply require every mine manager to submit the same declaration. What Information Must the Declaration Confirm? The declaration would confirm that all mining operations for the coal or lignite mine were carried out according to: The approved mining plan. All applicable laws. The second requirement is wider than confirmation of mining-plan conformity alone. However, the draft does not prescribe a detailed form listing every statute or approval that must be addressed individually. To Whom Must the Declaration Be Submitted? The proposed Rule 9C identifies the Coal Controller as the receiving authority. Is There an Annual Filing Deadline? The draft requires annual submission but does not expressly specify: An exact annual filing date. A particular filing month. An online portal. A prescribed declaration form. A fee for submitting the declaration. These details should not be invented or inferred from unrelated filing procedures. What Does the Proposal Mean for Company Boards? For an incorporated project proponent, the proposed declaration could make internal compliance reporting particularly important. Before a board makes a statement confirming mining-plan and legal compliance, it may need reliable information from mine management and other responsible personnel. Businesses can consider whether their internal systems provide sufficient information to support such confirmation. This is a practical governance consideration. The draft does not expressly prescribe a separate board audit process or independent third-party certification. Proposed Declaration Responsibility Project proponent Responsible person or body Declaration concerns Incorporated company Company board Approved mining plan and applicable laws Non-incorporated project proponent Colliery owner Approved mining plan and applicable laws Receiving authority Coal Controller Annual submission For businesses using environmental compliance services, this proposed obligation may be relevant when reviewing the reliability of existing compliance records. Nevertheless, the draft should not be interpreted as requiring companies to engage an external consultant to submit the declaration. What Is a Mine Closure Plan Under the Proposed Colliery Control Amendments? A mine does not stop having environmental responsibilities simply because extraction has ended. The condition in which the land is left, how the site is secured and how the surrounding area is affected are important considerations in mine closure. The 2026 draft proposes definitions of mine closure and mine closure plan to recognise these matters within the Colliery Control Rules, 2004. Meaning of Mine Closure Under the proposed definition, mine closure covers the process of closing and securing a mine after completion of mining activities. The definition refers to actions intended to: Protect the environment. Safeguard the mining site. Address impacts on local communities. Reduce adverse social consequences. Reclaim land affected by mining. Restore the site to an acceptable condition. The exact measures required for a particular mine would depend on its applicable approvals, plans and governing laws. What Is a Mine Closure Plan? The draft describes a mine closure plan as a formal document containing financial provisions and activities intended to minimise adverse long-term effects of mining. It recognises that closure planning should begin at an early stage and continue through the mining cycle. The proposed definition addresses four broad areas. Environmental considerations These concern the long-term condition of the environment affected by mining activities. Physical considerations These include the condition of the mine and the restoration of the landform. Social considerations These concern impacts associated with local communities and the surrounding area. Economic considerations These relate to the longer-term economic consequences addressed through closure planning. What Is the Importance of Land Reclamation? Land reclamation is one of the activities expressly recognised in the proposed mine closure definition. Its purpose is to address the condition of land affected by mining and support its restoration to an acceptable level. However, what qualifies as an acceptable condition for an individual project must be determined from the applicable legal and technical requirements. The draft definition does not specify universal numerical restoration standards or separate technical parameters for every coal mine. What Financial Provisions Are Mentioned? The proposed definition of a mine closure plan refers to financial provisions covering relevant closure activities. This recognises that restoration and related measures may need financial planning during the mining cycle. The draft definition does not itself state a new universal deposit amount, escrow percentage or financial guarantee for all mining businesses. Any existing financial obligations must be checked under the applicable regulatory framework. Does the Draft Make Mine Closure Plan Approval Mandatory for the First Time? The proposed definitions should not be interpreted as introducing an entirely new approval process. Existing requirements relating to mine closure may apply under other laws, approvals or mining-plan conditions. The 2026 draft adds terminology to the Colliery Control Rules. Whether a company must prepare, revise or obtain approval for a closure plan must be determined from the relevant operative requirements. Mine Closure Considerations Area What the proposed definition addresses Practical relevance Environmental protection Long-term environmental impacts Reviewing applicable restoration responsibilities Land reclamation Restoration of land affected by mining Assessing closure activities against existing approvals Site security Closing and securing the mine Understanding site-specific safety and closure conditions Local communities Social impacts of closure Considering applicable community-related responsibilities Financial provisions Funding for closure-related activities Reviewing existing project-specific financial arrangements Long-term planning Activities throughout the mining cycle Keeping closure documentation aligned with applicable requirements Businesses that require support with environmental studies or applicable project approvals may consider environmental consultancy services. Such consultancy should not be confused with a new statutory approval created by the draft. How Can a Mining Company Challenge an Order Under the Proposed Rules? A mining company may disagree with an order issued under the proposed mining-plan enforcement provisions. The draft addresses this through a revision mechanism under proposed Rule 17. The procedure identifies which authority can review an order, when an application can be filed and whether the original order must continue to be followed while the application is pending. Which Orders Are Covered Under Proposed Rule 17? The proposed revision procedure concerns orders made under Rule 9B. It is therefore connected with the powers dealing with mining operations under a mining lease. It should not be described as a general appeal system for every mining-related order. Who Can Apply for Revision? The draft refers to any person aggrieved by an order made under the relevant provisions of Rule 9B. The application must be made before the appropriate authority, depending on which officer issued the original order. Which Authority Will Hear the Application? The proposed procedure establishes two routes. Where the Deputy Coal Controller issued the original order The affected person may apply to the Coal Controller for revision. Where an officer subordinate to the Deputy Coal Controller issued the order The application may be made to the Deputy Coal Controller. An important restriction is also included. The draft does not allow a further revision before the Coal Controller against a decision made by the Deputy Coal Controller while exercising revision powers under Rule 17(2). What Is the Time Limit for Filing a Revision? The ordinary period for filing an application would be 30 days from communication of the relevant order. This starting point matters. The period is linked to communication of the order to the affected person rather than simply the date printed on the order. What Happens if the Application Is Filed After 30 Days? The draft allows a delayed application to be considered where the applicant satisfies the relevant authority that there was sufficient cause for not filing within the ordinary period. Late acceptance is therefore conditional. Businesses should not assume that applications can be filed at any time without providing reasons for the delay. What Is the Proposed Revision Application Fee? The draft specifies a fee of ₹10,000 for every revision application submitted under Rule 17. It provides two payment methods. Bank draft The application may be accompanied by a bank draft drawn on a scheduled bank in favour of the Pay and Accounts Officer, Coal Controller Organisation, payable at New Delhi. Bank transfer The fee may alternatively be paid to the designated bank account of the Coal Controller Organisation. This is a proposed fee under the draft. It should not be described as a newly operative charge unless the relevant amendment is finalised. Does a Revision Application Automatically Stop the Original Order? No. This is an important part of the proposed procedure. Under Rule 17(4), the order being challenged must generally continue to be complied with while the revision is pending. However, the appropriate revisional authority may suspend the operation of the challenged order during the proceedings. Filing a revision application and obtaining a stay of the order are therefore two separate matters. What Decisions Can the Revisional Authority Make? After providing the parties a reasonable opportunity to be heard, the Coal Controller or Deputy Coal Controller, as applicable, may: Confirm the original order. Modify the original order. Set aside the original order. The outcome would depend on the circumstances and the authority's decision. Proposed Revision Procedure at a Glance Particular Proposed provision Orders covered Orders under Rule 9B Order issued by Deputy Coal Controller Revision before Coal Controller Order issued by subordinate officer Revision before Deputy Coal Controller Ordinary filing period 30 days from communication of the order Late filing May be allowed on sufficient cause Application fee ₹10,000 Payment Bank draft or designated bank transfer Automatic stay Not provided Stay during revision May be granted by the revisional authority Possible outcome Confirmation, modification or setting aside of order For colliery owners, the proposed revision mechanism offers a defined route for seeking reconsideration of specified orders. It does not mean that an affected business can disregard an operative order while its application is under consideration. What Is the Deadline for Submitting Objections and Suggestions? The Ministry of Coal has invited comments on the Draft Colliery Control (Amendment) Rules, 2026, before the proposals are considered further. This gives affected stakeholders an opportunity to explain whether particular provisions need clarification or modification. Who Can Submit Comments? The notification invites objections and suggestions from persons likely to be affected. Relevant stakeholders may include coal and lignite mining businesses, colliery owners, mining project proponents and other persons concerned with the proposed rules. What Is the Public Consultation Period? The notification provides a period of 30 days from the date on which copies of the Gazette containing the proposed rules are made available to the public. The Gazette bears an issue date of 7 October 2026, while its publication identifier and digital details show 13 October 2026. The exact public-availability date needs to be confirmed before calculating and publishing the final deadline. Businesses should check the applicable official notice rather than relying on a deadline calculated solely from the notification date. Where Can Comments Be Sent? The notification specifies the following address: Under Secretary (P&S-I Section) Ministry of Coal, Government of India Room No. 4618, Zone 6, Fourth Floor GPOA-3, Africa Avenue Netaji Nagar, New Delhi – 110023 The envelope should identify the submission as comments or suggestions on the draft amendment to the Colliery Control Rules, 2004. What Issues Can Mining Companies Raise? Businesses may consider submitting specific comments concerning: Regulatory authority Whether the proposed allocation of powers is sufficiently clear. Mining-plan compliance Whether the procedures for assessing conformity with approved plans require clarification. Rectification periods Whether additional procedural guidance is needed on the time allowed to correct different violations. Suspension powers Whether the conditions for suspension and restoration of operations are clearly described. Annual declarations Whether further details should be provided about the declaration format, submission date and procedure. Revision mechanism Whether the application procedure and accompanying requirements are clear enough for affected persons. These are suggested areas for stakeholder comments, not a compulsory checklist issued by the Ministry. What Happens After the Public Consultation Period Ends? The completion of the consultation period does not mean that the draft automatically becomes law. The Gazette states that objections and suggestions received during the specified period will be considered by the Central Government. After considering the comments, the Government may decide how to proceed with the proposed amendments. Will the Final Rules Be the Same as the Draft? Not necessarily. A consultation process allows proposed provisions to be considered before finalisation. The final notified rules may retain, modify or omit particular draft provisions. Businesses should therefore rely on the final Gazette text when determining any new compliance requirements. When Would the Rules Come Into Force? Draft Rule 1 proposes that the amendment rules would come into force on the date of their publication in the Official Gazette. This commencement provision is itself part of the draft. The actual commencement position must be checked against the final notified amendment, if issued. Is There a Separate Transition Period? The reviewed draft does not expressly provide a general transition period following final commencement. However, this does not mean a final amendment cannot contain additional commencement or transitional provisions. The final version must be examined before businesses make decisions based on an assumed implementation schedule. What Should Companies Monitor? Mining businesses should look for: Publication of the final amendment. Any changes to proposed Rule 9B. Clarifications concerning annual declarations. The final revision procedure and fee. Commencement provisions. Any official instructions concerning implementation. This is particularly important for companies responsible for multiple mines or operations located in different areas. How Will the Proposed Amendments Affect Coal Mining Businesses? The proposed amendments could influence operational planning, regulatory reporting and the management of mining-plan compliance. The actual effect would depend on the final wording and the circumstances of each business. Impact on Mining Leaseholders For leaseholders, conformity with the approved mining plan is the central issue. The proposed Rule 9B provides a defined procedure for responding to deviations from that plan. A leaseholder should therefore understand which plan is applicable and whether current operations follow it. Where changes are necessary, the company must determine the approval requirements under existing applicable laws. Impact on Colliery Owners Colliery owners may be directly involved in responding to rectification directions and show-cause notices. This could make timely examination of regulatory communications important. Where a direction requires corrective action, the business would need to understand the violation identified and the period allowed for correction. The proposed procedure should not be confused with an automatic monetary penalty system. Impact on Company Boards The annual declaration proposal may create an additional formal responsibility for incorporated project proponents once the rule becomes operative. Company boards may need appropriate internal information concerning mining-plan compliance and applicable legal obligations. The draft does not mandate a particular new board committee or third-party audit for preparing the declaration. Impact on Environmental Compliance The draft recognises environmental protection in both the mine closure definitions and the proposed urgent suspension provisions. Mining projects may also have separate obligations concerning Environmental Clearance, pollution-control consents and other environmental approvals. Those obligations arise under the relevant environmental framework and must not be incorrectly presented as new requirements created by this draft. Businesses reviewing project-specific obligations may seek environmental compliance services where specialist documentation or regulatory assistance is needed. Impact on Production and Business Planning A suspension of mining operations may affect extraction schedules and commercial arrangements. The extent of any disruption would depend on the scope of the order and the corrective measures required. The draft does not provide a standard estimate of production losses, administrative costs or revenue impact. Impact on Regulatory Documentation The proposed annual declaration and enforcement procedures may make accurate compliance information particularly valuable. Mining businesses may consider whether their existing documents allow them to establish: Which mining plan is currently approved. Whether material operational deviations exist. Whether relevant regulatory directions have been addressed. Whether responsible personnel can verify compliance-related information. Whether company management receives sufficient information for formal declarations. These are recommended internal controls, not newly prescribed records under the draft. Business Impact Assessment Business function Potential implication Nature of impact Mining operations Greater attention to conformity with the mining plan Operational Compliance management Review of applicable plans and directions Administrative Company board Proposed annual compliance confirmation Governance Environmental management Review of existing closure and environmental obligations Environmental Legal department Understanding proposed show-cause and revision procedures Legal Finance Consideration of proposed revision fee and possible operational costs Financial Project management Coordination of compliance information Organisational The draft should not be described as imposing the same additional costs or administrative burden on every coal mining company. What Are the Risks of Non-Compliance Under the Proposed Rules? The most significant express enforcement consequence under proposed Rule 9B is the possibility of suspension of all or part of mining operations. The draft also provides for directions to rectify violations and a procedure for issuing a show-cause notice. Failure to Follow the Approved Mining Plan Where operations are not conducted according to the plan, the competent authority would be able to identify the violation and require rectification. Failure to correct the violation within the specified period may lead to further action under the proposed rule. Failure to Provide a Satisfactory Response If the competent authority issues a 15-day show-cause notice and receives no satisfactory response within the specified period, it may suspend mining operations. The proposed provision does not state that every show-cause notice must result in suspension. Serious Safety or Environmental Concerns Temporary suspension may also be considered under proposed Rule 9B(4) to address the specified public safety or environmental concerns. The relevant authority must record its reasons in writing. Non-Compliance With an Operative Order A business affected by an order must examine the applicable legal requirements and the terms of that order. Under proposed Rule 17, merely filing a revision application would not automatically suspend the challenged order. Are New Monetary Penalties Proposed? The reviewed draft does not prescribe a general monetary fine for every breach of the proposed mining-plan provisions. The ₹10,000 amount mentioned in Rule 17 is a proposed revision application fee, not a penalty for a mining-plan violation. Other legal consequences may exist under currently applicable legislation, but they must be identified from those laws rather than attributed to this draft without support. What Should Coal Mining Companies Do Before the Final Rules Are Published? The proposed amendments provide an opportunity for mining businesses to examine their existing compliance arrangements. There is no need to treat every proposed provision as immediately applicable. The appropriate approach is to comply with existing laws, understand the draft and prepare for changes that may eventually be notified. Step 1: Check the Approved Mining Plan The business should identify the latest applicable approved mining plan and confirm that the relevant operational personnel have access to it. Any identified differences between the plan and actual activities should be examined according to existing legal requirements. Step 2: Review Regulatory Correspondence Mining companies can review previous directions and communications received from relevant authorities. This may help identify issues that still require attention. Step 3: Examine Mine Closure Documentation Where mine closure plans or related financial arrangements are already required, businesses should check whether those documents remain consistent with applicable approvals and legal requirements. Step 4: Assess Internal Compliance Reporting Incorporated project proponents may consider how information concerning mining-plan compliance reaches company management and the board. This can help determine whether existing reporting arrangements would be sufficient to support the proposed annual declaration. Step 5: Understand the Proposed Enforcement Procedure The legal and operational teams should examine the draft provisions dealing with: Rectification directions. Show-cause notices. Suspension of mining operations. Temporary suspension for specified urgent reasons. Revocation of suspension. Revision applications. These provisions should be understood before the final rules are issued. Step 6: Consider Submitting Comments Affected businesses may wish to raise practical concerns or seek clarification on individual draft clauses. Comments should be based on the actual proposal and submitted through verified official channels within the consultation period. Step 7: Review the Final Amendment Before Implementing Changes The final notified text should be treated as the basis for determining any new binding obligations. Businesses should not create filing deadlines, approval processes or internal policies based solely on assumptions about the draft. Recommended Business Readiness Checklist Action Relevant team Purpose Recommended stage Review the approved mining plan Mining operations and technical team Confirm the applicable operating framework During draft review Check existing compliance issues Legal and compliance team Identify unresolved matters Ongoing Review environmental approvals Environmental team Confirm existing legal obligations Ongoing Examine closure documentation Mine planning and environmental team Review applicable closure responsibilities Before finalisation Assess annual declaration arrangements Compliance team and company management Examine availability of supporting information Preparation stage Review proposed suspension provisions Legal and operations teams Understand regulatory consequences During consultation Consider submitting comments Management and legal team Raise relevant issues Within verified consultation period Monitor the final Gazette Compliance team Identify binding changes After official publication How Can Professional Mining Compliance Services Help Businesses? Mining projects may be subject to several overlapping regulatory requirements. A project can involve mining-specific obligations, environmental approvals, operational conditions and continuing compliance responsibilities. Professional mining compliance services may help businesses identify which requirements apply, organise relevant documentation and understand regulatory procedures. However, the scope of assistance must match the actual service being provided. Reviewing Applicable Regulatory Requirements A regulatory review can help identify requirements connected with the company's approved mining plan and other applicable approvals. Such a review should distinguish operative obligations from proposed amendments. Assessing Environmental Compliance Coal and lignite mining projects may have environmental obligations that operate independently of the Colliery Control Rules. Environmental compliance services can be relevant when examining project-specific approvals, environmental conditions and documentation requirements. Understanding Environmental Clearance Requirements Where the applicable environmental framework requires Environmental Clearance, a business must follow the relevant approval provisions. Environmental clearance consultancy may assist with applicable documentation and procedures. The Draft Colliery Control (Amendment) Rules, 2026, do not themselves introduce a separate new Environmental Clearance requirement. Reviewing Environmental Impact Assessment Requirements An Environmental Impact Assessment may be relevant to a mining project where required under the applicable framework. Environmental Impact Assessment consultancy can support project-specific assessment and documentation requirements. It should not be described as a mandatory service under the proposed Colliery Control amendments. Supporting Environmental Audit and Documentation Reviews An environmental audit can help a business review its environmental performance and compliance position against relevant requirements. Whether a particular audit is mandatory depends on the applicable law, approval conditions or other legally binding requirements. Professional support does not replace responsibility for complying with the law. How Corpseed Can Help Coal and Lignite Mining Businesses For a mining company, regulatory compliance is not limited to a single approval or document. The applicable requirements may involve environmental clearances, project-specific conditions, statutory reporting and continuing compliance obligations. Corpseed provides environmental consultancy and regulatory support services that may be relevant to such projects. Environmental Clearance Consultancy Certain mining projects require Environmental Clearance under the applicable environmental regulatory framework. Corpseed's Environmental Clearance services can assist businesses with understanding the applicable approval process and related documentation. Environmental Impact Assessment Support An Environmental Impact Assessment examines the potential environmental consequences of a proposed project or expansion where the relevant framework requires such assessment. Corpseed provides Environmental Impact Assessment services for projects to which the service is applicable. Environmental Consultancy Services Mining businesses may require assistance in understanding environmental laws, project-specific obligations and compliance documentation. Corpseed's Environmental Consultancy services are relevant to these requirements. MOEF Compliance Support Mining projects may be subject to environmental conditions arising from approvals and other statutory requirements. Corpseed's MOEF Compliance services can assist businesses in understanding relevant environmental compliance requirements. Mining Regulatory Compliance Assistance For businesses reviewing the Draft Colliery Control (Amendment) Rules, 2026, the immediate priority is to understand the proposed provisions and compare them with existing applicable requirements. Where professional mining regulatory compliance services are required, the exact scope of support should be confirmed before engagement, particularly for specialised mining-plan approvals, enforcement proceedings or revision applications. Need assistance with environmental compliance for a mining project? Contact Corpseed to discuss applicable environmental clearances, documentation requirements and available regulatory support services. Key Takeaways The Ministry of Coal has proposed changes to the Colliery Control Rules, 2004, through G.S.R. 865(E), dated 1 October 2026. The draft addresses several matters that coal and lignite mining businesses should understand. Mining-plan compliance: Proposed Rule 9B deals with the requirement to conduct mining operations according to the mining plan and provides procedures for addressing violations. Regulatory authority: Proposed Rules 2A and 9A address officer jurisdiction and the authority to determine mining-plan compliance. Suspension of operations: The draft allows suspension under specified circumstances, including a separate temporary suspension provision concerning safety and environmental protection. Annual declaration: Proposed Rule 9C requires annual confirmation of mining-plan and legal compliance by the responsible company board or colliery owner. Mine closure: The draft introduces definitions of mine closure and mine closure plans without independently establishing a new closure approval procedure. Revision of orders: Proposed Rule 17 provides a procedure for challenging specified orders, with a 30-day ordinary filing period and a ₹10,000 proposed application fee. Current legal status: The notification remains a draft on the basis of the reviewed material. The proposed provisions should not be treated as final requirements without verifying their notification and commencement. For mining businesses, the immediate task is to understand the proposals, maintain compliance with existing applicable requirements and examine the final amendment when issued.

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Summary: Indian exporters dealing in prepared culture media need to check an important change in the country's export policy. On 12 October 2026, the Directorate General of Foreign Trade ( DGFT ) issued Notification No. 44/2026-27, amending the export conditions for prepared culture media classified under ITC(HS) Code 38210000. The amendment does not restrict the export of these products. Prepared culture media remain under the Free export policy. What has changed is the provision for issuing a Shipment Clearance Certificate and a Health Certificate when the importing country asks for such documentation. Under the amended condition, CAPEXIL is responsible for issuing a consignment-wise Shipment Clearance Certificate. A Health Certificate, wherever required or mandated by the importing country, is to be issued jointly by CAPEXIL and the Regional Animal Quarantine Officer identified in the notification. For manufacturers, merchant exporters and businesses supplying laboratories overseas, this means that export documentation needs closer attention when certification is required. The product's HS code, plant particulars, invoice information and shipment details must be accurate. For organizations who are looking for DGFT export compliances, it is very important to first analyze whether the modified conditions are applicable to their goods and destination country. The notification becomes operative instantly and no transition period is prescribed. DGFT Notification No. 44/2026-27 at a Glance The notification has been issued by the Department of Commerce under the Ministry of Commerce and Industry. It amends the export policy entry for prepared culture media in Chapter 38 of Schedule II of ITC(HS) 2022. The notification makes one point particularly clear: the export policy continues to be Free. Exporters should therefore not confuse the revised documentation arrangement with a restriction on the export of prepared culture media. What Is Prepared Culture Media Under ITC(HS) Code 38210000? Prepared culture media are specially prepared substances used in laboratories to grow, develop or maintain microorganisms and cells. They provide the nutrients and conditions needed for laboratory cultures. Depending on their formulation, culture media may be used for microorganisms, including viruses in suitable host-cell systems, or for plant, human and animal cells. Such products are used in microbiology, biotechnology, research and laboratory testing. Which Products Are Covered? The description in DGFT Notification No. 44/2026-27 covers: Prepared Culture Media for Development or Maintenance of Micro-organisms (including viruses and the like) or of Plant, Human or Animal Cells. For exporters, the important point is that the notification applies to products falling under the specified tariff classification. It does not automatically cover every product used in a laboratory. For instance, laboratory instruments, general chemicals and testing equipment should not be assumed to fall under the same HS code merely because they are used alongside culture media. Why Does the HS Code Matter for Exports? The ITC(HS) code helps identify the export policy applicable to a product. An incorrect classification may lead a business to examine the wrong policy conditions or prepare documents using inconsistent product descriptions. Manufacturers and exporters should pay attention to three areas: Product identity: The description should accurately reflect what is being exported. Export policy classification: The applicable DGFT entry should match the product. Shipment records: The HS code and product particulars should be consistent across relevant export documents. Correct classification is particularly useful when an importing country asks for a certificate tied to the product being shipped. Regulatory Framework Governing Prepared Culture Media Exports in India India's export policy is governed by the Foreign Trade (Development and Regulation) Act, 1992, along with the Foreign Trade Policy and product-specific import and export classifications. The prepared culture media amendment has been issued under this existing framework. It is a change to an export policy condition, not a separate law introducing a new licensing system. Foreign Trade (Development and Regulation) Act, 1992 The notification refers to Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. Section 3 empowers the Central Government to make provisions regulating imports and exports. Section 5 provides for the formulation and amendment of foreign trade policy. These provisions form part of the legal basis for revising product-specific trade conditions. Foreign Trade Policy 2023 The Foreign Trade Policy 2023 provides the broader policy framework for India's international trade. DGFT Notification No. 44/2026-27 refers specifically to paragraphs 1.02 and 2.01 of the policy, as amended from time to time. Exporters must consider the applicable foreign trade policy provisions alongside the particular export conditions attached to their products. Schedule II of ITC(HS) 2022 Schedule II contains export policy classifications for different goods. The products are identified through ITC(HS) codes, allowing businesses to determine whether a product is Free, Restricted, Prohibited or subject to other applicable policy conditions. Prepared culture media under Code 38210000 fall within Chapter 38. The notification retains their Free classification while revising the conditions concerning certificate issuance. What Has Changed Under DGFT Notification No. 44/2026-27? The amendment deals with the documents that may be needed when prepared culture media are exported to a country requiring shipment clearance or health certification. Previously, the policy entry shown in the notification classified the goods as Free. The revised entry continues that classification and adds a specific certificate-issuance arrangement. The change can be understood through three main points. 1. Prepared Culture Media Exports Remain Free The government has not placed prepared culture media under the Restricted or Prohibited export categories through this notification. Indian businesses can continue exporting covered goods under the Free policy classification, subject to other applicable requirements. No separate DGFT export licence requirement has been introduced by this amendment. 2. CAPEXIL Can Issue Shipment Clearance Certificates The revised condition provides for CAPEXIL to issue Shipment Clearance Certificates on a consignment-wise basis under the applicable importing-country requirement. The certificate identifies the exporter, manufacturing plant and relevant export shipment. Information such as the exporter's name, IEC number, plant approval number, product quantity, invoice particulars and destination must be included. 3. Health Certification Has a Specified Issuing Arrangement The notification also provides for a Health Certificate to be issued jointly by CAPEXIL and the Regional Animal Quarantine Officer, wherever required or mandated by the importing country. The certificate contains details concerning the product, HS code, packaging, origin, destination, vessel, departure date and relevant health requirements. The notification describes the exporter providing this Health Certificate to the buyer after shipment. The important distinction is that the notification provides a certificate-issuance arrangement; it does not say that both certificates must accompany every prepared culture media export. Old vs New Export Policy for Prepared Culture Media The change is easier to understand by comparing the earlier export policy entry with the amended position. The comparison shows that the underlying export classification has not changed. The new condition addresses how exporters may obtain documentation requested by an importing country. The notification does not establish that no certification requirements existed previously under other laws or destination-country regulations. It only confirms the amendment made to this particular DGFT export policy entry. Scope and Applicability of the Revised Export Policy The amended conditions apply to exports of prepared culture media falling under ITC(HS) Code 38210000. However, the certification arrangement becomes relevant depending on the requirements of the importing country. Manufacturers Exporting Prepared Culture Media Indian manufacturers supplying prepared culture media overseas should check whether their export destinations require shipment clearance or health certification. Where these documents are needed, accurate product and manufacturing plant particulars become especially important. A manufacturer should ensure that the details supplied for certification correspond with the actual goods being exported. Merchant Exporters Merchant exporters may purchase prepared culture media from manufacturers and sell them to international buyers. In these cases, the exporter may need to obtain accurate plant and product details from the manufacturer for the relevant certification documentation. The notification identifies the plant approval number and registered plant address among the Shipment Clearance Certificate particulars. MSME Exporters MSME exporters are not given a separate compliance category under this notification. Nevertheless, smaller businesses may find destination-specific certificate requirements more demanding when they have limited documentation staff. Checking the requirements before shipment can help avoid unnecessary preparation and confusion. Businesses Exporting to Countries With Health Certification Conditions This is the group for which the amendment may have the most immediate practical relevance. Where an importing country requires a Health Certificate or Shipment Clearance Certificate, the exporter should understand the arrangement specified by DGFT. The notification does not give a country-wise list, so exporters should verify the conditions applicable to their intended destination. Does Prepared Culture Media Still Have a Free Export Policy in India? Yes. Prepared culture media under ITC(HS) Code 38210000 remain Free for export from India. There is no change to Restricted or Prohibited status under Notification No. 44/2026-27. However, the Free classification must be understood alongside other applicable trade conditions. A product being Free under India's export policy does not mean the importing country cannot require additional documentation. An overseas authority may have its own requirements concerning product information, health certification or shipment records. The amended DGFT condition addresses how the specified certificates can be issued when the importing country requires them. For Indian exporters, the practical question is therefore not simply whether the product can be exported. It is also whether the destination country requires additional documents for the particular shipment. When Are Shipment Clearance and Health Certificates Required? One point exporters must get right is that the notification does not make both certificates compulsory for every prepared culture media shipment. The revised condition is linked to what the importing country requires. If the destination country insists on a Shipment Clearance Certificate or Health Certificate, the arrangement mentioned in the DGFT notification becomes relevant. What Should Exporters Check Before Shipping? Before dispatching prepared culture media, the exporter should check the documentary conditions applicable to the destination. Three questions deserve particular attention: Does the importing country require a Shipment Clearance Certificate? Where such certification is required, the amended condition identifies CAPEXIL as the issuing body. Is a Health Certificate also required? If it is, the notification provides for joint issuance by CAPEXIL and the designated Regional Animal Quarantine Officer. What information does the overseas buyer need? The exporter should confirm that the product description, origin, HS code and shipment particulars match the applicable importing-country requirements. This verification can help businesses avoid preparing unnecessary documents or overlooking those actually required for a shipment. Are Both Certificates Mandatory for Every Export? No blanket requirement of that nature is stated in Notification No. 44/2026-27. The notification addresses certificate issuance where the importing country insists on the relevant documentation. However, exporters should not assume that a certificate is unnecessary merely because the product is classified as Free under India's export policy. India's export classification and the destination country's import conditions must be considered separately. Can Prepared Culture Media Be Exported Without a Health Certificate? Where the importing country does not require the specified Health Certificate, this notification does not independently create a universal obligation to obtain one for every shipment. That does not remove any separate health, customs, biosecurity or other requirements that may apply under verified laws. An exporter should therefore confirm the actual destination requirements rather than treating the certificate as automatically necessary or unnecessary. Shipment Clearance Certificate Requirements for Prepared Culture Media Exports The Shipment Clearance Certificate is one of the two documents specifically addressed in the DGFT amendment. According to the notification, CAPEXIL is to issue this certificate on a consignment-wise basis under the applicable certification arrangement. The certificate records information about the exporter, manufacturing plant, product and shipment. What Is a Shipment Clearance Certificate? For the purpose of this amendment, a Shipment Clearance Certificate is a document identifying a particular export consignment and its relevant commercial and plant-related particulars. It helps connect the certification with a defined shipment rather than providing a general clearance covering every future export by the business. Who Issues the Certificate? CAPEXIL, the Chemicals and Allied Products Export Promotion Council, is identified as the issuing authority. CAPEXIL is an export promotion council established under the Ministry of Commerce framework for chemical and allied product exports. Its official resources also describe certification work in particular product sectors.  The exact administrative process for prepared culture media under the new notification should be confirmed with CAPEXIL. Details Required for the Shipment Clearance Certificate The notification lists several particulars that the certificate must contain. Why Does the Plant Approval Number Matter? The notification expressly identifies a Plant Approval Number among the Shipment Clearance Certificate details. This means exporters need to check the relevance and availability of that identifier when preparing information for the certificate. However, the notification does not explain a new plant-approval application procedure for all prepared culture media manufacturers. CAPEXIL operates plant-approval arrangements in certain product sectors, but those arrangements should not automatically be applied to prepared culture media without confirmation.  Manufacturers should seek clarification from the appropriate issuing authority where the plant-approval position is uncertain. What Does Consignment-Wise Certification Mean? Consignment-wise issuance means the certificate is connected to a specific export shipment. That shipment will have its own quantity, invoice information, loading port and destination. An exporter sending separate consignments should not assume that one certificate automatically covers all of them. The notification does not prescribe a fixed processing time, application format or certificate validity period for this product category. Health Certificate Requirements for Prepared Culture Media Exports The Health Certificate serves a different purpose from the Shipment Clearance Certificate. While the shipment clearance document identifies the exporter and consignment, the Health Certificate addresses product and shipment particulars together with the relevant health conditions. The certificate becomes relevant where it is required or mandated by the importing country. What Information Must the Health Certificate Contain? The notification identifies the following details: Product description and HS code: The certificate should identify the goods covered. Packaging: The packaging details relevant to the consignment must be provided. Origin: The origin of the exported product must be identified. Destination: The receiving destination must be stated. Vessel name: The applicable transport information must be included. Date of departure: The certificate must identify the shipment's departure date. Health requirements: Relevant requirements associated with the importing country must be addressed. These details help establish the relationship between the certificate and the exported consignment. Who Is Responsible for Issuing the Health Certificate? The DGFT notification provides for joint issuance by CAPEXIL and the Regional Animal Quarantine Officer, Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture and Farmers Welfare, Government of India. This is the authority description used in the notification. The certificate is not described as being issued by CAPEXIL alone. When Must the Health Certificate Be Provided? The notification states that after shipment is made, the exporter shall provide the Health Certificate to the buyer on a consignment-wise basis under the specified arrangement. The mention of vessel details and departure date is consistent with the document being linked to an actual shipment. However, no exact number of days for submission is prescribed. Exporters should confirm delivery and acceptance arrangements with the relevant parties before planning their shipment. Does the Amendment Introduce Mandatory Product Testing? The notification does not specify new laboratory test parameters, sampling methods or a universal testing procedure for prepared culture media. It refers to health requirements associated with the importing country. Where a destination country requires particular technical evidence, exporters should verify the applicable rules. A new mandatory testing regime should not be inferred from the Health Certificate provision alone. Role of CAPEXIL and the Regional Animal Quarantine Officer The two issuing arrangements should be kept separate because they involve different responsibilities. CAPEXIL's Role Under the new policy condition, CAPEXIL is responsible for issuing the Shipment Clearance Certificate on a consignment-wise basis. It is also one of the two authorities involved in issuing the Health Certificate. For exporters, CAPEXIL is therefore a relevant institution for understanding the certificate arrangements described in the notification. Role of the Regional Animal Quarantine Officer The Regional Animal Quarantine Officer participates in joint issuance of the Health Certificate wherever the importing country requires or mandates it. The notification identifies the officer's role but does not provide a separate detailed inspection, laboratory approval or application process. Businesses should verify operational procedures with the competent authorities. Why Coordination Matters An exporter may have to arrange accurate product information from the manufacturer, commercial details from the export team and shipment particulars from the logistics provider. Where health certification is applicable, the correct information must also reach the relevant issuing authorities. Maintaining clear communication can help prevent conflicting details from appearing in different records. Shipment Clearance Certificate vs Health Certificate: Key Differences The documents are not interchangeable. An overseas buyer asking for a Health Certificate is not necessarily requesting the same information contained in a Shipment Clearance Certificate. Before preparing either document, the exporter should confirm exactly what the importing country requires. Documents and Records Exporters Should Keep Ready The notification gives the information that must appear in the relevant certificates. It does not provide a complete supporting-document checklist for an online application. Exporters should distinguish between the details expressly specified in the notification and the records that may be useful for preparing those details. Exporter Identification Records IEC particulars, business name and registered address should be accurate. Where a business requires an IEC registration or an update independently of this amendment, professional Import Export Code registration services may be relevant. Product and Manufacturing Particulars The exporting business should check the nature of the prepared culture media, relevant quantity and plant information. Merchant exporters may need to coordinate with manufacturers to obtain accurate plant and product particulars. Commercial and Shipment Records Invoice information, destination, loading port, packaging, origin and transport details may be needed to prepare the relevant certificate information. This table is not a prescribed CAPEXIL application checklist. Exporters should confirm actual submission requirements with the issuing authority. Effective Date and Implementation of the DGFT Amendment Notification No. 44/2026-27 was issued on 12 October 2026 and takes effect immediately. The document does not provide a future commencement date, phased implementation schedule or separate transition period. Businesses should not assume that a grace period has been provided. At the same time, the immediate effective date does not make the certificates compulsory for destinations that do not require them under the applicable conditions. How Will the DGFT Amendment Affect Indian Exporters? The practical impact depends on the exporter, the product and the destination country. A business exporting prepared culture media to a market that requires the specified certificates may need to review its documentation arrangements. An exporter supplying a destination that does not impose those conditions may face no direct certificate-related change from this notification. Impact on Prepared Culture Media Manufacturers Manufacturers exporting directly may need to ensure that plant and product information is accurate and available. Where certification is required, their export teams should understand which details the issuing authority needs. Impact on Merchant Exporters Merchant exporters may depend on manufacturers for technical product descriptions and plant-related information. They should avoid relying on incomplete product descriptions when preparing shipment information. Impact on MSMEs Small exporters may need to devote additional staff time to certification coordination where overseas requirements make it necessary. However, the notification does not create a separate or stricter certification rule specifically for MSMEs. Impact on Export Compliance Teams Export compliance teams may need to check whether existing documentation procedures account for the new condition. This could include reviewing internal product classification records and establishing a clear process for confirming destination-country requirements. These are likely operational implications, not additional legal obligations established for each stakeholder. Benefits of the Revised Export Certification Arrangement For exporters dealing with overseas buyers who require additional certification, the amendment provides greater clarity about the authorities involved and the information needed for the specified certificates. 1. Clearer Certificate-Issuing Arrangement The notification identifies CAPEXIL as the authority for the Shipment Clearance Certificate and establishes the joint issuing arrangement for the Health Certificate. This helps exporters determine which institution is responsible for each document. 2. Continued Free Export Policy The government has retained the Free export classification for prepared culture media under ITC(HS) Code 38210000. Exporters should therefore understand the amendment as a change to the policy conditions rather than a general restriction on the product. 3. Better Understanding of Export Documentation The certificate provisions identify specific product, plant, exporter and shipment details. This data will allow the companies to evaluate their documentation process and rectify the lack or discrepancy in the details. 4. Helps in Meeting the Certification Requirements of the Importing Country In cases where an importing country needs these certificates, the notification has an issuance process under the Indian export policy. This may prove helpful for the exporter to meet any documentary requirement but the acceptability depends upon the requirement of the importing country. 5. Helps in Planning Shipment Efficiently Knowing the relevant authorities and certificate particulars may help exporters plan their documentation before dispatching goods. These benefits should be viewed as potential practical advantages. The notification does not guarantee certificate approval, faster customs clearance or reduced export costs. Challenges and Cost Implications for Exporters The amendment may also create practical questions for businesses exporting prepared culture media. The extent of these challenges will depend on whether certification is required for the intended destination. Understanding Different Countries' Requirements A business supplying multiple overseas markets cannot assume that one country's documentary rules apply to every destination. Where certification conditions differ, the exporter may need to check the applicable requirements separately. Obtaining Accurate Plant Information The Shipment Clearance Certificate contains the registered plant address and the Plant Approval Number. It is necessary for merchant exporters and traders to liaise with the manufacturers regarding these details. The notification does not specify a separate new plant-approval procedure for this product category. Managing Certificate-Related Information Shipment details may come from different departments or service providers. For instance, the commercial team may hold invoice information while the logistics team handles vessel and departure particulars. The exporter should make sure the details submitted for certification correspond to the actual consignment. Additional Administrative Costs Certification arrangements may involve document preparation, staff time and communication with the relevant authorities. However, no specific certificate fee for prepared culture media is prescribed in Notification No. 44/2026-27. CAPEXIL publishes a fee schedule for various services, including certain animal by-product certification activities. Those published charges should not automatically be treated as the applicable fees for prepared culture media under this amendment.  Exporters should obtain confirmation of any relevant charges directly from CAPEXIL. Common Export Documentation Risks to Avoid A business can have a correctly classified product and still encounter documentation difficulties if the information supplied for a particular consignment is inconsistent. The following risks deserve attention. 1. Assuming the amendment has restricted exports The policy remains Free. The amendment should not be described as a general export ban or restriction. 2. Treating the certificates as universally mandatory This is because the notification connects the certification system to the needs of the importing country. 3. Employing the wrong HS code Classification under ITC(HS) Code 38210000 should be used in evaluating the product. 4. Failure to include plant information The Shipment Clearance Certificate requires information on the registered plant address and Plant Approval Number. 5. Mistaking Shipment Clearance and Health Certificates They contain different information and issuance systems. 6. The assumption that the processing time is constant The notification gives no timeframe for the issuance of either of the certificates. 7. Disregarding needs of foreign buyers Exporters should establish what documentation the importing country actually requires. 8. Relying on unverified certification procedures Any application portal, fee, supporting-document list or administrative process should be confirmed with the relevant authority. These are documentation and interpretation risks. The notification itself does not prescribe a new penalty schedule for them. What Should Prepared Culture Media Exporters Do Next? Exporters should assess whether the amended policy applies to their products and whether the intended destination requires certification. The following actions provide a practical approach. They are not a government-prescribed application procedure. Step 1: Confirm the Correct Product Classification Check whether the goods fall under ITC(HS) Code 38210000. Product classification should be based on the actual goods rather than a broad laboratory product category. Step 2: Review the DGFT Amendment Read Notification No. 44/2026-27 and identify the certificate-related conditions. Pay particular attention to the continued Free policy classification. Step 3: Verify the Importing-Country Requirements Confirm whether the destination country requires a Shipment Clearance Certificate, Health Certificate or another form of documentation. Where necessary, seek clarification from the overseas buyer or competent authority. Step 4: Prepare Accurate Export Information Where the certificate arrangement applies, organise the relevant exporter, IEC, plant, product, quantity and shipment particulars. Ensure that the information corresponds with the actual consignment. Step 5: Confirm the Applicable Certification Procedure Contact CAPEXIL or the other designated authority, as relevant, to establish the current process. Do not assume that general certification procedures published for unrelated products also apply to prepared culture media. Step 6: Review Documents Before Submission Check that information such as invoice number, product description, port of loading, destination and transport particulars is accurate. Step 7: Maintain Suitable Records Maintain the relevant records and communications in accordance with the record-keeping requirements and policies of the business.  There is no retention period specified in the notice for these certificates. Best Practices for Prepared Culture Media Export Compliance Exporters can make their documentation arrangements more reliable by following a few practical measures. Check the DGFT export policy entry regularly. Product-specific conditions can change through notifications, and businesses should work from the applicable version. Confirm destination requirements before dispatch. Certification needs should be established for the actual importing country. Maintain accurate product descriptions. The product details in relevant commercial and certification records should correspond. Review IEC and business particulars. Exporter identification details should be current and accurate. Coordinate with manufacturers. Merchant exporters should obtain reliable product and plant information where required. Keep proper shipment records. Information regarding invoice number, quantity, destination and mode of transportation should refer to the right consignment. Clear up confusing specifications. Inquiries about issuing authority, procedure, or import country situations should be clarified through competent sources. None of these recommendations should be mistaken for a separate certification process newly prescribed by DGFT. How Corpseed Can Help with DGFT Export Compliance Services Businesses exporting prepared culture media may need help understanding the amended DGFT policy conditions, reviewing their product classification or arranging accurate export documentation. Corpseed provides services related to DGFT licensing, Import Export Code registration and export regulatory matters.  For exporters affected by Notification No. 44/2026-27, the most relevant areas of assistance include the following. DGFT Export Policy Applicability Assessment Businesses need to establish whether their goods are covered by the notified ITC(HS) classification. Corpseed's regulatory consulting support can assist exporters in reviewing the relevant policy entry and understanding the conditions attached to it. Export Documentation Services Where an overseas buyer requires certification, accurate documentation becomes important. Export documentation support can help businesses review exporter identification, product descriptions, invoice particulars and shipment details. Import Export Code Registration Services An IEC is an important identification requirement for businesses engaged in India's import-export trade framework. Corpseed offers Import Export Code registration services for businesses that need assistance obtaining or updating their IEC. The prepared culture media amendment does not itself impose a new IEC registration requirement on existing exporters. DGFT Licence and Regulatory Consulting Businesses dealing with different product categories may need help distinguishing Free exports from goods that independently require export authorisation. Corpseed's DGFT licence consultancy services can support relevant export licensing and regulatory matters where applicable. However, exporters should not apply for a restricted export licence solely because prepared culture media are covered by Notification No. 44/2026-27. CAPEXIL-Related Compliance Guidance Where the importing country requires the specified certificates, exporters may need assistance understanding the relevant documentation and the role of CAPEXIL. Corpseed can provide regulatory and documentation guidance within the scope of its services. The certificates themselves must be issued by the authorities specified in the notification. International Trade Compliance Consulting Exporting to different markets internationally means that companies may have different documentation. Export consulting will assist companies in examining the trade regulations applicable to India and issues related to destinations. Ongoing Regulatory Compliance Support Businesses engaged in regular international trade should review policy changes relevant to their products. Corpseed's regulatory compliance services can assist with applicable policy interpretation and internal compliance planning. Need assistance with prepared culture media export compliance? Corpseed's DGFT export compliance services can help manufacturers and exporters understand applicable policy conditions, review documentation and identify relevant regulatory requirements before planning their shipments. Key Takeaways DGFT Notification No. 44/2026-27 dated 12 October 2026 modifies the export policy conditions of prepared culture media, which are included in ITC (HS) Code 38210000. The modification does not prohibit any exports. The commodity code continues to be Free, but the modified policy allows the issuance of Shipment Clearance Certificates and Health Certificates wherever required by the importing country. The main points exporters should remember are: The notification applies to prepared culture media under ITC(HS) Code 38210000. The Free Export Policy classification continues. CAPEXIL is identified as the authority issuing consignment-wise Shipment Clearance Certificates. Health Certificates are to be jointly issued by CAPEXIL and the designated Regional Animal Quarantine Officer wherever required or mandated by the importing country. Exporters should verify destination-country requirements and ensure that relevant product and shipment particulars are accurate. Businesses should assess the specific requirements applicable to their export transactions rather than assuming that the amendment creates the same certification obligation for every shipment.