Aligning Export Policy with Finance Act 2025: What It Means for Indian Exporters
The Directorate General of Foreign Trade (DGFT) has invited inputs from stakeholders on aligning India’s Export Policy with the recently passed Finance Act, 2025.
This development signals important changes ahead—especially for exporters, customs consultants, and international traders relying on DGFT notifications and Customs Tariff Schedules.
Let’s break down what’s happening, why it matters, and how Indian businesses can prepare.
Why Is Export Policy Being Aligned with the Finance Act, 2025?
- Finance Act, 2025 introduced amendments in Customs Tariff Act, especially in:
- First Schedule (Import Tariffs)
- Second Schedule (Export Tariffs)
- Export policies under the Foreign Trade Policy (FTP) refer to these Schedules.
- DGFT wants to ensure that notification codes, product categories, and duty implications are consistent across the Customs Act and FTP framework.
🧾 Key Areas Under Review
DGFT has published a draft proposal. Here’s what’s up for alignment:
| Area | What Might Change |
|---|---|
| HS Codes (ITC[HS]) | Alignment with updated Customs Tariff Schedule |
| Export Prohibitions/Restrictions | Removal or update based on new tariff classifications |
| Policy Conditions | Changes in wording to reflect statutory updates |
| Export Duty Changes | Based on Second Schedule amendments under Finance Act 2025 |
🧠 Practical Tip for Exporters
Start reviewing your product’s HS Code classifications. If your export product falls under a code that’s affected in the updated Second Schedule, you may need to revise documentation, pricing, or compliance checks post-alignment.
📌 How to Submit Comments?
DGFT has invited suggestions from:
- Exporters
- Trade bodies
- Customs brokers
- Legal and compliance professionals
Submission deadline: To be announced officially via DGFT site
Keep an eye on updates from the CBIC and notifications under Section 159 of the Customs Act, 1962 (the legal route for tariff changes via notification)
Legal Reference Points
- Finance Act, 2025 – Part B & Schedule II: Amendments to Export Tariff
- Customs Tariff Act, 1975: As modified by Finance Act
- FTP 2023 – 2028: To be revised accordingly post-DGFT alignment.
❓FAQ: Export Policy & Finance Act 2025
Q1: Will this affect MEIS/SEIS or RoDTEP benefits?
A: Not directly. But changes in HS Codes may impact eligibility categories. Review upcoming FTP circulars.
Q2: Do I need to re-apply for export licenses post-alignment?
A: No. But keep documentation updated with the new HS code references once notified.
Q3: Is this alignment optional for now?
A: No, once finalized, it becomes mandatory under FTP and Customs law.
📌 Summary (Google Snippet Optimized):
DGFT seeks comments on aligning export policy with Finance Act 2025. Indian exporters should review HS codes, export duties, and FTP compliance to stay updated.
🚀 Need help navigating export duty changes or updating compliance codes?
Team Efiletax can assist with DGFT filings, Customs compliance, and export tax advisory.