India Trade & Customs Updates: Key Changes Issued Between 16 to 22 August 2026

India’s trade and customs regulatory framework saw several important updates this week, covering clear float glass imports, raw sugar imports under the Tariff Rate Quota (TRQ), export transactions in Indian Rupees, and international cargo transshipment amid continuing disruptions in West Asia.

Here’s a breakdown of the key DGFT and CBIC developments businesses should be aware of.

1. Import Policy for Clear Float Glass Revised

The Directorate General of Foreign Trade (DGFT), through Notification No. 29/2026-27 dated 18 August 2026, has revised the import policy for certain categories of Clear Float Glass (4 mm–12 mm) falling under ITC (HS) Codes 70051090 and 70052990.

The import policy for these products has been changed from “Free” to “Restricted.”

However, imports will continue to be Free where the CIF value is ₹34,000 or above per MT.

The Minimum Import Price (MIP) condition does not apply to imports made by:

• Advance Authorisation holders

• Export Oriented Units (EOUs)

• Units located in SEZs

This exemption is subject to the condition that imported inputs under the specified ITC (HS) codes are not sold into the Domestic Tariff Area (DTA).

The MIP condition will remain applicable for one year from the date of publication of the Notification.

What This Means for Importers

Businesses importing clear float glass under the affected HS codes should review the value of upcoming consignments and determine whether their imports meet the ₹34,000 per MT threshold. Imports falling below the prescribed value may be subject to the revised Restricted policy.

2. 10 Lakh MT Duty-Free TRQ Introduced for Raw Sugar

DGFT has amended the import policy condition for Raw Sugar under Exim Code 170114.

Under Notification No. 31/2026-2027 dated 20 August 2026, imports remain “Free”, but a Tariff Rate Quota (TRQ) of 10 lakh MT has been introduced for duty-free imports up to 31 October 2026.

The notification also provides a one-time option for converting Advance Authorisations issued under SION E52 into the TRQ Scheme for the quantity of raw sugar actually imported under such authorisations up to the date of the notification.

The conversion is subject to payment of the exempted GST availed at the time of import. Refined sugar manufactured from the imported raw sugar must also be sold in the domestic market by 31 October 2026.

What This Means for the Sugar Industry

The measure creates a time-bound route for eligible businesses to import raw sugar under the duty-free TRQ while also allowing certain existing Advance Authorisation holders to transition to the new framework.

3. DGFT Issues Modalities for Raw Sugar TRQ Allocation

Following the raw sugar policy amendment, DGFT issued Public Notice No. 24/2026-2027 dated 20 August 2026, laying down the operational framework for allocation of the 10 lakh MT Raw Sugar TRQ.

Applications are invited from millers and refiners having their own functional capacity to convert raw sugar into white/refined sugar.

The application window is:

21 August 2026 to 28 August 2026

Applications must be submitted online through the DGFT portal under the Import Management System → Tariff Rate Quota (TRQ).

Applicants are required to provide a self-declaration of refining capacity along with supporting evidence. Preference in allocation will be given to importers undertaking to complete imports by 15 October 2026.

Once the quota is allocated, TRQ holders must provide Letter of Credit/confirmed contract details to DGFT within 15 days of obtaining the TRQ authorisation.

The Public Notice also requires imported raw sugar to be processed at the TRQ holder’s own facility. For every 1.05 kg of raw sugar covered under the authorisation, the holder must produce and sell 1 kg of refined sugar in the domestic market by 31 October 2026.

Unused quota may be surrendered within the prescribed period. Failure to utilise or surrender the allocation can result in action, including cancellation or reduction of allocation and restrictions on future TRQ allocations.

One-Time Conversion from Advance Authorisation

Eligible Advance Authorisation holders under SION E52 can also apply for conversion to the TRQ Scheme during the 21–28 August 2026 application window.

Applicants must provide supporting documents, including the relevant Advance Authorisation, proof of GST payment and self-certified details of raw sugar imported, refined sugar exported and quantities available for processing.

4. FTP Rules for Export Contracts and INR Realisation Amended

Through Notification No. 30/2026-27 dated 20 August 2026, DGFT has amended Paragraphs 2.52 and 2.53 of the Foreign Trade Policy (FTP) 2023.

The amendment aligns FTP provisions relating to the denomination of export contracts and eligibility for FTP benefits for export realisations in Indian Rupees with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023.

Under revised Para 2.52, export contracts and invoices, other than those involving member countries of the Asian Clearing Union (ACU), may be denominated either in foreign currency or Indian Rupees. Export proceeds may also be realised in either foreign currency or INR.

For ACU transactions, separate conditions apply. Export contracts involving ACU member countries other than Nepal and Bhutan are to be denominated in a currency determined by the ACU, while transactions may also be handled in accordance with directions issued by the Reserve Bank of India.

For Nepal and Bhutan, export contracts are to be denominated and settled in Indian Rupees or handled according to RBI directions. Contracts and invoices under EXIM Bank/Government of India Lines of Credit may also be denominated in INR.

Revised Para 2.53 further provides that exports to countries other than Nepal and Bhutan, where proceeds are realised in INR through banking channels by credit to eligible Indian Rupee accounts of persons resident outside India in accordance with FEMA regulations, will be eligible for FTP export benefits, incentives and fulfilment of Export Obligations, at par with exports realised in foreign currency.

Why This Matters

The amendment provides clearer alignment between the FTP and India’s foreign exchange framework for INR-based international trade transactions. Exporters using permitted INR settlement mechanisms should review the revised provisions while evaluating eligibility for FTP benefits and export obligation fulfilment.

5. CBIC Extends Facilitation for International Cargo Transshipment

The Central Board of Indirect Taxes and Customs (CBIC), through Circular No. 36/2026-Customs dated 20 August 2026, has issued further facilitation measures in response to continuing disruption of maritime routes and uncertainty in the Gulf region.

CBIC has clarified that international transshipment of both FCL and LCL cargo may be permitted from all seaports and international airports, including cases where cargo is transshipped through other Customs stations.

The Circular also introduces temporary arrangements for Liquid Bulk, Break Bulk and Solid/Dry Bulk cargo diverted to Indian ports because of maritime security concerns, disrupted international shipping routes or other logistical exigencies.

Jurisdictional Customs authorities may permit temporary unloading, storage and onward transshipment/re-export through approved Customs areas, bonded warehouses, tanks, silos, yards and other authorised storage facilities.

Such cargo must remain under Customs supervision and control, with appropriate inventory records, bonds or undertakings and other safeguards. It cannot be cleared for home consumption or diverted into the Domestic Tariff Area.

Repacking of bulk cargo may also be permitted on a case-to-case basis within the Customs area under Customs supervision.

For transshipment involving multiple Customs stations, prior coordination between the respective Nodal Officers and appropriate Customs control during cargo movement will continue to apply.

These facilitative provisions will remain in force up to 31 October 2026.

Conclusion

The trade and customs updates issued between 16 and 22 August 2026 introduce important changes across import policy, export realisation and cargo transshipment procedures.

The changes to clear float glass imports introduce a new price-linked import condition, while the raw sugar notifications establish a 10 lakh MT duty-free TRQ and detailed allocation framework. The amendment to FTP provisions brings greater alignment for permitted INR-based export transactions, while CBIC’s latest circular continues facilitation for international cargo affected by disruptions in West Asia.

Importers, exporters, customs brokers and logistics businesses should review the applicable notifications and circular carefully to assess their impact on import planning, export realisation, Customs procedures and compliance requirements.