India Trade & Customs Updates – What Exporters, Importers and Customs Broker Need to Know

India’s trade and customs ecosystem witnessed a series of significant regulatory updates between 8th May and 14th May 2026. From stricter sugar export controls to revised customs duties on precious metals, and from hazardous cargo facilitation measures to India-UK CETA compliance reforms, these notifications will directly impact exporters, importers, customs brokers, banks, and logistics stakeholders.

Here’s a detailed breakdown of the latest developments and what businesses should do next.

1. Government Prohibits Sugar Exports Until September 2026

The Directorate General of Foreign Trade (DGFT), vide Notification No. 16/2026-27 dated 13 May 2026, has amended the export policy for sugar under ITC HS Codes 1701 14 90 and 1701 99 90, changing the status from “Restricted” to “Prohibited” with immediate effect until 30 September 2026 or until further orders.

Key Highlights

• Applies to:

  • Raw Sugar

  • White Sugar

  • Refined Sugar

• Objective:

  • Ensure domestic availability

  • Stabilize food security and sugar prices

Important Exemptions

The prohibition does not apply to:

• Exports to the EU and USA under CXL and TRQ quotas

• Exports under the Advance Authorization Scheme (AAS)

• Government-to-Government exports

• Shipments already in the export pipeline before notification publication

Business Impact

Exporters dealing in sugar should:

• Review pending export contracts

• Validate eligibility under exemption categories

• Coordinate closely with customs and port authorities

• Maintain documentary proof for transitional consignments

2. Relief for Exporters Under Interest Subvention Scheme (EPM)

DGFT, through Trade Notice No. 03/2026-27 dated 13 May 2026, has issued clarifications regarding the Interest Subvention Support for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM).

What Was the Issue?

Exporters and banks faced operational challenges in generating UINs (Unique Identification Numbers) during the rollout of the Equalisation Intervention Scheme.

Key Relaxations Introduced

For FY 2025–26

Interest subvention claims will still be allowed if:

• Export credit was disbursed on or after 02.01.2026

• UIN is generated on or before 31.05.2026

For FY 2026–27 Onwards

• UIN generated within 15 days from disbursal will be considered valid

• Claims remain admissible from the original loan disbursal date

Why This Matters

This notification provides critical operational relief for:

• Exporters

• Lending banks

• Trade finance departments

Businesses should immediately reconcile pending UIN-related cases to avoid losing subsidy benefits.

3. Customs Introduces Hazardous Cargo Identification System

CBIC has announced a new system-based identification mechanism for hazardous cargo imports through Circular No. 24/2026-Customs dated 14 May 2026.

What Changes?

Importers must now:

• Mandatorily declare hazardous cargo at the item level in Bills of Entry

• Follow chapter-specific identification rules listed in Annexure-A

System Enhancements

Customs systems will:

• Flag hazardous cargo automatically

• Alert officers during:

  • Assessment

  • Examination

  • Out-of-charge stages

Implementation begins nationwide from 1 July 2026.

Products Covered

The notification lists dozens of chemicals and hazardous substances including:

• Triflic Acid

• Hydrazine Hydrate

• Acetonitrile

• Maleic Anhydride

• Acrylic Acid

• N-Hexane

• Allyl Chloride

• Hazardous pesticide chemicals

Industry Impact

Importers dealing in chemicals, solvents, pesticides, and industrial raw materials should:

• Update ERP and customs filing systems

• Train CHA/customs teams

• Ensure correct hazardous declarations

4. Customs Extends Relief Measures Due to Strait of Hormuz Disruptions

CBIC, vide Circular No. 25/2026-Customs dated 14 May 2026, has extended the validity of several customs facilitation circulars issued under Section 143AA of the Customs Act to mitigate disruptions caused by the closure of the Strait of Hormuz.

Extended Validity

The temporary facilitation measures will remain in force until 30 June 2026.

Circulars Covered

The extension applies to relief measures introduced through:

• Circular 09/2026

• Circular 10/2026

• Circular 12/2026

• Circular 15/2026

• Circular 19/2026

• Circular 21/2026

Implications for Trade

This is particularly important for:

• Importers using Middle East maritime routes

• Shipping lines

• Freight forwarders

• Oil and petrochemical traders

Companies should continue leveraging the relaxed compliance framework during ongoing supply chain disruptions.

5. India-UK CETA: Major Ease in Certificate of Origin Procedures

DGFT has introduced significant amendments related to the India-UK Comprehensive Economic and Trade Agreement (India-UK CETA) through Public Notice No. 10/2026-27 dated 11 May 2026 and Public Notice No. 09/2026-27 dated 11 May 2026.

New Authorized Agencies Added

DGFT has updated Appendix 2B to authorize multiple agencies for issuing Certificates of Origin (CoO), including:

• DGFT regional offices

• APEDA

• Textile Committee

• Spices Board

• Tobacco Board

• Export Inspection Council

• Various SEZ authorities

Self-Declaration Facility Introduced

Amendments to Para 2.88 and 2.91 of HBP 2023 now allow exporters to obtain CoOs through:

• Self-declaration

• Authorized agencies

Why This Is Important

This reform will:

• Reduce documentation delays

• Improve ease of doing business

• Simplify India-UK preferential trade compliance

• Benefit MSME exporters significantly

6. Customs Duty Changes on Precious Metals and Related Imports

The Government has issued multiple customs notifications revising duty structures for precious metals and related goods through Notification No. 15/2026-Customs dated 12 May 2026, Notification No. 16/2026-Customs dated 12 May 2026, Notification No. 17/2026-Customs dated 12 May 2026, and Notification No. 18/2026-Customs dated 12 May 2026.

Major Changes Include

Increased Duty Rates

Several entries have been revised from:

• 5% to 10%

• 4.35% to 10%

Applicable to:

• Precious metals

• Spent catalysts containing precious metals

• Jewellery findings

• Gold and silver imports

Effective Date

These changes came into force from 13 May 2026.

Industry Impact

Affected sectors include:

• Bullion traders

• Jewellery manufacturers

• Precious metal recyclers

• Refiners

• Electronics sector using precious metals

Businesses should reassess:

• Import costing

• Working capital planning

• Pricing strategies

• Procurement contracts

Final Thoughts

The latest trade and customs notifications reflect India’s continued focus on:

• Domestic supply stabilization

• Trade facilitation

• Compliance digitization

• Strategic tariff management

• Export competitiveness

Businesses involved in international trade should proactively review these changes and align their operational, financial, and compliance processes accordingly.

Staying updated with DGFT and CBIC notifications is now more critical than ever in a rapidly evolving global trade environment.