- March 13, 2026
- Posted by: Rishabh Agrawal
- Categories: Import Factoring, Blog
In the year 2025, the policy framework of imports in India underwent an important update that directly concerns importers, customs practitioners, and compliance teams. ITC (HS) 2022 Schedule-I Import Policy, the main document regulating import eligibility and restrictions, was modified by the Directorate General of Foreign Trade (DGFT) Notification 44/2025-26 to reflect the changes made in the Finance Act, 2025.
These changes affect the codes of classification, import policy terms and conditions, and the regulatory requirements of the Indian Trade Classification (Harmonised System) for import clearance and customs compliance.
This blog presents a complete importer-specific analysis of these changes and what businesses need to follow to remain compliant in 2026.
What is DGFT?
The Directorate General of Foreign Trade, or DGFT, is a branch of India’s Ministry of Commerce and Industry, which regulates foreign trade to maximize the benefits. The government body focuses on boosting economic growth and simplifying the procedures. It governs the policies that importers and exporters adhere to and practise in business. The authority handles licensing and manages export quotas while administering the incentives for exports.
What is ITC (HS) 2022 Schedule-I of Import Policy?
India has a harmonized system of the import and export of goods, which is known as ITC HS 2022. It is based on the world HS code system, extending it by adding 8 digits to enable accurate classification of commodities. The classification is important in deciding:
- Customs duty rates
- Import policy conditions
- Licensing requirements
- Trade facilitation practices
The ITC (HS) 2022 Schedule-I Import Policy clearly describes the category of item being free, restricted, prohibited, or having special conditions in importation. The correct classification is essential. Improper classification will result in incorrect duties, along with compliance delays and fines at the port.
Overview of DGFT Notification 44/2025-26
The DGFT made formal changes to ITC (HS) 2022 Schedule-I (Import Policy) by issuing Notification 44/2025-26 on 15 October 2025 to bring it into line with the Finance Act, 2025 (No. 7 of 2025) dated 29 March 2025.
The amendments include:
- Insertion, deletion, modification, division, and consolidation of different ITC (HS) codes.
- Policy conditions alterations associated with certain codes.
- Amendments to section notes, chapter notes, supplementary notes, and item descriptions.
- Alterations in headings and sub-headings in the import policy schedule.
These corrections became effective upon notification and were replaced by instructions of CBIC to make sure that customs officers and other interested parties are informed about the changes.
Key Objectives Behind These Amendments
The principal objectives of Notification 44/2025-26 are:
- To align the import policy schedule with the introduction of tariffs and classifications, as recommended in the Finance Act, 2025.
- To revise policy terms covering the possibility of imports of items that are to be imported under either a Free or Restricted regime or under special licensing conditions.
- To eliminate, develop or combine codes where they need to be uniformly controlled.
This will make sure that the import policy framework and customs tariff schedules are aligned to minimize the differences during the clearance of goods at customs.
What Changed Under the Updated Import Policy
The notification 44/2025-26 does not merely adjust a few codes. It will entail a wide-ranging reorganization of the ITC (HS) 2022 import policy framework. The alterations are recorded in Annexure I and Annexure II of the official notification.
1. New Policy Conditions Added
The new noteworthy conditions relate to the import of pesticides under Chapters 29 and 38. A new Policy Condition No. 07 now requires that:
Pesticides are imported with a Certificate of Registration by the Central Insecticides Board & Registration Committee under the Ministry of Agriculture and Farmers Welfare. Which must conform to the Insecticides Act, 1968.
This implies that the imports of pesticides must now have an extra certification to the standard customs filing that raises compliance requirements for chemical importers.
2. Item Classifications and Policy Condition Changes
The notification also includes changes such as:
- Elimination of a few ITC (HS) codes from Schedule I.
- Reform of some of the codes for the State Trading Enterprise (STE) categories.
- Combine or divide codes to indicate new tariff arrangements.
- Updates to import conditions tied to these codes
As an illustration, several parboiled rice rates were adjusted or removed to adjust to new tariff categories.
This reshaping of the policy schedule means that importers need to review the current classifications to ensure that they reflect the new structure.
What Annexure-II Covers
The Annexure-II of Notification 44/2025-26 dwells upon the supporting notes, such as:
- Revised Section Notes
- Chapter-wise Main Notes
- Supplementary Notes
- Updates headings and sub-headings.
- Improvements in the description of items.
These upgrades enhance uniformity between the lines of trade classification and tariffs, and assist the customs officers and the importers in putting the right policy into practice.
Customs Instructions Supporting the Notification
On 10 November 2025, following the policy changes, the Central Board of Indirect Taxes and Customs (CBIC) published Instruction No. 32/2025-Customs to operationalize the policy changes.
These custom instructions direct principal commissioners and customs officials to update internal processes, sensitize staff, and ensure that correct procedures are effectively implemented at ports and customs stations.
The alignment also makes sure that both the import policy on DGFT and customs enforcement are aligned, which offers more clarity at the border.
Compliance Impact on Import Documentation
Since the ITC (HS) 2022 Schedule-I Import Policy defines what goods may be imported to India and under what circumstances, modifications through Notification 44/2025-26 have an impact on:
- Classification and declarations of the bill of entry.
- Limited items of importation licensing.
- Certificates and permit documentary compliance.
- Customs risk profiling and automatic check.
- Possible physical inspections associated with the import controls.
The internal classifier tables and compliance processes used by importers should be updated to conform to the changed conditions of the policy.
Practical Steps for Importers in 2026
Here is how importers would be ready to comply with the new ITC (HS) Schedule-I import policy:
- Verify Affected HS Codes
Compare your product portfolio with the modified codes in Annexure I. It can be the deletion, restriction, or amended conditions for clearance.
- Update Documentation Templates
Make sure that invoices, certificates, and product descriptions are in line with the new HS codes and policy conditions.
- Assess Licensing Requirements
Products that have been restricted or subject to special policy conditions (e.g. pesticides) might require extra permits or registration before import. Early checking of these requirements eliminates delays in clearance.
- Coordinate with Customs Brokers
Collaborate and work closely with the customs brokers to use the new classifications and make sure that Bills of Entry reflect the current policy conditions.
- Monitor Official DGFT Updates
The repository of the official notifications and the updated versions of the PDFs of the ITC (HS) 2022 Schedule-I Import Policy are always found at the official repository of the DGFT.
Case Example of Policy Change
The most important practical change is the establishment of the import condition of pesticides Policy Condition No. 07 that necessitates external certification. This introduces another compliance point that may influence the schedule and permit process of importing agricultural chemicals.
Although the particular codes and annexures are technical, the bigger picture is evident: importers now have to ensure a better application of customs filing with subsequent external regulation of these items.
Risks of Non-Compliance
Not conforming to the new import policy regulations may lead to:
- Rejection of import declarations
- Goods are held or seized at the port.
- Financial penalties and detention fees.
- Greater customs conformity.
- Release delays and demurrage costs.
The risks are addressed by the timely introduction of the revised ITC (HS) 2022 import policy, and provide a more comfortable logistics process and predictability of costs.
Importer Priorities for Smooth Compliance
To remain competitive in 2026, the importers must focus on:
- Refreshing HS classification crosslinks in internal systems.
- Orientation of compliance teams on new policy terms.
- Consulting with customs consultants to get industry-specific effects.
- Checking documentation and requirements in the case of allowances before the arrival of shipments.
Such solutions transform compliance liabilities into operational transparency.
What the Latest ITC (HS) Policy Changes Mean for Importers
The changes that have been implemented by the use of DGFT Notification 44/2025-26 support the significance of proper HS-classification, new compliance schemes, and active regulatory controls. With India harmonizing its import policy framework along with the tariff reforms as mandated by the Finance Act, 2025, compliance should be managed as a strategic role by the importers. Companies that revise their classification frameworks, documentation procedures, and internal controls promptly will smooth customs clearance processes and will have a more resilient operation in 2026.
Credlix Supporting Importers Through Stronger Working Capital Control
Repeated changes to the policy of imports under ITC (HS) 2022 complicate the compliance process and may directly affect the schedule of shipment and cash flow. Credlix assists importers in enhancing the management of working capital through digital trade finance that facilitates greater visibility of liquidity and optimal payment schedules. Having greater financial control, businesses will be able to absorb regulatory changes without breaking the continuity of the supply chain.
Frequently Asked Questions
Q1: What is DGFT Notification 44/2025-26?
It is the official tool that changed the ITC (HS) 2022 Schedule-I Import Policy by adapting it to the tariff changes in the Finance Act 2025.
Q2: What was the purpose of introducing these import policy changes?
Reforms were put in place to maintain consistency between the tariff structure and import policy framework in India, and to eliminate a few classification issues and ensure correct duty application.
Q3: How soon should importers update compliance processes
Importers are advised to revise classification mappings, documentation forms and licensing inspections as soon as possible because the provisions came into effect on the date of notification.
