DGFT Updates Schedule-II of ITC (HS) 2022: Reclassifies Rice, Makhana, and Chemicals in Line with Finance Act, 2025 [Read Notification]
DGFT, via Notification, updates Schedule-II (Export Policy) of ITC (HS) 2022 in Line with Finance Act, 2025
DGFT notification – ITC HS update – DGFT schedule-II notification – Taxscan
DGFT notification – ITC HS update – DGFT schedule-II notification – Taxscan
The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry has issued Notification No. 09/2025-26, updating Schedule-II (Export Policy) of the Indian Trade Classification (Harmonized System), ITC (HS) 2022. These changes bring the export classification system into alignment with the amendments introduced through the Finance Act, 2025.
The notification is effective immediately, involves widespread reclassification, deletion, and modification of HS codes, particularly impacting agricultural commodities and chemical exports.
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Key Highlights of the Update:
1. Rice: Granular Reclassification and GI Recognition
Major changes have been introduced in the classification of rice, with older HS codes such as:
- 10063010 – Rice, parboiled
- 10063020 – Basmati rice
- 10063090 – Other
now deleted and replaced with more detailed entries like:
- 10063011 – Parboiled Rice (GI Recognised)
- 10063012 – Basmati Rice
- 10063019 – Other Parboiled Rice
A Supplementary Note clarifies that "GI recognised rice" refers to varieties registered under the Geographical Indications of Goods (Registration and Protection) Act, 1999. This move aims to protect and standardize Indian rice exports, particularly in premium international markets.
Exports to EU member states and select European countries (including the UK, Norway, Switzerland, etc.) will require a Certificate of Inspection from the Export Inspection Council (EIC) for six months from the date of notification.
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2. Makhana: Defined and Reclassified
The update formally defines "Makhana" (Euryale ferox Salisb.), also known as gorgon nut or fox nut, within the HS framework. New entries include:
- 20081921 – Makhana: Popped
- 20081922 – Makhana: Flour and Powder
- 20081929 – Makhana: Other
This provides clarity for exporters and simplifies compliance, enabling more accurate trade data and easier product recognition in global markets.
3. Extensive Revision of Chemical and Pesticide Codes
A large number of chemical products ranging from organic compounds and fertilizers to pesticides, insecticides, and herbicides have been reclassified or newly defined.
Examples include:
- Specific classification of substances like Acephate, Glyphosate, Imidacloprid, and Paraquat dichloride under precise tariff lines.
- Substitution of Supplementary Notes with detailed lists of chemicals along with Indian Standard (IS) codes they must conform to.
- Reorganization of hazardous and controlled substances with export restrictions or specific licensing requirements.
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This standardization ensures better regulatory oversight, enhances trade transparency, and aligns India’s export system with global classification norms and safety standards.
The full updated ITC (HS) classification system is available in the blue button below. Check it out!
Exporters and customs authorities are strongly advised to review the updated lists and Supplementary Notes to ensure seamless compliance and avoid delays in documentation and shipping.
To Read the full text of the Notice CLICK HERE
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