Transaction Certificate No Longer Required at Time of Exporting “Organic Textiles”: DGFT Amends 2025 Policy Circular [Read Circular]

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry has issued a fresh clarification removing the requirement of furnishing a Transaction Certificate (TC) at the time of export for organic textile products.

The announcement came through Policy Circular No. 03/2025-26 dated July 31, 2025 refers back to Policy Circular No. 01/2025-26 dated July 15, 2025 which clarified that organic textiles do not fall under the accreditation categories defined under the National Programme for Organic Production (NPOP).

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As a result, there stood no requirement for such exports to be accompanied by a Transaction Certificate from a NAB-accredited body as informed through Public Notice No. 39/2024-25 dated January 5, 2025.

Earlier this year, the DGFT had stated in a circular dated July 15 that exporters of organic textiles are governed instead by international certification systems such as the Global Organic Textile Standard (GOTS) and the Textile Exchange. However, it was still required that the Transaction Certificate be furnished at the time of export; this latest circular removes that requirement.

As is the norm, and as confirmed by the Apparel Export Promotion Council (AEPC), TEXPROCIL and other trade stakeholders, the issuance of the Transaction Certificate under globally recognised frameworks like GOTS and Textile Exchange only occurs upon completion of the export process. The certificate is based on post-shipment documents, including the Shipping Bill, Bill of Lading and Final Invoice.

Consequently, DGFT has decided to delete Paragraph 4 of Policy Circular No. 01/2025-26, formally eliminating the requirement to submit the Transaction Certificate at the time of export, aligning its procedure with global best practices and easing compliance for exporters.

The move is slated to be accepted by stakeholders within the organic textile sector with open arms, reducing yet another compliance norm.

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