CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council

(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle, 4^th floor, 7-Cooperage Road,   Mumbai - 400 001. India.

Tel:  +91-22- 69821200 to 206

Email : info@chemexcil.in Web : https://chemexcil.in

EPC: ROKOL:DGFTTN:EPM:TRACE:201                                                  06^th July 2026

To 

All The Members of the Council

Dear Member,

The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry, Government of India, has issued Trade Notice No. 09/2026-27 dated 01st July 2026, notifying significant amendments to the Guidelines for Trade Regulations, Accreditation and Compliance Enablement (TRACE) under the Export Promotion Mission (EPM) – Niryat Disha.

The major amendments are summarised below for the benefit of members.

1. The earlier Positive List and Priority Positive List have now been replaced with a single List of Eligible Testing, Inspections and Certifications, which will continue to remain dynamic and will be updated periodically based on stakeholder consultations, international regulatory developments, trade facilitation requirements and emerging certification requirements in overseas markets. The revised list now contains 462 eligible testing, inspection and certification activities covering a wide range of sectors and export products.

2. The financial assistance available under TRACE has been substantially revised and the reimbursement shall now be based on the classification of the MSME:

• Micro & Small Enterprises: Eligible for reimbursement of up to 95% of the actual eligible cost (excluding applicable taxes, duties and cess), subject to the prescribed ceiling.
• Medium Enterprises: Eligible for reimbursement of up to 80% of the actual eligible cost (excluding applicable taxes, duties and cess), subject to the prescribed ceiling.

3. Further, the maximum cumulative reimbursement has been enhanced to 50 lakh per IEC per financial year, as against the earlier ceiling of 25 lakh. Cases requiring assistance beyond 50 lakh may be considered by the competent Sub-Committee on a case-to-case basis after detailed examination.

4. Instead of releasing the reimbursement in a single instalment, approved assistance shall now be released in two instalments:

First Instalment: 50% of the approved financial assistance will be released after successful completion of the certification/testing process and submission of the relevant certificate.

Second Instalment: The balance 50% will be released after the applicant demonstrates exports linked to the relevant certification and submits the prescribed documentary evidence.

5. The reimbursement process has also been modified and the applicants will now be required to submit claims in two separate stages:

Stage I (RC-1)

• Submission of certificate/test report/inspection report;
• Invoice and proof of payment; and
• Evidence showing that the certification is mandatory or market-driven.

Stage II (RC-2)

• Submission of documentary evidence of exports made using the relevant certification; and
• Proof of export realisation linked to such exports.

6. Financial assistance shall continue to be credited directly to the bank account linked with the applicant's IEC. However, payments will now strictly follow the revised two-instalment mechanism prescribed under the amended Operational Guidelines.

7. The existing provision regarding lapse of Intent-to-Claim after two years continues. Additionally, a new provision has been introduced whereby if the first instalment has already been released, the applicant must submit evidence of exports linked to the certification within two years. Failure to do so will result in lapse of the second instalment. The first instalment already released may also become liable for recovery.

8. The TRACE Sub-Committee shall now recommend:

• Financial assistance levels and ceilings;
• Inclusion, revision or deletion of entries in the revised List of Eligible Testing, Inspections and Certifications; and
• Tariff lines eligible for Merchant Exporters under TRACE.

The earlier provisions relating to separate Positive and Priority Positive Lists have accordingly been withdrawn.

9. The revised list of eligible Testing, Inspections and Certifications under TRACE expands the coverage to 462 entries (Annexure-I).

Members are requested to refer to the enclosed DGFT Trade Notice for the complete details of the amendments.

With regards,

Vishal S. Ganju

Executive Director

CHEMEXCIL

Encl: DGFT Trade Notice No. 09/2026-27 dated 01.07.2026