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CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th floor, 7-Cooperage Road, Mumbai - 400 001.
Tel: +91-22- 69821200-206
info@chemexcil.in Web : https://chemexcil.in
EPC:REG:REACH:2025-26:1385 10th March 2026
ALL THE MEMBERS OF THE COUNCIL
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DGFT launches TRACE Scheme for reimbursement of international certification and compliance costs – Trade Notice dated 20 February 2026
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Dear Members,
Greetings from CHEMEXCIL!
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, Government of India has issued Trade Notice No. 26/2025-26 dated 20 February 2026 regarding the launch of TRACE – Trade Regulations, Accreditation & Compliance Enablement under the Export Promotion Mission (EPM) – NIRYAT DISHA.
The TRACE initiative aims to support MSME exporters involved in international value chains by providing partial reimbursement of costs incurred towards testing, inspection, certification, audits, traceability systems and other regulatory compliance requirements necessary for export to overseas markets.
Objective of TRACE
The initiative seeks to strengthen India’s export competitiveness by enabling MSMEs to comply with international quality, safety and technical standards required by importing countries and thereby facilitate access to global markets.
Eligibility
Support under TRACE is available to:
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Ø MSMEs involved in international value chains
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Ø Firms holding an active Importer-Exporter Code (IEC)
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Ø Firms having a valid MSME Udyam Registration Number
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Ø Entities not listed in the Denied Entity List under the Foreign Trade Policy
Nature and Extent of Financial Assistance
Under TRACE, assistance will be provided in the form of partial reimbursement of eligible certification and compliance costs.
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Ø Up to 60% reimbursement for certifications listed under the Positive List
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Ø Up to 75% reimbursement for certifications listed under the Priority Positive List
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Ø Maximum cumulative assistance: ₹25 lakh per IEC per financial year
Support is available for certifications, inspections and compliance requirements that are mandatory for market access or required to demonstrate conformity with international standards.
Given Support shall not be admissible in respect of deemed exports, as defined under Chapter 7 of the Foreign Trade Policy or for exports to Special Economic Zones (SEZ).
Examples of Certifications Covered
The Positive List includes several international certifications and regulatory compliances such as:
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Ø EU REACH – Registration, Evaluation, Authorisation and Restriction of Chemicals
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Ø CE Marking (European Union)
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Ø ISO Certifications
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Ø HACCP
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Ø FCC / FDA approvals
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Ø RoHS compliance
Application Process
Eligible exporters are required to follow a two-stage online process:
Stage 1 – Intent-to-Claim (IC)
The exporter must submit an online Intent-to-Claim before obtaining certification or testing.
Stage 2 – Reimbursement Claim (RC)
After obtaining certification, the exporter must submit the reimbursement claim online with:
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Ø Copy of certificate / test report / inspection report
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Ø Invoice and proof of payment
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Ø Evidence that the certification is required for market access.
The Intent-to-Claim will remain valid for two years for submission of the final reimbursement claim.
Support will be provided only after the exporter has successfully obtained the required certification or compliance outcome.
Important Note
TRACE support is applicable prospectively for certifications, testing or inspections undertaken on or after 20 February 2026.
Comparison: Earlier MAI Scheme vs TRACE Scheme
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Particulars
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Earlier MAI Scheme (Statutory Compliance Abroad)
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TRACE Scheme (DGFT – 2026)
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Eligible Entities
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Exporters with FOB exports up to Rs 100 crore
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MSMEs involved in international value chains with IEC and Udyam Registration
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Reimbursement Rate
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Up to 50% of eligible expenses
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Up to 60% (Positive List) and up to 75% (Priority Positive List)
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Maximum Financial Assistance
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Up to Rs 2 crore per exporter per year
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Maximum cumulative assistance Rs 25 lakh per IEC per financial year
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Coverage
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Registration costs (Statutory compliance costs) such as ECHA fees, Government Authority fees, testing, data generation charges, LOA, consultancy charges
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Partial reimbursement of eligible
expenditure incurred by MSMEs (involved in international value chains) towards testing,
inspection, certification, audits, traceability systems, and other conformity-assessment
requirements included in the positive lists notified under Annexures to this Trade Notice.
One Time and Recurring costs covered as specified in the Trade Notice.
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Application Process
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Through Export Promotion Councils
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Online application with DGFT (Intent-to-Claim + Reimbursement Claim)
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Implementation Date
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Under earlier MAI guidelines
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Applicable for certifications obtained on or after 20 Feb 2026
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Members exporting chemicals and allied products to international markets, particularly the European Union (EU REACH) and other regulated markets, are advised to take note of the new TRACE framework and the revised reimbursement limits.
The detailed TRACE guidelines issued by DGFT on 20 February 2026 are enclosed for members’ reference.
The guidelines are being operationalized on a pilot basis and have been placed for stakeholder feedback in accordance with Para 1.07A of the Foreign Trade Policy (FTP) 2023.
Members may forward their inputs directly to DGFT at epm-dgft@gov.in within 30 days from the date of issuance of the Trade Notices (i.e., on or before 23rd March, 2026), with a copy marked to dg@chemexcil.in; ed@chemexcil.in and amrita@chemexcil.in for our records and further follow-up, if required.
Your timely feedback will help ensure that sector-specific concerns of the chemical exporters are appropriately represented.
Thanks and Regards
Raghuveer Kini
Director General
CHEMEXCIL
Encl : Trace guideline 20Feb 2026
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