Circulars

DGFT launches TRACE Scheme for reimbursement of international certification and compliance costs – Trade Notice dated 20 February 2026
 

 

 

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

DGFT launches TRACE Scheme for reimbursement of international certification and compliance costs – Trade Notice dated 20 February 2026

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:

  • Ø  MSMEs involved in international value chains

  • Ø  Firms holding an active Importer-Exporter Code (IEC)

  • Ø  Firms having a valid MSME Udyam Registration Number

  • 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.

  • Ø  Up to 60% reimbursement for certifications listed under the Positive List

  • Ø  Up to 75% reimbursement for certifications listed under the Priority Positive List

  • 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:

  • Ø  EU REACH – Registration, Evaluation, Authorisation and Restriction of Chemicals

  • Ø  CE Marking (European Union)

  • Ø  ISO Certifications

  • Ø  HACCP

  • Ø  FCC / FDA approvals

  • Ø  RoHS compliance

  • Ø  Other regulatory certifications required for exports to various countries.

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:

  • Ø  Copy of certificate / test report / inspection report

  • Ø  Invoice and proof of payment

  • 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

Particulars

Earlier MAI Scheme (Statutory Compliance Abroad)

TRACE Scheme (DGFT – 2026)

Eligible Entities

Exporters with FOB exports up to Rs 100 crore

MSMEs involved in international value chains with IEC and Udyam Registration

Reimbursement Rate

Up to 50% of eligible expenses

Up to 60% (Positive List) and up to 75% (Priority Positive List)

Maximum Financial Assistance

Up to Rs 2 crore per exporter per year

Maximum cumulative assistance Rs 25 lakh per IEC per financial year

Coverage

Registration costs (Statutory compliance costs)  such as ECHA fees, Government Authority fees, testing, data generation charges, LOA, consultancy charges

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.

Application Process

Through Export Promotion Councils

Online application with DGFT (Intent-to-Claim + Reimbursement Claim)

Implementation Date

Under earlier MAI guidelines

Applicable for certifications obtained on or after 20 Feb 2026

 

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