India’s trade landscape: key regulatory updates on Trade, SEZs, FTWZ and EXIM (last 3 months)
What changed (high level)
• SEZ rule amendments and faster approvals. The Ministry of Commerce has continued implementing amendments to the SEZ Rules (2006) introduced earlier in 2025, with Board of Approval meetings and supplementary agendas through August underscoring a push to simplify land norms and accelerate approvals for strategic sectors (notably semiconductors and electronics).
• FTWZ clarifications on tax and GST treatment. Recent rulings and advance rulings at state levels have clarified that sales of goods held inside FTWZ (before clearance for home consumption) do not constitute a ‘supply’ for GST purposes — reinforcing the treatment that Customs duty/IGST is triggered on clearance to home consumption rather than intra-FTWZ transactions. This reduces tax uncertainty for warehousing operators and traders using FTWZ for value-added operations.
• DGFT notifications tightening and loosening specific product rules. The Directorate General of Foreign Trade (DGFT) has issued multiple policy updates in recent weeks adjusting export conditions for agri-products and industrial inputs, including timely notifications (early October) on rice-related HSN classifications and other products — reflecting nimble, product-level policy shifts to respond to domestic supply and international market signals.
• Short-term extension of export incentive schemes. The government extended the Remission of Duties and Taxes on Export Products (RoDTEP) scheme to March 2026 — a continuity measure for exporters that preserves tariff rebate predictability while broader trade negotiations and policy reviews proceed.
• Operational tweaks: Advance authorisations and export obligations. DGFT has also amended procedural timelines (for example in Advance Authorisation export obligations and quality control compliance) to ease compliance for importers, EOUs and SEZ/FTWZ users in certain product lines — a practical step to reduce friction for exporters reliant on input imports.
What this means for businesses and trade flows
- Clarity for warehousing and value-added trade: FTWZ users and logistics providers gain legal certainty on GST and customs timing — likely encouraging more manufacturers to perform finishing/assembly in FTWZ before deciding on export vs home-consumption.
- Policy nimbleness: The DGFT’s product-by-product notifications signal a move toward targeted controls (e.g., agri items) rather than blanket trade restrictions — exporters should therefore monitor weekly DGFT notices.
- Continuity of incentives: Extending RoDTEP through March 2026 sustains competitiveness for exporters through a turbulent global trade year.
Risks & watchpoints
• Rapid, frequent product notifications increase compliance burden — exporters must beef up monitoring and counsel.
• Any future SEZ rule changes tied to land or end-use could affect investment decisions for large projects; watch Board of Approval minutes and MoC circulars.
In Short
For exporters and logistics firms: treat the next 90 days as a monitor & adapt window. Prioritise (1) regular DGFT notices subscription, (2) contractual clauses that account for product-level policy changes, and (3) review whether moving higher-value finishing steps into FTWZ can defer tax triggers and improve flexibility.
References
- SEZ India (Ministry of Commerce) — SEZ notices, BoA minutes and rule amendments.
- DGFT — Trade Notices / Public Notices (DGFT portal).
- Tamil Nadu AAR / FTWZ GST discussion and rulings (tax commentary).
- Reuters — RoDTEP extension to March 2026 (news reporting).
- DGFT product notifications and recent amendments (trade advisory summaries).
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