Summary: The Directorate General of Foreign Trade (DGFT), through Notification No. 32/2026-27-DGFT dated 21 August 2026, amends Para 4.63 of the Foreign Trade Policy, 2023 with immediate effect. The amendment revises the duty exemption applicable to imports under Diamond Imprest Authorisation. While the existing exemptions from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, wherever applicable, continue, the reference to exemption from Compensation Cess under sub-section (9) of section 3 of the Customs Tariff Act, 1975 is omitted. The exemption from the whole of Integrated Tax leviable under sub-section (7) of section 3 continues. The notification states that Compensation Cess was discontinued with effect from 01.02.2026 on the recommendation of the GST Council in its 56th Meeting. The amendment is issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 1.02 of FTP 2023. It is issued with the approval of the Hon’ble Minister of Commerce & Industry and bears File No. 01/94/180/152/AM20/PC-4.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 32/2026-27-DGFT | Dated: 21 August 2026
Subject: Amendment to Para 4.63 of FTP-2023-reg
S.O.(E): In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 1.02 of the Foreign Trade Policy, 2023 (as amended from time to time), the Central Government hereby amends Para 4.63 of FTP-2023, with immediate effect, as under:
| Para No. | Existing Para | Revised Para |
|---|---|---|
| 4.63 | Imports under Diamond Imprest Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Such, imports are also exempt from whole of the Integrated Tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, the of section 3 of the Customs Tariff Act, 1975 (51 of 1975). |
Imports under Diamond Imprest Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Such, imports are also exempted from whole of the Integrated Tax leviable under sub-section (7), of section 3 of Customs Tariff Act, 1975 (51 of 1975). |
Effect of the Notification: The reference in Para 4.63 of FTP 2023 to exemption from Compensation Cess leviable under sub-section (9) of section 3 of the Customs Tariff Act, 1975 stands omitted, Compensation Cess having been discontinued with effect from 01.02.2026 on the recommendation of the GST Council in its 56th Meeting. Exemption from the whole of the Integrated Tax leviable under sub-section (7) of section 3 of the said Act on imports under Diamond Imprest Authorisation continues to be available.
This issues with the approval of the Hon’ble Minister of Commerce & Industry.
(Lay Agarwal)
Director General of Foreign Trade
& Ex-officio Addl. Secretary to the Government of India
e-mail: [email protected]
(Issued from File No. 01/94/180/152/AM20/PC-4)
