Summary: The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, has issued Trade Notice No. 24/2026-2027 dated August 31, 2026, introducing automated issuance of Free Sale and Commerce Certificates (FSC) on the DGFT portal. The measure concerns certificates issued to exporters for items not covered under the Drugs & Cosmetics Act, 1940 and is stated to be in accordance with Paragraph 2.34 of the Handbook of Procedures (HBP). The relevant HBP framework provides for Free Sale and Commerce Certificates for specified export items and also addresses applications for products covered by the Drugs & Cosmetics Act, 1940.
The Trade Notice explains that, under the existing process, an exporter submits an online application and the file is routed to the concerned Regional Authority (RA) for manual analysis, verification and approval. DGFT states that this manual process involves substantial processing time. The new mechanism is intended to advance digitization and automation, reduce compliance burdens and facilitate frictionless trade.
The automated mechanism is stated to be enabled in line with Paragraph 1.04(d) of the HBP, 2023, as referred to in the Trade Notice, for phased implementation of a rule-based, system-driven workflow with a risk-based management approach. The Handbook of Procedures 2023 is the procedural framework notified under the Foreign Trade Policy 2023.
Under the new mechanism, eligible applications would be considered for automatic issuance in accordance with the prevailing framework. Applications that require verification or do not satisfy the automated processing parameters may continue to be routed to the concerned RA for manual processing. The Trade Notice also provides that certain applications which are automatically approved may subsequently be flagged to the concerned RA for review under the system’s risk management parameters.
Thus, the Trade Notice introduces a system-driven workflow for FSC issuance rather than eliminating the role of Regional Authorities altogether. The stated effect is a transition from manual verification towards automated processing for eligible applications, while retaining manual scrutiny and subsequent risk-based review where the system parameters so require. DGFT describes the intended result as seamless, paperless processing and expedited turnaround times for trade and industry.
Government of India
Ministry of Commerce and Industry
Department of Commerce Directorate
General of Foreign Trade
Trade Notice No. 24/2026-2027-DGFT | Dated: August 31, 2026
To,
All Exporters/Members of Trade & Industry
All Export Promotion Councils / Trade and Industry Associations
All DGFT Regional Authorities
Subject: Automated Issuance of Free Sale and Commerce Certificates (FSC) — regarding.
In accordance with Paragraph 2.34 of the Handbook of Procedures (HBP), the Directorate issues Free Sale and Commerce Certificates to exporters for items not covered under the Drugs & Cosmetics Act, 1940. At present, upon online application by the exporter, the file is routed to the concerned Regional Authority (RA) for manual analysis, verification, and approval, which involves substantial processing time.
2. DGFT has been continuously striving for digitization and automation of the system to reduce compliance burdens and facilitate frictionless trade. In line with this approach, and as envisaged under Paragraph 1.04 (d) of the Handbook of Procedures (HBP), 2023 for the phased implementation of a rule-based, system-driven workflow with a risk-based management approach, the automated issuance of Free Sale and Commerce Certificates (FSC) is being enabled on the DGFT portal, subject to applicable conditions.
3. Key features of this automated issuance mechanism are as follows:
a. Eligible applications would be considered for automatic issuance in accordance with the prevailing framework.
b. Applications requiring verification or those not meeting the automated processing parameters may continue to be routed to the concerned RA for manual processing.
c. Certain auto-approved applications may subsequently be flagged to the concerned RA for review under the system’s risk management parameters.
Effect of this Trade Notice: The automated issuance of Free Sale and Commerce Certificates (FSC) is introduced on the DGFT portal, transitioning from manual verification to a system-driven workflow to enable seamless, paperless processing and expedited turnaround times for trade and industry.
(Ashwani Kumar Ojha)
Deputy Director
(Issued from File No. EC NC-ECNC/11/2026-Export cell (Non-SCOMET))
