DGFT Syncs the ITC(HS) 2022 Import Policy with the Finance Act 2026 — Trade Flags a Classification Error

The Directorate General of Foreign Trade (DGFT) has amended the Indian Trade Classification (Harmonised System), or ITC(HS), 2022 — Schedule I (Import Policy) to bring it into line with the tariff changes made by the Finance Act, 2026. The change, issued through Notification No. 24/2026-27, updates HS codes, item descriptions and policy conditions so that the trade classification schedule matches the customs tariff as amended in the Budget. It is a housekeeping-but-important step: the ITC(HS) is the schedule that tells you whether an item is Free, Restricted, Prohibited or subject to conditions, and it needs to speak the same code language as the Customs Tariff.

The reason it is back in the news in September 2026 is that trade commentators have flagged an apparent error in the notification: tariff item 29159099 appears to have been shown as deleted, even though the Finance Act, 2026 changes under heading 2915 did not delete it. Until DGFT clarifies or issues a corrigendum, importers classifying goods under this heading should reconcile carefully.

What Happened

DGFT, exercising powers under the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade Policy 2023, updated ITC(HS) 2022 Schedule I (Import Policy) to reflect the Finance Act, 2026 (assented earlier in 2026). The intent is consistency: tariff item numbers, descriptions and policy conditions in the import policy schedule should mirror the amended Customs Tariff so that importers, Customs and DGFT systems all read a consignment the same way.

Trade analysis has since pointed out that, under heading 2915, the Finance Act, 2026 made specific changes — reportedly splitting one tariff item into two and inserting a new item — but did not delete tariff item 29159099. The DGFT notification, as read by commentators, nonetheless reflects that item as deleted. The concern is a mismatch between the import policy schedule and the customs tariff for goods in this heading.

Why / Background

Heading 2915 covers saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and derivatives — a group of industrial organic chemicals (acetic acid and its salts and esters, and related products). When the ITC(HS) schedule and the Customs Tariff disagree on whether a specific eight-digit code exists, importers can face system rejections at filing, classification queries at assessment, or uncertainty over the applicable policy condition. Aligning the two schedules after each Finance Act is routine; the wrinkle here is the reported drafting slip.

Who's Affected

The alignment itself is India-wide and touches any importer whose goods sit under tariff lines changed by the Finance Act, 2026. The specific flagged issue is narrower — importers and traders of chemicals under heading 2915 and their customs brokers — but the broader lesson applies to everyone: after an ITC(HS) sync, HS masters in your ERP and broker systems must be updated, and any code that has been split, merged, inserted or deleted must be reconciled.

What Importers and CHAs Should Do Now

• Update your HS code master against the amended ITC(HS) 2022 Schedule I so filings use current, valid eight-digit codes.
• If you import under heading 2915, verify the correct current classification of your product before filing, and keep the Finance Act, 2026 tariff text handy to support it.
• Watch for a DGFT corrigendum on the 29159099 point, and do not assume the item is deleted for customs-tariff purposes on the strength of the policy schedule alone.
• Cross-check the Customs Tariff and the ITC(HS) policy schedule together when they appear to diverge, and raise a query rather than guessing if a code is rejected at filing.
• Document your classification reasoning, so that if an assessment query arises during the transition you can support the line taken.

The Bigger Picture

Syncing the ITC(HS) with each year's Finance Act is a standard part of keeping India's trade and tariff systems coherent, and DGFT does it after every Budget. The flagged discrepancy is a reminder that these large, mechanical updates can carry drafting errors, and that traders cannot treat a schedule update as automatically perfect. The safe posture during a transition is to reconcile the policy schedule against the customs tariff, keep evidence for the classification you adopt, and act on corrigenda promptly when they appear.

Frequently Asked Questions

What is the ITC(HS) and why sync it with the Finance Act? The ITC(HS) is India's trade classification and import/export policy schedule, keyed to HS codes. When the Finance Act amends the Customs Tariff, the ITC(HS) is updated so both schedules use the same codes and descriptions.

Is tariff item 29159099 actually deleted? Trade commentators say it should not be, because the Finance Act, 2026 did not delete it. The DGFT notification has been read as showing it deleted. Treat this as unresolved pending a DGFT clarification or corrigendum, and verify the customs-tariff position for your goods.

Does this change duty rates? The notification aligns classification, not rates. Duty rates flow from the Customs Tariff as amended by the Finance Act. The risk here is code mismatch and filing/assessment friction, not a rate change by itself.

What if my HS code is rejected when I file? Check it against the updated ITC(HS) schedule and the Customs Tariff, correct to the valid current code, and raise a query with your broker or the Customs system rather than forcing an outdated code.

Conclusion

DGFT's Notification 24/2026-27 is routine alignment work, but the reported heading-2915 slip shows why importers should not take a schedule sync on trust. Update your HS masters, reconcile the policy schedule against the customs tariff, and keep an eye out for a corrigendum before finalising classification on affected lines.

This is a general summary for information only and is not legal or customs advice. Verify the exact text of Notification No. 24/2026-27, any corrigendum, and the current ITC(HS) and Customs Tariff position on the official DGFT portal at dgft.gov.in before acting.