Policy Circular No: 03/2025-26, Dated 31-07-2025
DGFT Clarifies Removal of Transaction Certificate Requirement
The Directorate General of Foreign Trade (DGFT) has released a circular to clarify that exporters of organic textiles are no longer required to submit a Transaction Certificate (TC) at the time of export. This move aims to streamline export procedures and reduce compliance burdens on exporters of organic textile products.
Global Certification Frameworks Already in Place
The decision was taken after confirmation from key stakeholders, including the Apparel Export Promotion Council (AEPC), TEXPROCIL, and other industry bodies. It was highlighted that exports of organic textiles are already certified under globally recognised frameworks like the Global Organic Textile Standard (GOTS) and Textile Exchange. Under these frameworks, a Transaction Certificate is issued only after the export process is completed.
Certification Issued Post-Shipment
As per the global certification norms, the Transaction Certificate is generated based on post-shipment documents, including the Shipping Bill, Bill of Lading, and Final Invoice. Therefore, requiring a TC at the time of export was unnecessary and added an avoidable step for exporters. This clarification ensures that certification aligns with international practices and simplifies compliance.
Deletion of Policy Circular Para 4
With this change, Para 4 of Policy Circular No. 01/2025-26, dated 15-07-2025, has been officially deleted. Exporters of organic textiles can now proceed with exports without submitting a Transaction Certificate upfront, with the certification to be issued post-shipment based on the necessary documents.
