{"id":7946,"date":"2026-02-10T16:10:57","date_gmt":"2026-02-10T10:40:57","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=7946"},"modified":"2026-02-10T16:10:57","modified_gmt":"2026-02-10T10:40:57","slug":"dgft-clarifies-warehousing-of-industrial-chemicals-under-ftp","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/dgft-clarifies-warehousing-of-industrial-chemicals-under-ftp","title":{"rendered":"DGFT Clarifies Warehousing of Industrial Chemicals under FTP 2023"},"content":{"rendered":"

Policy Circular No. 09\/2025-26<\/a>, Dated 06-02-2026<\/p>\n

The Directorate General of Foreign Trade<\/span><\/span> (DGFT)<\/strong> has issued a policy circular<\/strong> clarifying the scope of warehousing of chemicals<\/strong> under Para 2.36(a) of the Foreign Trade Policy (FTP) 2023<\/strong>.<\/p>\n

The clarification addresses interpretational issues arising from the exclusion of \u201chazardous chemicals\u201d<\/strong> under the said provision.<\/p>\n

1. Background and Regulatory Intent<\/h2>\n

DGFT has clarified that the exclusion of hazardous chemicals<\/strong> under Para 2.36(a)<\/strong> was primarily intended to restrict unregulated warehousing<\/strong> of:<\/p>\n

    \n
  • Hazardous waste and hazardous chemicals, and<\/li>\n
  • Other prohibited or restricted items<\/li>\n<\/ul>\n

    The intent was not<\/strong> to prohibit the warehousing of industrial chemicals<\/strong> that are legitimately used in manufacturing, processing, or trade.<\/p>\n

    2. Permissibility of Warehousing of Industrial Chemicals<\/h2>\n

    The circular clarifies that:<\/p>\n

      \n
    • Warehousing of industrial chemicals is permitted<\/strong> under Para 2.36(a) of FTP 2023<\/strong><\/li>\n
    • Such warehousing may be undertaken in public or private bonded warehouses<\/strong><\/li>\n<\/ul>\n

      These industrial chemicals typically include:<\/p>\n

        \n
      • Raw materials<\/li>\n
      • Intermediates<\/li>\n
      • Inputs used in manufacturing and trading activities<\/li>\n<\/ul>\n

        3. Compliance with Domestic Laws and Safety Regulations<\/h2>\n

        While permitting such warehousing, DGFT has emphasised that:<\/p>\n

          \n
        • Warehousing of industrial chemicals must be in full compliance with all applicable domestic laws, rules, and regulations<\/strong><\/li>\n
        • This includes laws governing safe storage, handling, transportation, and environmental protection<\/strong><\/li>\n<\/ul>\n

          4. Compliance with Customs and Trade Regulations<\/h2>\n

          In addition, the circular reiterates that:<\/p>\n

            \n
          • The chemicals must comply with the Import and Export Policy<\/strong><\/li>\n
          • All provisions of the Customs Act, 1962<\/strong>, along with the rules and regulations framed thereunder, must be adhered to<\/li>\n
          • All other conditions prescribed under Para 2.36 of FTP 2023<\/strong> must be duly followed<\/li>\n<\/ul>\n

            5. Regulatory Objective<\/h2>\n

            The clarification seeks to:<\/p>\n

              \n
            • Remove ambiguity in the interpretation of Para 2.36(a)<\/li>\n
            • Facilitate legitimate trade and manufacturing activities<\/li>\n
            • Prevent misuse of bonded warehousing for prohibited or unsafe materials<\/li>\n
            • Balance trade facilitation<\/strong> with safety and regulatory oversight<\/strong><\/li>\n<\/ul>\n

              6. Key Takeaway<\/h2>\n

              DGFT has clarified that industrial chemicals used for legitimate commercial purposes may be warehoused<\/strong> under FTP 2023, provided all safety, customs, and regulatory requirements<\/strong> are strictly complied with. The exclusion under Para 2.36(a) targets unregulated hazardous waste and chemicals<\/strong>, not bona fide industrial inputs.<\/p>\n","protected":false},"excerpt":{"rendered":"

              Policy Circular No. 09\/2025-26, Dated 06-02-2026 The Directorate General of Foreign Trade…<\/p>\n","protected":false},"author":19,"featured_media":7962,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52,181,54],"tags":[],"class_list":["post-7946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign-trade-policy","category-news-foreign-trade-policy","category-ftp-statutory-scope"],"yoast_head":"\nDGFT Clarifies Warehousing of Industrial Chemicals under FTP 2023<\/title>\n<meta name=\"description\" content=\"DGFT clarifies that industrial chemicals can be warehoused under FTP 2023, while restrictions apply only to unregulated hazardous waste and chemicals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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