Tax, GST & International Trade Blog

The DGFT, in its earlier Policy Circular No. 01/2025-26 dated July 15, 2025, had clarified that organic textiles do not fall under the accreditation framework of the National Programme for Organic Production (NPOP). This clarification meant that the requirement to submit a Transaction Certificate (TC) from a NAB-accredited body, as outlined in Public Notice No. 39/2024-25 dated January 5, 2025, was not applicable to exports of such products.

However, ambiguity remained regarding the timeline and necessity of submitting the TC under globally recognised organic standards.

Update: TC Submission Not Required at Time of Export

After careful consultation with key industry bodies like AEPC (Apparel Export Promotion Council) and TEXPROCIL (Cotton Textiles Export Promotion Council), DGFT has confirmed that organic textile exports are certified under global frameworks such as:

• ✅ Global Organic Textile Standard (GOTS)
• ✅ Textile Exchange

Under these frameworks, Transaction Certificates are issued post-shipment, based on documentation such as:

• 📄 Shipping Bill
• 📦 Bill of Lading
• 🧾 Final Invoice

Hence, the requirement to submit a TC at the time of export does not align with actual international practices.

Official Action: Deletion of Para 4

Accordingly, Para 4 of Policy Circular No. 01/2025-26 has been deleted. This effectively:

• Removes the mandatory submission of TC at the time of export.
• Aligns Indian procedures with global certification timelines.
• Eases documentation compliance for exporters of organic textiles.

What This Means for Exporters

• Exporters no longer need to obtain and submit a TC before shipment.
• Continue certification under GOTS or Textile Exchange, and submit TC post-shipment as per standard protocol.
• Export documentation remains governed by Shipping Bill, Bill of Lading, and Final Invoice—as required by certifying bodies.

Final Thoughts

This is a welcome move that streamlines export documentation, reduces compliance burden, and aligns India’s policy framework with global organic trade standards. Exporters should ensure they remain compliant with the certification process of their respective organic standards, and maintain all records for post-shipment certification and audits.

Notification Reference: DGFT
Policy Circular No. 03 /2025-26
31 /07/2025