DGFT Notification 2026: Advance Authorization for Mycelium Packaging

## Key points The Directorate General of Foreign Trade (DGFT) has released **Notification No. 44/2026** on August 14, 2026, expanding the scope of the Advance Authorization Scheme to include Mycelium-based bio-packaging products. This update allows manufacturers to import raw agricultural substrates and specialized fungal strains duty-free, provided the final sustainable packaging is exported within the stipulated time frame. ## What this means for exporters This notification addresses the rising global demand for plastic-free packaging. By utilizing the Advance Authorization route, Indian exporters can significantly reduce their input costs by exempting Basic Customs Duty (BCD) and IGST on imported inputs. The DGFT has also simplified the Standard Input-Output Norms (SION) for this specific sector to encourage rapid adoption among SME exporters who are transitioning away from petroleum-based plastics. ## Who should act now Sustainable packaging companies and biotech startups focusing on compostable export solutions should immediately align their procurement strategies with this new notification. Ensuring proper documentation under the Foreign Trade Policy 2023-28 is crucial for compliance. Reach out to our consultancy for a detailed briefing on how to apply for this Advance Authorization and to ensure your documentation meets the latest DGFT compliance standards.