DGFT Notification 2026: New Bio-Fuel Export Policy for SME Units

## Key points The Directorate General of Foreign Trade (DGFT) has issued **Notification No. 45/2026-27** dated August 09, 2026, amending the export policy for specific Bio-Fuel categories under Chapter 27 of Schedule 2 (Export Policy) of ITC (HS). This new directive simplifies the process for manufacturers seeking to export non-fossil fuels and biodiesel blends, moving from a rigid 'Prohibited' status to a 'Restricted' category subject to specific quota allocations and environmental clearances. ## What this means for exporters Manufacturers of sustainable fuels can now tap into high-demand European and North American markets. The update introduces a streamlined online application process via the DGFT portal for obtaining Export Authorizations. Applicants must provide proof of raw material sourcing and compliance with National Bio-fuel Policy standards. This is a significant opportunity for SME units involved in green energy to diversify their revenue streams. Exporters need to ensure their RCMC (Registration Cum Membership Certificate) is valid and reflects the correct product category to avoid rejection of export licenses. We recommend a thorough review of the new technical specifications listed in the notification before filing for authorization. **Who should act now:** Bio-fuel manufacturers and chemical exporters looking for new market access under the revised Foreign Trade Policy. Reach out to us for expert assistance in drafting your export license application and ensuring compliance with the latest DGFT norms.