The Directorate General of Foreign Trade (DGFT) on February 06, 2026, issued Clarification on the Warehousing of Chemicals under Para 2.36(a) of Foreign Trade Policy (FTP) 2023.
Para 2.36 of the Foreign Trade Policy (FTP) 2023 allows private and public bonded warehouses to be set up in the Domestic Tariff Area under the Customs Act, 1962. It permits import and storage of goods in such warehouses, except prohibited items, arms and ammunition, and hazardous waste and chemicals. Warehoused goods can be cleared for home consumption as per FTP provisions, with applicable customs duty payable at the time of clearance.
Stakeholders raised concerns about the interpretation of this provision, noting that hazardous industrial chemicals such as raw materials, intermediates, speciality chemicals, petrochemicals, and pharmaceutical inputs are essential for trade and manufacturing. They argued that excluding hazardous chemicals created inconsistency because their storage and handling are already regulated and permitted at ports and Container Freight Stations.
To address these concerns, the government clarified that the exclusion in Para 2.36(a) was mainly intended to prevent unregulated storage of hazardous waste and similar prohibited items. It further clarified that warehousing of industrial chemicals is allowed in bonded warehouses to support supply chains and trade efficiency.
However, such warehousing is permitted only if facilities comply with all applicable safety, regulatory, and licensing requirements under domestic laws, the Customs Act, and the Import and Export Policy. All other provisions of Para 2.36 of FTP 2023 must also be followed.
[Circular No. 09/025-26]
