Paragraphs 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraph 2.58 makes the decision of DGFT final on the interpretation of the Policy and creates a Policy Interpretation Committee. Paragraph 2.59 lets DGFT grant exemption or relaxation on grounds of genuine hardship. Paragraph 2.60 gives a personal hearing to an aggrieved importer or exporter, but not in proceedings under the Foreign Trade (Development and Regulation) Act, 1992.
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. The procedure is taken from Chapter 2 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026; paragraphs 11.05 and 11.13 come from the Chapter 11 file of April 2023, as first issued. Later Notifications and Public Notices should be checked.
DGFT's decision on interpretation of the Policy, the Handbook, the Appendices and Aayat Niryat Forms, or on classification of an item in ITC(HS), is final and binding (paragraph 2.58(a)). DGFT may relax any provision of the Policy or procedure on grounds of genuine hardship and adverse impact on trade after consulting the relevant committee (paragraph 2.59). A personal hearing can be requested, but not against orders in adjudication or appeal under the Act (paragraph 2.60(b)).
Paragraph 2.58: interpretation of the Policy
Paragraph 2.58(a): DGFT's decision
The decision of DGFT is final and binding on all matters relating to interpretation of the Policy, or of any provision in the Handbook of Procedures, the Appendices and Aayat Niryat Forms, or classification of any item for import or export in ITC(HS). Paragraph 2.58(a) is a rule about who has the last word. It does not say how an applicant is heard; the Handbook paragraphs below do. A dispute over a DGFT decision that needs legal handling can be taken up through our legal dispute resolution service.
Paragraph 2.58(b): the Policy Interpretation Committee
A Policy Interpretation Committee (PIC) may be constituted to aid and advise DGFT. Its composition is: DGFT as Chairman; all Additional DGFTs in Headquarters as members; all Joint DGFTs in Headquarters looking after policy matters as members; the Joint DGFT (PRC/PIC) as Member Secretary; and any other person or representative of the concerned Ministry or Department co-opted by the Chairman.
Paragraph 2.59: exemption and relaxation
DGFT may, in public interest, pass such orders or grant such exemption, relaxation or relief as he may deem fit and proper, on grounds of genuine hardship and adverse impact on trade, to any person or class or category of persons, from any provision of the Policy or any procedure. While granting such exemption, DGFT may impose such conditions as he may deem fit after consulting the Committees listed in a table. The table is printed with overlapping words in the copy and was read on the PDF page of the chapter itself. It has three rows.
| Row | Description | Committee |
|---|---|---|
| (a) | Fixation or modification of product norms | Norms Committees |
| (b) | Matters with a nexus with capital goods and EPCG schemes benefits | EPCG Committee |
| (c) | All other issues | Policy Relaxation Committee (PRC) |
Two conditions are built into the paragraph: genuine hardship and adverse impact on trade. Both are named together, so a request that shows only inconvenience does not fit the words. The paragraph does not say that DGFT must grant relaxation; the verb is "may".
Paragraph 2.60: personal hearing for grievance redressal
Paragraph 2.60(a): who can ask
If an importer or exporter is aggrieved by a decision of the Policy Relaxation Committee, or by a decision or order of any authority in the Directorate General of Foreign Trade, a specific request for a personal hearing, along with the prescribed application fee as per Appendix 2K, has to be made to DGFT. Appendix 2K is named only; no fee is stated here, because none is printed in the paragraph. DGFT may consider the request for relaxation after consulting the concerned Norms Committee, EPCG Committee or Policy Relaxation Committee, and the decision conveyed after the personal hearing is final and binding.
Paragraph 2.60(b): what is excluded
The opportunity for personal hearing does not apply to a decision or order made in any proceeding, including an adjudication proceeding, whether at the original stage or at the appellate stage, under the relevant provisions of the Act. A firm facing a penalty order should therefore look to the appeal route in the Act rather than to paragraph 2.60. See our articles on section 15 of the FTDR Act on appeals against adjudication orders and sections 16 and 17 on review and the powers of the adjudicating and appellate authorities.
What the Handbook requires
Paragraph 2.95: application to the Policy Interpretation Committee
An application seeking interpretation of any policy provision is made in ANF-2F to the Policy Interpretation Committee at Headquarters under paragraph 2.58(b) of the Policy.
Paragraph 2.96: application to the Policy Relaxation Committee
Under paragraph 2.96(a), an application to the Policy Relaxation Committee under paragraph 2.59 is made online in ANF-2D with the prescribed fee and documents. An application for review of a decision of any committee, or a decision or order of any subordinate authority in the Directorate General of Foreign Trade, under paragraph 2.60, is submitted online in ANF-2E. Paragraph 2.96(b) says DGFT is the Chairman of the PRC, with all Additional DGFTs and all Joint DGFTs in charge of policy divisions in Headquarters as members, the Additional or Joint DGFT (PRC) as Member Secretary, and power to co-opt a member with specific expertise or experience.
Paragraph 2.97: application to the EPCG Committee
An application to the Export Promotion Capital Goods (EPCG) Committee under paragraph 2.59 is made online in ANF-2D with the prescribed fee in terms of Appendix 2K and the required documents. The Additional DGFT in charge of EPCG is Chairman, the Joint DGFT (EPCG) is Member Secretary, and an official from the Department of Revenue is a member; representatives of the concerned line Ministry or Department may be co-opted.
Paragraph 11.05: clarifications
A request seeking clarification on any provision of the Policy or the Handbook, or on the importability or exportability of items under ITC(HS), is made to DGFT in the form ANF2F. The paragraph adds that clarification may also be sought on e-mail.
Paragraph 11.13: general power of review
DGFT may, on his own or otherwise, call for the records of any case pending with, or decided by, an officer subordinate to him or an officer of any EPC or FIEO, including a group or committee of officers nominated, appointed or authorised by him, and pass such orders as he may deem fit. The file of April 2023 is the one consulted; later Public Notices should be checked.
The Handbook rests on the Director General's power described in our article on section 6 of the FTDR Act. The Policy as a whole is made under section 5 (see section 5 of the FTDR Act); paragraph 2.60(b) itself refers to the Act.
A worked example
Varun Components Private Limited, an invented firm, finds that a procedural requirement of a scheme cannot be met because of a hardship it did not cause. Under paragraph 2.59 it may ask DGFT for relaxation, online in ANF-2D under paragraph 2.96(a) with the prescribed fee; the Policy Relaxation Committee considers it. If the committee's decision aggrieves Varun, paragraph 2.60(a) lets it request a personal hearing with the Appendix 2K fee, and paragraph 2.96(a) says the review application goes online in ANF-2E. If instead Varun wants to know whether an item is exportable, paragraph 11.05 points to a request in ANF2F.
Need help with a relaxation or a grievance?
A relaxation request is won or lost on how the hardship is explained and documented. Our team can prepare the application and represent you through our legal dispute resolution service.
Key takeaways
- DGFT's decision on interpretation is final and binding (paragraph 2.58(a)).
- Relaxation needs genuine hardship and adverse impact on trade, and a prior consultation of the Norms, EPCG or Policy Relaxation Committee (paragraph 2.59).
- A personal hearing is not available in adjudication or appeal under the Act (paragraph 2.60(b)).
- ANF-2F, ANF-2D and ANF-2E are the forms named for interpretation, relaxation and review.
- Paragraph 11.13 gives DGFT a general power of review.
Read next
- Handbook of Procedures, 2023, paragraphs 2.79 to 2.85: RCMC application, validity and de-registration
- Paragraph 2.62 of the Foreign Trade Policy, 2023: certificates of origin and the Approved Exporter Scheme
- Section 13 and 14 of the FTDR Act: the Adjudicating Authority and notice before a penalty
- FTP 2023: the legal framework, and FTP against HBP
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.