TRACE: how to claim back export certification costs, and the order of steps that matters

The DGFT launched TRACE on 20 February 2026 under the Export Promotion Mission. It runs as a pilot, so the rules can change. The latest notice we found is Trade Notice 09/2026-27 of 1 July 2026, which amended the February guidelines. Everything else in the February notice stays as it was.

What it pays for#

The scheme repays part of what a small firm spends to meet an importing country's rules: testing, inspection, certification, audits and traceability systems. The guidelines name two kinds of cost. One-time costs are prerequisites for market access, such as audits and factory assessments. Recurring costs come with ongoing compliance, such as health or safety certificates and certifications a buyer asks for.

Two limits catch people. The certificate must be on DGFT's List of Eligible Testing, Inspections and Certifications, which the July notice puts at 462 entries and says will be reviewed from time to time. And the repayment is worked out on the cost net of taxes, duties and cess, so the tax you paid on the invoice is not part of the base.

What you get back#

For micro and small firms the ceiling is 95% of the cost. For medium firms it is 80%. In both cases DGFT pays the lower of that share of the actual cost or the notified ceiling for the certification. The cap across all claims is ₹50 lakh per IEC per financial year. Cases above it may be considered case by case after examination by a Sub-Committee; the notice does not promise them.

The July rates are not backdated by default. The guidelines say revised rates apply to testing and inspection certifications obtained on or after the date of the relevant notification. The July notice, dated 1 July 2026, states no separate effective date. If you obtained a certificate before then, read Trade Notice 26/2025-26 and ask DGFT which rate applies to it.

Payment comes in two instalments. The first is half of the approved support, paid once the certification is done and the certificate is submitted. The second half is paid once the exports linked to that certificate are done.

The order that protects the claim#

The guidelines set a two-stage online process, and the first stage has to happen before you hold the document.

1. Intent-to-Claim. Filed online before you obtain the certification, test report or compliance documents. The form asks for the certification name, the certifying agency, the country of export and the amount. A merchant exporter also gives the product's tariff code.
2. First claim (RC-1). Filed after you have the certificate. It tags your Intent-to-Claim and carries the certificate or report, the invoice, proof of payment and evidence that the requirement is mandatory or market-driven.
3. Second claim (RC-2). Filed once exports linked to the certificate have happened. It carries export evidence and proof of realisation.

A self-declaration goes with the claim: no benefit has been taken, or will be taken, for the same expenditure under any other central or state scheme or any other third-party assistance. DGFT pays into the bank account on your IEC, and every applicant can face checks after payment.

Each Intent-to-Claim is valid for two years. Miss that window and the claim lapses, and you cannot claim in the next financial year. After the first instalment, you have two years to submit export evidence. If you do not, the second instalment lapses and DGFT may recover the first.

Who qualifies#

Any MSME in international value chains with an active Importer-Exporter Code that is not on the Denied Entity List, and a valid Udyam Registration Number. Size does not change eligibility, only the rate. A firm that outgrows its MSME category during the year stays eligible for three years from the reclassification.

Merchant exporters qualify only for the product lines DGFT lists for them, and the guidelines tie that to aggregator-based export models. Deemed exports and exports to SEZs are outside the scheme. The scheme is prospective: only activity on or after 20 February 2026 counts.

What to do on Monday#

1. Write down every certificate, audit or test you expect to pay for in the next twelve months, and the buyer or country that requires each one.
2. Check each against the current eligible list in Trade Notice 09/2026-27. Drop the ones that are not on it.
3. Confirm your IEC is active and that your Udyam number is valid.
4. For anything not yet booked or obtained, file the Intent-to-Claim first. The guidelines say the filing comes before you obtain the document. Filing before you book the agency is the safe reading.
5. Keep the agency invoice, the proof of payment and the buyer or regulator requirement together. Each is a required attachment.
6. Link each certificate to the shipments it supports. The second instalment depends on realisation being recorded against those shipments.

If a certificate is already in hand and no Intent-to-Claim was filed, the guidelines give no route that we found for claiming it. Ask DGFT before you spend more on that certificate.