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

> The DGFT TRACE scheme repays part of what MSMEs spend on export testing, audits and certificates. File the Intent-to-Claim before you obtain the certificate, because the guidelines require it before you obtain the certificate.

- Source: https://www.lexiplatform.com/articles/documents/trace-scheme-export-certification-cost-reimbursement
- Published: 2026-10-08  ·  Last updated: 2026-10-08
- Next scheduled review: 2026-12-15
- Reviewed by: Dipender Bhamrah
- Publisher: LEXI Platform Pvt. Ltd.

## How do I claim reimbursement for export certification costs under the TRACE scheme?

File an online Intent-to-Claim on the DGFT portal before you obtain the certificate or test report. After you have it, file the first reimbursement claim with the certificate, invoice, proof of payment and proof of the requirement. File a second claim with export and realisation evidence. DGFT pays in two instalments.

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](https://www.lexiplatform.com/articles/money-home/shipping-bill-still-open-in-edpms).

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.

## Sources

- [DGFT Trade Notice 26/2025-26, 20 February 2026: launch of TRACE, with the Operational and Procedural Guidelines](https://content.trade.gov.in/EPM-Scheme-Guidelines/Guidelines%20for%20Trade%20Regulations,%20Accreditation%20and%20Compliance%20Enablement%20(TRACE)%20under%20Export%20Promotion%20Mission%20(EPM).pdf) — checked 2026-10-08
- [DGFT Trade Notice 09/2026-27, 1 July 2026: amendments to the TRACE guidelines (digitally signed copy)](https://leatherindia.org/wp-content/uploads/2026/07/Trade%20Notice%20No.09%202026-%20Amendment%20to%20TRACE%20Guidelines.pdf) — checked 2026-10-08