The EximLabh Brief

DGFT Invites Stakeholder Comments on Draft Digital Trade Facilitation Bill, 2026

Public consultation open on draft law giving electronic trade documents legal parity with paper originals

What actually changed

DGFT has opened public consultation on the draft Digital Trade Facilitation Bill, 2026 through Trade Notice No. 24/2025-26 dated 9 February 2026.

The Bill proposes to give electronic trade documents the same legal recognition as paper originals, backed by statutory definitions for electronic records, electronic signatures, and trusted service providers.

The consultation window is open now, and the closing date must be confirmed directly on the DGFT website.

Why it matters

The Bill is the legislative counterpart to Bharat Trade Net, the digital public infrastructure for trade announced in the Union Budget 2025-26.

Its core purpose is to flip the legal default from "paper unless proven electronic" to "electronic unless specifically excluded."

That shift matters because Indian banks, customs authorities, and logistics operators currently demand wet-ink originals for many trade documents even where the underlying transaction is otherwise digital.

For customs brokers, the practical effect is significant. A broker may submit a digitally signed bill of entry through ICEGATE today, but the underlying commercial invoice, packing list, or certificate of origin can still be demanded in physical form during audit or adjudication.

If enacted, the Bill would require Customs authorities to accept electronic records as primary evidence, subject to prescribed integrity and authenticity standards.

The draft Bill is aligned with the UNCITRAL Model Law on Electronic Transferable Records, which India has not yet adopted domestically. MLETR-compliant jurisdictions recognise electronic bills of lading, electronic certificates of origin, and electronic negotiable instruments as functionally equivalent to paper. That alignment matters for cross-border transactions where counterparties in MLETR jurisdictions already operate digitally.

What this does not change

The Bill does not make paper disappear overnight. Existing contracts, letters of credit, and shipping instructions that mandate paper originals will not automatically convert. Until banks and counterparties amend their standard terms, the Bill's legal recognition may be practically irrelevant for a given transaction.

The Bill also does not mean any PDF or scanned copy qualifies as an electronic record. The definitions of "electronic record," "electronic signature," and "trusted service provider" will determine the evidentiary threshold. An electronic certificate of origin that lacks a verifiable digital signature or timestamp may be legally "electronic" but evidentially weak in adjudication.

The compliance trap

Do not assume DGFT and CBIC are harmonised. The Bill is a DGFT-led initiative under the Ministry of Commerce and Industry. The Customs Act, 1962 and its subordinate regulations, including the Bill of Entry (Electronic Integrated Declaration) Regulations and various ICEGATE procedural circulars, remain under CBIC's administrative control. A document that is legally valid under the new Bill may still be rejected by a Customs officer if CBIC has not issued a corresponding instruction accepting that document class for a given procedure.

What to do this week

Primary sources

Confidence

Verified: DGFT has issued Trade Notice No. 24/2025-26 dated 9 February 2026 inviting public consultation on the draft Digital Trade Facilitation Bill, 2026. The Bill is the legislative counterpart to Bharat Trade Net and is aligned with UNCITRAL MLETR.

Interpretation: The Bill would flip the legal default from paper to electronic for trade documents, subject to prescribed integrity and authenticity standards. Customs brokers would see the most immediate practical shift in audit and adjudication workflows.

Needs confirmation: The exact comment deadline, the precise scope of "electronic trade documents" covered, the mechanism for designating trusted service providers, the interplay with the Indian Evidence Act, 1872 and the Information Technology Act, 2000, and whether the Bill imposes mandatory use requirements on government agencies or merely enables voluntary adoption.

Digital trade facilitation, DGFT public consultation, electronic bills of lading, MLETR India, Bharat Trade Net, customs brokers electronic records.