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Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
*****
Vanijya Bhawan, New Delhi – 110 011
Trade Notice No. 24 /2025-26
February 09, 2026
To,
• All Exporters/Members of Trade and Industry
• All Export Promotion Councils & Commodity Boards
• Other Stakeholders & Trade and Industry Associations
• Academia and Legal experts
Subject: Request for comments on the draft of ‘The Digital Trade Facilitation
Bill, 2026’ – regarding.
Reference is invited to the the announcement in the Union Budget 2025–26
for implementing BharatTradeNet as a Digital Public Infrastructure for trade.
However, it has been felt that the existing legal framework does not fully recognise
electronic trade documents or provide a comprehensive basis for cross-border digital
trust services, constraining interoperability with global digital trade systems.
Accordingly, a draft has been prepared for ‘The Digital Trade Facilitation Bill, 2026’ to
address these requirements.
2.
The proposed ‘Digital Trade Facilitation Bill, 2026’ seeks to provide statutory
recognition to electronic trade documents, enable trusted digital verification
mechanisms, and facilitate secure cross-border exchange of trade records. A copy of
the draft Bill is placed at Annexure to this Trade Notice for soliciting feedback,
comments and suggestions of the ecosystem stakeholders and the industry experts.
3.
Inputs must be submitted within 30 days of issuance of this Trade Notice at
the e-mail: tradefinance-dgft@gov.in.
This Trade Notice is issued with the approval of the Competent Authority.
(Md. Moin Afaque)
Joint Director General of Foreign Trade
(Issued from F.No. 01/02/14/AM-26/EG&TF/e- 42735)
MOIN
AFAQUE
Digitally signed
by MOIN AFAQUE
Date: 2026.02.09
16:58:36 +05'30'
ANNEXURE
The Digital Trade Facilitation Bill, 2026
A Bill to provide legal recognition, validity and enforceability to electronic trade
documents and to regulate the use, management and cross-border recognition of
digital identity and trust services and for matters connected therewith or incidental
thereto.
CHAPTER I
PRELIMINARY
Short title and
commencement
1. (1) This Bill may be called The Digital Trade Facilitation Bill,
2026.
(2) It shall come into force on such date as the Central
Government may, by notification in the Official Gazette, appoint.
Definitions
2. In this Bill, unless the context otherwise requires, ––
(a) "competent authority" means the authority as designated by
the Central Government under this Bill;
(b) "control" means the exclusive authority to exercise rights
over an electronic trade document, including the ability to
amend, endorse, extinguish, or otherwise deal with such rights,
in accordance with this Bill, using electronic means, including
identity credentials, electronic authentication, or any secure
digital representation recognised by this Bill or by rules made
thereunder.
(c) "electronic archiving service" means a service that ensures
long-term preservation and integrity of electronic data and
documents by reliable, auditable, and tamper-evident means.
(d) "electronic identification" means the process of establishing
or verifying the identity of a natural person, a legal person, or a
natural person authorised to act on behalf of a legal person,
using electronic means.
(e) "electronic registered delivery service" means a service that
provides evidence of sending and receiving electronic data, and
protects the data transmitted against loss, theft, or unauthorised
alteration.
(f) "electronic seal" means data in electronic form which is
attached to or logically associated with other electronic data to
ensure its origin and integrity, and which is created by a reliable
method under this Bill.
(g) "electronic time stamp" means data in electronic form which
binds the date and time to other electronic data, ensuring that
such data existed at that time, and is created by a reliable and
auditable method.
(h) "electronic trade document" means any trade document or
instrument in electronic form, as may be notified by the Central
Government in the First Schedule, that entitles the holder to
claim the performance of the obligation indicated therein and
complies with all the requirements specified in section 6 of this
Bill.
(i) "identity credentials" means the data, or the physical object
upon which the data may reside, that a person may present for
electronic identification.
(j) "identity management service provider" means a person
who has been granted an authority to provide identity
management services.
(k) "identity management system" means a set of processes
and technologies used to identify, authenticate, and verify the
identity of a person, system, or device, using reliable methods
as may be prescribed.
(l) "paper trade document" means any trade document or
instrument, in physical paper form, specified in the First
Schedule, which entitles the holder thereof to claim the
performance of the obligation indicated therein.
(m)"relying party" means a person who acts on the basis of the
result of identity management services or trust services;
(n) "subscriber" means
a person
who enters
into
an
arrangement for the provision of identity management services
or trust services with an identity management service provider
or a trust service provider;
(o) "trust services" means an electronic service that provides
assurance of certain qualities of a data message or an
electronic trade document and includes the services for creating
and managing electronic signatures, electronic seals, electronic
time stamps, website authentication, electronic archiving,
electronic registered delivery services, or any such other
services as may be notified by the Central Government.
(p) "trust service provider" means any natural or legal person,
who provides one or more trust services as defined in clause
(o) of this section.
(q) all other words and expressions used herein but not defined
and defined in the Information Technology Act, 2000 (Act No.
21 of 2000), shall have the meanings respectively assigned to
them in that Act.
Interpretation of
this Bill
3. (1) If any question arises concerning any matter not expressly
dealt with in this Bill, such matter shall be settled in accordance
with the general principles of commercial practice commonly
accepted in India, regard being had to the international origin of
this Bill and the need to promote uniformity in its application.
(2) This Bill shall be read in conjunction with, and shall not
derogate from, the provisions of the Consumer Protection Act,
2019 and the Information Technology Act, 2000.
Application
4. (1) This Bill shall apply to such electronic trade documents as
are specified in the First Schedule.
(2) Nothing in this Bill shall affect-
(a) the application of any law for the time being in force
relating to data privacy or data protection; or,
(b) any paper trade document or any electronic trade
document issued before the date on which this Bill
comes into force; or,
(c) the provisions of the Information Technology Act, 2000
(21 of 2000), or any rules or regulations made
thereunder, in relation to trust services already existing
or regulated under that Act.
(3) The Central Government may, by notification in the Official
Gazette, add to, omit from, or otherwise amend the First
Schedule or the Second Schedule.
CHAPTER II
ELECTRONIC TRADE DOCUMENTS
Legal
recognition of
Electronic Trade
Documents
5. An electronic trade document shall not be denied legal effect,
validity or enforceability on the sole ground that it is in electronic
form, provided it complies with the provisions contained in this
Chapter.
Requirements
for Electronic
Trade
Documents
6. (1) Where the law requires a paper trade document specified in
the First Schedule, that requirement shall be deemed to be met
by an electronic trade document if:
(a)
the electronic trade document contains at least the
information
required
to
be
contained
in
a
corresponding paper trade document.
(b)
a reliable method is used, -
(i)
To identify the electronic trade document.
(ii)
To render that electronic trade document
capable of being subject to control from its creation until it
ceases to have any effect or validity.
(iii)
To retain the integrity of that electronic trade
document; and,
(iv)
to provide a verifiable audit trail from the
creation to the extinction of the document.
(c)
the method used to establish control, integrity and
authenticity is deemed to be reliable as specified
under this Chapter or as notified by the Central
Government.
(2) The Central Government may, by notification in the Official
Gazette, make rules to carry out the provisions of this Chapter,
including but not limited to -
(a) prescribing standards and methods for ensuring the
authenticity, integrity, and control of electronic trade
documents.
(b) specifying, determining, or prescribing what constitutes a
reliable method for the purposes of this Chapter.
Provided that the implementation of such standards or
rules, shall, as far as practicable, be technology neutral and
promote interoperability.
(3) The place of business of a party shall not be deemed to be
at any location by reason only of—
(a) the location of any equipment or technology supporting
an information system used by such party in
connection with an electronic trade document; or,
(b) the fact that an information system used in connection
with an electronic trade document may be accessed
by other parties at such location; or,
(c) the sole fact that such party makes use of an electronic
address or any other element of an information
system connected to a specific country.
Additional
Information in
Electronic Trade
Documents
7. Nothing in this Chapter precludes the inclusion of information in
an electronic trade document in addition to that contained in a
corresponding paper trade document.
Control,
Transfer,
Endorsement
and Amendment
of Electronic
Trade
Documents
8. (1) Where the law requires or permits possession of a paper
trade document, such requirement shall be deemed to be satisfied,
in relation to an electronic trade document, if a reliable method is
used-
(a) to establish control of the electronic trade document by a
person; and,
(b) to identify that person as the person in control.
Explanation: For the purposes of this Bill or any other law for
the time being in force, the establishment of control over an
electronic trade document by a reliable method shall be
deemed to confer possession of the document and shall carry
the same legal consequences as possession of a paper trade
document.
(2) The person who is identified, in accordance with a reliable
method, as having control over an electronic trade document
shall be deemed to be the holder thereof and entitled to
exercise all rights and obligations attached thereto.
(3) The transfer of control, endorsement, or amendment of an
electronic trade document, effected by a reliable method, shall
have the same legal effect as the transfer of control,
endorsement, or amendment of a paper trade document.
Change of Form
9. (1) A paper trade document may be converted into an electronic
trade document, and an electronic trade document may be
converted into a paper trade document, as the case may be, if:
(a) a reliable method for the change of form in accordance
with this chapter is used, and,
(b) a statement that the document has been converted is
included in the document in its new form.
(2) Where a document is converted in accordance with
subsection (1), in such case, -
(a) the document in its old form ceases to have effect, and,
(b) all rights, obligations and liabilities relating to the
document continue to have effect in relation to the
document in its new form.
CHAPTER III
IDENTITY MANAGEMENT AND TRUST SERVICES
Legal
Recognition of
Identity
Management
Services and
Trust Services
10. The result of electronic identification, the use of an identity
management service or credential, or the use of a trust service
shall not be denied legal effect, validity, enforceability, or
admissibility as evidence solely on the ground that such
identification, service, credential, or trust service is in electronic
form.
Reliability
Standards for
Identity
Management
Services and
11. (1) Where the law requires-
(a) the identification of a person for any purpose, such
requirement shall be deemed to be satisfied if a reliable
method is used for the identity proofing and electronic
Trust Services
identification of the person for that purpose; or
(b) the use of a trust service for any purpose, such
requirement shall be deemed to be satisfied if a reliable
method is used for the trust service for that purpose.
Explanation- For the purpose of this sub-section, ‘reliable
method’ means a method used to authenticate any person
or trust service, including use of electronic and digital
signatures.
(2) For the purposes of sub-section (1), a method shall be
considered reliable if it is proven in fact by or before a court or
an authority notified by the Central Government in this behalf to
have fulfilled the relevant function for which it is being used,
either alone or together with other evidence.
(3) In determining the reliability of a method under sub-section
(2), all relevant circumstances shall be taken into account,
including but not limited to-
(a)
compliance by the identity management service
provider or trust service provider, as the case may be, with
the obligations specified in this Chapter;
(b)
compliance of the operational rules, policies and
practices of the identity management service provider or
trust service provider, as the case may be, with any
applicable
recognised
international
standards
and
procedures
relevant
for
the
provision
of
identity
management services or trust services, including level of
assurance and reliability frameworks;
(c) in the case of identity management services, the
adequacy of governance, information security management,
technical controls, and oversight or audit mechanisms;
(d) in the case of trust services, the security of systems and
resources, the existence of relevant accreditation or
independent audit, the purpose for which the trust service is
used, and any relevant agreement between the parties,
including any limitation on the purpose or value of the
transaction.
(4) In determining the reliability of the method, no regard shall
be had to
(a) the geographic location where the identity management
service or trust service is provided; or,
(b)the geographic location of the place of business of the
identity management service provider or trust service
provider.
(5) A method used by an identity management service or trust
service notified as reliable by the Central Government or any
authority notified by it in this behalf shall be presumed to be
reliable.
(6) The presumption under sub-section (5) shall not limit-
(a) the ability of any person to establish in any other manner
the reliability of a method; or,
(b) the right of any person to adduce evidence of the non-
reliability of a method used by an identity management
service or trust service notified as reliable.
Obligations and
Liabilities of
Service
Providers
12. (1) Every identity management service provider or trust service
provider, as the case may be, shall
(a)establish and maintain operational rules, policies, and
practices appropriate to the purpose and design of the
service, including, where applicable,-
(i)
in case of identity management services,
enrolment and identity proofing, attribute updates,
issuing,
activating,
suspending,
revoking,
and
renewing credentials, and managing identification
factors and mechanisms; and,
(ii)
in case of trust services, a plan to ensure
continuity in case of termination of activity.
(b)
act in accordance with its operational rules,
policies, practices, and any representations made
with respect to them;
(c)
ensure online availability and proper operation
of the service, as applicable;
(d)
make its operational rules, policies, and
practices easily accessible to subscribers, relying
parties, and other relevant persons;
(e)
provide means for subscribers to report
security breaches;
(f)
provide means for relying parties to ascertain
any limitations on use or liability, including-
(i)
any limitation on the purpose or value for
which the service may be used; and
(ii)
any limitation on the scope or extent of liability
stipulated by the provider;
(g)
in the event of a breach of security or loss of
integrity having a significant impact on the service,
take all reasonable steps, including
(i)
containing the breach or loss, including, where
appropriate, suspending the affected service or
revoking the affected credentials or means of
access;
(ii)
remedying the breach or loss;
(iii)
notifying the breach or loss to affected
subscribers, relying parties, and any competent
authority as may be prescribed; and,
(iv)
upon receiving a notification of a potential
breach or loss fromany person, promptly investigate
and take appropriate action asspecified in clauses (i)
to (iii).
(2) The identity management service provider or trust service
provider, as the case may be, shall be liable for loss caused to
the subscriber or to the relying party due to a failure to comply
with its obligations under this section.
(3) Notwithstanding anything contained in subsection (2), the
provider shall not be liable to a subscriber for loss arising from
the use of the service to the extent that-
(a)
such use exceeds the limitations on the purpose or
value of the transaction for which the service is used; and
(b)
such limitations are contained in the arrangement
between the provider and the subscriber.
(4) Notwithstanding anything contained in subsection (2), the
provider shall not be liable to a relying party for loss arising
from the use of the service to the extent that-
(a)
such use exceeds the limitations on the purpose or
value of the transaction for which the service is used; and,
(b)
the provider has complied with its obligations under
clause (f) of subsection (1) with respect to that transaction.
(5) Every identity management service provider or trust service
provider, as the case may be, shall comply with the financial,
managerial, operational, technical, and information security
measures as may be prescribed by the Central Government.
Obligations of
subscribers
13.
Every subscriber to an identity management service or trust
service shall notify the respective service provider, using the
means provided by the service provider or otherwise using
reasonable means, if-
(a)
the subscriber knows that the subscriber’s identity
credentials or the data or means used for access to or use
of the trust service have been compromised; or,
(b)
circumstances known to the subscriber give rise to a
substantial risk that the subscriber’s identity credentials or
the data or means used for access to or use of the trust
service may have been compromised.
Notification of
identity
management
service and trust
services
14. (1)The Central Government or any authority notified by the
Central Government in this behalf may, subject to the provisions of
this Bill, notify any identity management service or trust service,
taking into account relevant circumstances, including those
specified in this Chapter.
(2) The Central Government or the authority referred to in sub-
section (1) shall maintain and publish a public list of identity
management services, trust services, and their respective
providers notified as reliable under sub-section (1).
Electronic Trust
Services
15. (1) Where a law requires a signature of a person, or provides
consequences for the absence of a signature, that requirement
shall be deemed to have been met in relation to a data message if
a reliable method in accordance with Section 11 is used, -
(a)
to identify the person; and
(b)
to indicate the person’s intention in respect of
the information contained in the data message.
(2) Where a law requires a legal person to affix a seal, or
provides consequences for the absence of a seal, that
requirement shall be deemed to have been met in relation to a
data message if a reliable method in accordance with Section
11 is used, -
(a)
to provide reliable assurance of the origin of
the data message; and,
(b)
to detect any alteration to the data message
after the time and date of affixation, apart from the
addition of any endorsement and any change that
arises in the normal course of communication,
storage and display.
(3) Where a law requires a document, record, information or
data to be associated with a time and date, or provides
consequences for the absence of a time and date, that
requirement shall be deemed to have been met in relation to a
data message if a reliable method in accordance with Section
11 is used,
(a) to indicate the time and date, including by reference to
the time zone; and
(b) to associate that time and date with the data message.
(4) Where a law requires a document, record or information to
be retained, or provides consequences for the absence of
retention, that requirement shall be deemed to have been met
in relation to a data message if a reliable method in accordance
with Section 11 is used,-
(a)
to make the information contained in the data
message accessible soas to be usable for
subsequent reference.
(b)
to indicate the time and date of archiving and
associate that time and date with the data message.
(c)
to retain the data message in the format in
which it was generated, sent or received, or in
another format which can be demonstrated to detect
any alteration to the data message after that time
and
date,
apart
from
the
addition
of
any
endorsement and any change that arises in the
normal course of communication, storage and
display; and
(d)
to retain such information, if any, as enables
the identification of the origin and destination of a
data message and the time and date when it was
sent or received.
(5) Where a law requires a document, record or information to
be delivered by registered mail or similar service, or provides
consequences for the absence of delivery, that requirement
shall be deemed to have been met in relation to a data
message if a reliable method in accordance with Section 11 is
used, -
(a)
to indicate the time and date when the data
message was received for delivery and the time and
date when it was delivered.
(b)
to detect any alteration to the data message
after the time and date when the data message was
received for delivery to the time and date when it
was delivered, apart from the addition of any
endorsement or information required by this section,
and any change that arises in the normal course of
communication, storage and display; and,
(c)
to identify the sender and the recipient.
(6) Where a law requires website authentication, or provides
consequences for the absence of website authentication, that
requirement shall be deemed to have been met if a reliable
method in accordance with Section 11 is used,-
(a) to identify the person who holds the domain name for
the website; and,
(b) to associate that person with the website.
CHAPTER IV
MISCELLANEOUS
Cross-border
recognition
16. (1) An electronic trade document shall not be denied legal
effect, validity or enforceability on the sole ground that it was
issued or used outside India.
(2) The result of electronic identification or the use of an identity
management service, credential, or trust service provided
outside India shall have the same legal effect in India, if the
method used offers,-
(a)
at least an equivalent level of assurance or
reliability, as the case may be, where the assurance or
reliability levels recognised by India and the foreign
jurisdiction are identical; or,
(b)
a substantially equivalent or higher level of
assurance or reliability, in all other cases.
(3) An identity management system, identity management
service, identity credential or trust service shall be presumed to
satisfy sub-section (2), if the Central Government or any
authority notified by it in this behalf has determined that the
method used offers an equivalent level of assurance or
reliability, as the case may be, having regard to the relevant
provisions of this Bill and as per prescribed guidelines.
Provided that the Central Government may, by notification in
the Official Gazette, recognise specific foreign digital trade
documentation frameworks, identity management systems, or
trust services as equivalent for the purposes of this Bill,
including under any bilateral, plurilateral or multilateral
arrangements, and such recognition shall be binding on all
authorities recognised under any law for the time being in force.
Protection of
action taken in
good faith
17. No suit, prosecution or other legal proceedings shall lie against
the Central Government or any authority appointed under this Bill
in respect of anything which is done or intended to be done or any
action taken in good faith under this Bill or any rules or regulations
made thereunder.
Evidentiary
value of
electronic trade
documents and
trust services
18. (1) Subject to sub-section (2), an electronic trade document
issued or transferred using a reliable method shall be presumed to
be authentic and shall be admissible as evidence in any legal
proceeding, including civil, commercial or regulatory proceedings,
in accordance with the provisions of the Bhartiya Sakshya
Adhiniyam, 2023.
(2) The presumption under sub-section (1) may be rebutted by
evidence showing that the electronic trade document or trust
service is not authentic or has been materially altered, unless
such
alteration
occurred
in
the
normal
course
of
communication, storage, or display and is verifiably logged.
(3) Where any law requires a trade document or signature to be
presented, produced or retained for evidentiary purposes, such
requirement
shall
be
deemed
to
be
satisfied
if
the
corresponding electronic trade document or trust service
complies with the requirements specified under this Bill and any
rules made thereunder.
(4) For the purposes of sub-section (1), a reliable method shall
be deemed to include digital signatures or electronic records
authenticated in accordance with the provisions of the
Information Technology Act, 2000 or certified by a trust service
provider notified under this Bill.
Power to make
rules
19. (1) The Central Government may, by notification in the Official
Gazette, make rules to carry out the provisions of this Bill.
(2) In particular, and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the
following matters, namely: -
(a)
standards for reliability, security and operation of
electronic trade documents, identity management services
and trust services;
(b)
procedures, standards, or criteria for the notification,
supervision, certification, recognition, or accreditation of
reliable identity management service providers and trust
service providers as specified in the Second Schedule,
including those recognised by the Controller of Certifying
Authorities or any other competent authority under any law
for the time being in force;
(c)
the form and manner in which documents specified in
the First Schedule may be issued, transferred or dealt with
in electronic form, including those recognised by the
Controller of Certifying Authorities under the Information
Technology Act, 2000 and the rules made thereunder, or by
any other competent authority under any law for the time
being in force;
(d)
the manner and procedure for resolution of disputes
arising under this Bill, including the appointment or
designation of an Authority, officer, or agency by the Central
Government for such resolution, through mechanisms as
may be prescribed.
(e)
any other matter which is required to be, or may be,
prescribed under this Bill.
Amendments to
certain Acts
20. (1) In the First Schedule of the Information Technology Act,
2000, Sl. No. 1 shall be omitted.
(2) The Negotiable Instruments Act, 1881 shall be amended in
the following manner, namely: —
(a)
In section 4, after the words "in writing", the
words "or in electronic form" shall be inserted;
(b)
In section 5, after the words "in writing", the
words "or in electronic form" shall be inserted;
(c)
In section 13, after Explanation (iii), the
following Explanation shall be inserted, namely: —
Explanation (iv)— For the purposes of this section, a
promissory note, bill of exchange, or cheque includes
such instrument in both physical and electronic form.
(d)
In section 14, after the words "transferred to
any person", the words “in whatever form, whether
physical or electronic" shall be inserted.
(3) The Indian Stamp Act, 1899 shall be amended in the
following manner, namely: —
(a) In sub-section (14) of section 2, the following
Explanation shall be inserted, namely: —
Explanation— For the purposes of this section, the term
"instrument" shall also include an electronic trade document
as defined in clause (c) of section 2 of The Digital Trade
Facilitation Bill, 2025.
SCHEDULE
THE FIRST
SCHEDULE
DOCUMENTS TO WHICH THE BILL SHALL APPLY
THE SECOND
SCHEDULE
LIST OF RELIABLE IDENTITY MANAGEMENT SERVICE
PROVIDERS AND TRUST SERVICES PROVIDERS
*******
