TaxTMI 
TaxTMI 
TaxTMI 
Request for comments on the draft of ‘The Digital Trade Facilitation Bill, 2026’
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....'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: [email protected]. 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) 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....
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....ologies 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 prov....
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....able 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 con....
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....ng 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 Trust Services 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 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, includin....
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....ntity 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....
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....nces 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 ....
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....d 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....
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.... 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 Author....