In May 2026, the Directorate General of Foreign Trade (DGFT) issued a notification requiring textile and apparel exporters to obtain independent third-party labour-compliance certification before shipment, effective 1 July 2026. This is separate from existing workplace audits and applies to all shipments above ₹50 lakh to OECD nations and select Asian markets.
The rule aims to align Indian exporters with buyer due-diligence requirements and reduce post-shipment compliance disputes. Smaller units and job-work arrangements face particular friction.
Market signals
All apparel and textile exporters must obtain certification from DGFT-empanelled auditors confirming compliance with India's Code on Occupational Safety, Health and Working Conditions (OSH Code) and minimum wage schedules. Shipments without certification will face customs hold and export-credit guarantee denial.
Major apparel importers (especially EU, UK, North America) now contractually require proof of labour audit before payment. Non-compliance risks order cancellation and loss of preferred-supplier status, forcing even smaller exporters to invest in certification.
Units relying on dispersed job-workers and sub-contractors now face auditor difficulty in verifying wage records and working hours across multiple locations, requiring centralised documentation and payroll systems by July 2026.
The DGFT notification of May 2026 creates a compliance gateway for textile and apparel exports above ₹50 lakh to OECD and specified Asian markets, effective 1 July 2026. Exporters must engage DGFT-empanelled third-party auditors (list published on DGFT website) and obtain labour-compliance certificates before customs clearance. Non-compliance attracts export denial and may trigger RBI scrutiny under anti-money-laundering (AML) frameworks if coupled with payment disputes. Vinayakam Consultants helps textile exporters map their current labour practices against OSH Code requirements, identify empanelled auditors, prepare audit-ready documentation, and structure job-work arrangements to survive third-party scrutiny — reducing customs delays and order cancellations.
Your action checklist
- Obtain the current list of DGFT-empanelled labour-audit firms from the DGFT portal (dgft.gov.in) and request quotations for a compliance audit by mid-June 2026.
- Gather and standardise payroll, attendance, and wage-register records for all direct and job-work employees; flag any gaps in OSH Code compliance (working hours, safety equipment, grievance redressal) now.
- For job-work units, create a centralised ledger of all sub-contractors and their workers; request wage slips and attendance from each and ensure they comply with state minimum-wage schedules.
- Schedule your first audit by 15 June 2026 to allow time for remediation before the 1 July deadline; do not assume your existing factory audits or buyer audits satisfy the DGFT requirement — they may not.
Frequently asked questions
From 1 July 2026, textile and apparel exporters must obtain independent third-party labour-compliance certification from DGFT-empanelled auditors before shipment, confirming compliance with India's OSH Code and minimum wage schedules.
All apparel and textile shipments above ₹50 lakh to OECD nations and select Asian markets must have certification. Shipments without it face customs hold and export-credit guarantee denial.
Non-compliant shipments will be held at customs and exporters will lose export-credit guarantees. Buyers may also cancel orders or revoke preferred-supplier status due to contractual audit requirements.