WORLD TRADE  
ORGANIZATION  G/LIC/N/3/IND/6 
5 January 2004  
 
(04-0008) 
Committee on Import Licensing Original:   English 
   
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the Agreement on Import Licensing Procedures  
 
INDIA 
 
 
 The following submission, dated 9 December 2003, is being circulated at the request of the 
Delegation of India.  
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Outline of system
 
 1. The principal  objectives of the present five-year  Export and Import Policy of the Government 
of India are as follows:  
(i) To facilitate sustained growth in exports to a ttain a share of at least 1 per cent of global 
merchandise trade; 
(ii) to stimulate sustained economic growth by providing access to essential raw materials, 
intermediates, components, consumabl es and capital goods required for augmenting 
production and providing services; 
(iii) to enhance the technological strength and efficiency of Indian agriculture, industry and 
services, thereby improving their competitive strength while generating new employment opportunities, and to encourage the attainment  of internationally accepted standards of 
quality; and  
(iv) to provide consumers with good quality goods and services at internationally competitive 
prices while at the same time creating a level playing field for the domestic producers. 
 
 The Policy is operative from 31 March 2002 to Marc h 2007.  As part of this policy, India has 
already removed all the quantitative restrictions on imports being earlier maintained on account of 
balance of payment reasons.  Apart from this, I ndia has also reviewed the position of quantitative 
restrictions on Non-BOP items. 
 
 The restricted category of imports consists of (i) prohibited items, import of which is not 
allowed under any circumstances and (ii) restricted items, imports of which are allowed against a 
licence or in accordance with a pu blic notice which indicates the c onditions under which the item can 
be imported. 
 
Purposes and coverage of licensing
 
 2. Capital goods, raw materials, components, consumables, spares, intermediates, packing 
material, parts, accessories, instruments and othe r goods may be imported without any restriction 
except to the extent that such imports are regulat ed by the restrictions indicated in the book titled 
ITC(HS) Classifications of Export and Import Item s, 2002-2007 or any other provisions or law in 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/IND/6 
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force.  However, to facilitate the importation of the restricted items, an import licensing system has 
been adopted.   The policy and procedures governing import of various items is given in the Export and 
Import Policy which is valid for a specified pe riod.  The Handbook of Import-Export Procedures is 
also published to supplement the Export and Import Policy.  In terms of Export and Import Policy, 
2002-2007  import of all items other than those restricted indicated in the book titled ITC(HS) 
Classifications of Export and Import Items, 2002-2007  is allowed without any restriction.  The 
restricted items are imported against specific impor t licences or in accordance with Public Notices for 
this purpose. 
 
 However, importability of an individual item can be determined as per the policy indicated 
against such items in the ITC( HS) Classifications of Export and Import Items, 2002-2007.  This 
compilation adopts the internationally accepte d Harmonized System(HS) of Commodity 
Classifications as adopted by the Customs Cooperation Council(CCC), Brussels.  The code 
classification adopted is eight-digit level so as to pr ovide a distinct existence to certain products.  For 
the purposes of distinct identity, these codes are called Exim Codes indicating import policy of the 
goods against such codes/products.  This publication is considered to be helpful in ascertaining the 
import policy of various products as covered by the respective Exim Codes in different Chapters. 
  However, to facilitate import of the restri cted items the import licensing system has been 
adopted.  Importers who are willing to avail themselves of these facilities are subject to licensing. 
 Main licensing systems
 
 Grant of import licence for restricted items
:  An application for import of such items may be made to 
the Directorate General of Foreign Trade (DGFT) or  any other licensing authority authorized by him 
on his behalf.  The licensing authority may take the assistance and advice of a licensing committee.  
The licensing committee will consist of re presentatives of technical authorities. 
 3. All of India’s trading partners receive MFN treatment in the issue of import licences.    
 
4. The restrictions on imports are maintained only on grounds of safety, security and environment.  
In respect of certain items, the conditions for im port have been specified in a general way in 
public notices issued for this purpose and the n eed for licensing in individual cases has been 
eliminated. 
 
5. The Foreign Trade (Development and Regulati on) Act, 1992 and Foreign Trade (Regulation) 
Rules, 1993 provide statutory authority for administering import licensing.  Section 3 of Foreign Trade (Development and Regulation) Act, 1992 empowers the Central Government to make 
provisions on imports and exports.   Licensing is not a statutory requirement.  Howe ver, import of any restricted item is possible 
either through an import licence or in accordance w ith any public notice issued for this propose.  
Legislation has given full authority to the Governme nt for this purpose.  The Government can abolish 
the licensing system without legislative approval.  Procedures
 
6.I. A quota system is not adopted by the Government of India.  However, import licensing is 
maintained for smooth operation of the import of rest ricted items.  Formalities for filing applications 
for imports are published in the Handbook of Proc edures, Vol. 1.  These are editions, which are 
available for sale and also available on, website: http://www.nic.in/eximpol .  Wide publicity is also 
given to the Export and Import Policy through the media.  A quota system is not maintained so the  G/LIC/N/3/IND/6 
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question of allocating a quota amount to each country does not arise.  However, the quantity and value 
of imports to be made from different countries are not published as all countries receive MFN status;  
the only exception is Iraq on account of UN sanctions.    The Export and Import Policy is announced at th e beginning of the financial year and remains 
valid for a specified period.  The current Policy is valid for five years from April 2002 to March 2007.  
The Handbook of Procedures is also published simulta neously indicating in detail the procedures to 
be followed for making applications for import licences.  II. Imports into India are not restricted through maintenance of quotas. 
 
III. This question is relevant only in cases where a quota system is maintained and a quota system 
is not operative in India.  The restrictive items (o ther than those imports of which are prohibited) may 
be allowed against Specific Import Licences or in ac cordance with the Public Notices issued for this 
purpose.  Such items are subject to Actual U ser Conditions unless this condition is specifically 
dispensed with.  The names of the licence holders can be made available to the Government and 
export promotion bodies of the exporting countries upon request.  IV. As already stated India does not have quota restrictions on imports.  V. The application for special licences mentioned in paragraph 2.4 above are processed within 
the prescribed time period after clearance by the Exim Facilitation Committee as per prescribed time 
schedule for disposal.  VI. Import licences, wherever required, are issued  within a specified period of validity for 
shipment of goods.  It is up to the importer to import goods any time during the validity period of the 
import licence.  Import licences are valid for the already shipped/arrived goods provided customs 
duties have not been paid and the goods have not been cleared by customs.  VII. Import applications are submitted to the Office of the DGFT, New Delhi or its regional 
offices, as the case may be.  The practice of rou ting licence applications through the sponsoring 
authorities has been dispensed with .  Such applications are now considered by a Exim Facilitation 
Committee, wherever necessary, cons tituted for this purpose.  There is a single administrative organ 
for considering these applications.   VIII. No quota system is maintained in India.  The import of restricted list items is allowed on a 
first-come, first-served basis and past-performan ce basis by the licensing Committee.  There is no 
maximum limit to be allocated per applicant.  The track record and financial position of new 
importers is kept in mind while issuing the licences.   The applications are examined as soon as they 
are received.  IX. At present, no imports into India are bei ng made under bilateral quotas or export restraint 
arrangements.  
 
X. As stated in reply 6.IX, no imports are made into India on the basis of export permits. 
 XI. The licences mentioned in paragraph 2 above are issued either with Actual User Condition or 
freely transferable condition.  However, these licen ces do not bear the condition that imported goods 
should be exported and not sold in the domestic market. 
 7.(a) The licences shall be valid for goods alread y shipped/arrived at the customs’ port but not 
already cleared by the customs. 
 
(b) Yes, if the applicant fulfils the legal requirements. G/LIC/N/3/IND/6 
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 (c) No. 
 (d) The importer has to approach the DGFT for an  import licence.  The applicants need not 
approach other authorities for visa, note or approval.  Only single administrative clearance is 
required. 
 8. The licensing authority may refuse to grant an import licence:  (i) if the applicant has contravened any law relating to customs or foreign exchange; 
(ii) if it has been decided by the Central Govern ment to import through State Trading Enterprises 
and distribution thereof through special or specialized agencies; 
(iii) if any action against the applicant is  pending under the Foreign Trade (Development 
and Regulation) Act, 1992, or rules and orders made thereunder; 
(iv) if the applicant fails to pay any penalt y imposed on him under the said act;  and 
(v) if the applicant is not eligible for a licen ce in accordance with any provisions of the Export 
and Import Policy.   
 
 The aggrieved importer can file a representation with the Office of the DGFT.  The representation is treated  by the DGFT under the Grievance Redressal mechanism as provided in the 
Handbook of Procedures.  Eligibility of importers to apply for licence
 
 
9. All eligible persons, firms and institutions can  apply for a licence provided they hold a valid 
importer/exporter code number(IEC).  There is no syst em of registration of pe rsons or firms permitted 
to engage in importation.  
Documentational and other require ments for application for licence
 
 
10. The application form indicates the type of  information and the documents normally required 
for processing the application.  The application format for import of restricted items is given in Appendix 8 of the Handbook of Procedures, Vol.1, 2002-2007. 
 
11. The documents required upon actual importation are, besides the import licence:  shipping 
documents;  commercial invoices;  and cer tificates of origin, if required. 
 12. Fees are charged on application for licences accord ing to the value of imports to be made.  
The present rates are: Rs. 200.- where the value do es not exceed Rs. 50,000.-, and Rs. 2.- for every 
Rs. 1000.- or part thereof, subject to a maxi mum of Rs. 1.5 lakh (where the value exceeds 
Rs. 1 crore).  For application filed elect ronically, the maximum fee is Rs. 1 lakh.  
 13. There is no deposit or advance payment requirements associated with the issue of import licences. 
 
Conditions of licensing
 
 14. An import licence shall normally be endorsed with a period of validity of 12 months.  The licence may be revalidated on merits for such pe riod as the licensing authority may deem fit. 
 
15-16. No. 
  G/LIC/N/3/IND/6 
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17. Licences are only required to import restrict ed items mentioned in paragraph 2.4 above.  
These licences are issued with Actual Us er Condition unless it is dispensed with. 
 Other procedural requirements
 
 
18. No. 
 19. Yes.  Foreign exchange is provided by the au thorized dealers in foreign exchange for import 
of goods.  However, for import of items appearing in the restricted category, an import licence is required.  Foreign exchange is made available to  cover imports.  Normal banking procedures apply for 
obtaining foreign exchange. 
 
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