G/LIC/N/3/IND/21  
 
20 January 2022  
(22-0467) Page: 1/5 
Committee on Import Licensing  Original: English  
 
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES1 
NOTIFICATION UNDER ARTICLE 7.3 OF THE AGREEMENT ON  
IMPORT LICENSING PROCEDURES (202 1)  
INDIA 
The following communication, dated 17 January 2022, is being circulated at the request of the 
delegation of India.  
 
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Outline of systems  
1. Import licensing regime in India is administered by Directorate General of Foreign Trade under 
the Ministry of Commerce and Industry, Government of India.  The Foreign Trade Policy  2015-2020 
was notified in the Gazette of India vide Notification No.  01/2015 -2020 dated 1 April 2015 and 
subsequently revised and notified vide Notification No.  41/2015 -2020 dated 5 December 2017. 
The category of imports under the current Foreign Trade Policy consists of: (i) prohibited items, 
import of which are normally not allowed; (ii) restricted items, imports of which are allowed against 
an authorisation or in accordance with a public notice which indicates the conditions under which the 
items can be imported; (iii) those under state trading enterprises (STE) policy, the imports of which 
are permitted only through the designated STEs; and (iv) those which can be freely imported.  
 
Main licensing systems:  
 
Grant of import authorisation for Restricted items : An application for import of such items may be 
made online on the Directorate General of Foreign Trade (DGFT) website. Import authorizations for 
restricted items are issued after due consideration of the Exim Facilitatio n Committee (EFC) which 
is constituted by members from concerned authorities of the Gov ernment of India.  
 
Grant of registration number under IMS : The given systems are automatic registration systems 
wherein an importer is required to provide import item d etails and a prescribed registration fee for 
obtaining the registration number. Thereafter, the Importer is required to provide the Registration 
Number when filing the Bill of Entry to enable Customs to clear the consignment. The said processes 
are automat ic import licencing procedures in accordance with Article 2 of the Agreement on Import 
Licensing Procedures.  
 
Purpose and coverage of licensing  
2. Import restrictions, where imposed are indicated in the book titled ITC (HS) Classifications of 
Export and Im port Items, or as indicated by any other provisions or law in force as amended from 
time to time. To facilitate the importation of the restricted items, an import licensing system has 
been adopted.  
 
1 See G/LIC/3, Annex, for the questionnaire.  G/LIC/N/3/IND/21  
 
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  The policy and procedures governing imports of various items is given in the Foreign Trade Policy 
which is valid for a specified period. The Handbook of Procedures is also published to supplement 
the Foreign Trade Policy.  
Importability of an individual it em can be determined as per the policy indicated against such item 
in the ITC (HS) Classifications of Export and Import Items. This compilation adopts the 
internationally accepted Harmonized System (HS) of Commodity Classifications as adopted by the 
Custom s Cooperation Council (CCC), Brussels. The code classification adopted is at the eight -digit 
level to provide a distinct existence to certain products. This publication is very helpful in ascertaining 
the import policy of various products as covered by the  respective Exim Codes in different Chapters.  
Some of the items presently under restriction include live animals, including fish, planting material 
(seeds ), Peas (Pisumsativum) including Yellow peas, Green peas, Dun Peas and Kaspa, melon seeds,  
stones, met al waste, radioactive material, psychotropic drugs, ozone depleting substances, arms 
and ammunition, bio-fuels, mercury,  explosives, plastic waste, certain new pneumatic tyres, 
sandalwood, security printing paper, nuclear reactors and parts thereof, radio and television 
broadcast transmitters, agarbatti , palm oil, power tiller and components, colour television sets, gold 
in any form, other than monetary gold and silver in any form,  communication jamming equipment, 
aircraft, including helicopters and items c overed under the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora(CITES),Chemical Weapons Convention(CWC) or other 
similar domestic/international legislation.  
Import of certain items has been made subject to compulsory regist ration under Import Monitoring 
Systems (IMS). Some of the items covered under IMS are steel under Steel Import Monitoring 
System (SIMS), Copper and Aluminium under Non -ferrous Import Monitoring System (NFMIMS), 
Coal under Coal Import Monitoring System (CIM S) and Integrated circuits under Chip Import 
Monitoring System (CHIMS)  
 
3. All of India's trading partners receive equal treatment in the issue of import authorisations.  
4. The restrictions on imports are maintained on grounds as notified in Paragraph 2.07  of Foreign 
Trade Policy. In respect of certain items, the conditions for import have been specified in a general 
way in public notices issued for this purpose.  
5. The Foreign Trade (Development and Regulation) Act, 1992, as amended and Foreign Trade 
(Regu lation) Rules, 1993 provide statutory authority for administering import licensing. Section 3 of 
the Foreign Trade (Development and Regulation) Act, 1992, as amended empowers the Central 
Government to make provisions for development and regulation of forei gn trade and Section 5 of 
the Act provides for formulating and announcing the Foreign Trade policy and amend the same from 
time to time.  
Licensing is not a statutory requirement. However, import of any restricted item is possible either 
through an import a uthorisation or in accordance with the conditions specified in any public notice 
issued for this propose. The relevant legislation provides full authority to the Central Government 
for this purpose.  
Procedures  
6.I. A quota system is generally not adopted. However, wherever quotas are maintained, they are 
on MFN basis. The quantity and value of imports to be made from different countries are not 
published as all countries receive MFN status. A ceiling is being maintained on imports of 
sandalwood under ITC (H S) Code No. 44039922. The import of maize (feed grade) is subject 
to a TRQ allocated to eligible STEs as per para 2.61 HBP 2015 -20. [DGFT Trade Notice No. 25 
of 9 July 2019; DGFT Trade Notice No. 33/2019 -2020 of 19 September 2019]. The import of 
Pigeon Pea s (Cajanus Cajan)/Toor Dal against HS Code 07136000 was restricted to total 
imports of 400,000 MT for the year 2020 -21. This restriction was not to apply to Government's 
import commitments under any bilateral/regional Agreement/MoU. Similarly, import of Ur ad 
dal, against HS Code 07133110 were restricted to an annual (fiscal year) quota of 400,000 
MTs for the year 2020 -21. This restriction was not to apply to Government's import 
commitments under any bilateral/regional Agreement/MoU. During the fiscal  year 2 020-2021, 
200,000 MTs of pulses  are being imported  from Mozambique under the MoU signed between G/LIC/N/3/IND/21  
 
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  the two Countries.  A statement, indicating the quota allocated for import of Toor, Moong, Urad 
and Peas for  the fiscal year 2020 -21 and actual imports, is given  below:  
 Quantity in Metric Tonnes  
Item  2020 -21 
Allocation  Actual Import  
Toor 400,000  442,623  
Moong    150,000  81,990  
Urad 400,000  334,791  
*Yellow Peas  00 33,832  
Green Peas  75,000  0 
Other  75,000  12,500  
*  Though  the annual quota for Yellow Peas for the financial year 2020 -21 was nil, the actual imports of 
Yellow Peas during  the financial year 2020 -21 were 33,832 MTs, because of Court cases where 
importers have been given relief by various Courts of India.  
II. For any Imports of "restricted" items into India, where there is a fixed quota to be allotted, 
periodicity of such quotas is mentioned in the Notification itself or an annual basis.  
 
III. This question is partly relevant only in cases where a quota system is maintained as in 
paragraph 6. I. Otherwise, import of "restricted" items (other than those for which imports are 
prohibited) is allowed against specific Import Authorisations or in accordance with the Public 
Notices issued for this purpose. Such items are subject to Actual User Conditi ons unless this 
condition is specifically dispensed with. The names of the authorisation holders can be made 
available to governments and export promotion bodies of the exporting countries upon 
request.  
IV. Where the quotas are to be allotted, detailed pro cedure and timelines is laid out in the relevant 
Notification/Public Notices issued.  
V. The application for specific authorisations mentioned in paragraph 2 above are processed after 
clearance by the Exim Facilitation Committee as per the prescribed time s chedule mentioned 
in the relevant Notification/Public Notices issued.  
VI. Import authorisations, wherever required are issued with a specified period of validity, 
generally 18 months for shipment of goods. It is up to the importer to import goods at any 
time during the validity period of the import authorisation.  
VII. There is a single administrative organ for considering these applications. Import authorisation 
applications may be submitted online through the Directorate General of Foreign Trade (DGFT) 
Website. The applications are now considered by an Exim Facilitation Committee, wherever 
necessary, constituted for this purpose.  
VIII. The import of restricted list items is allowed on technical criteria fixed by the Exim Facilitation 
Committee. There is no  maximum limit to be allocated per applicant.  
IX. Applications for import of items under Preferential or MFN Tariff Rate Quota (TRQ) scheme 
shall be submitted online through e -Tariff Rate Quota process under the Import Management 
System, on the DGFT websi te. The online procedure for applications of TRQ imports has been 
notified vide DGFT Trade Notice No.40/2020 -2021 dated 4  February 2021. The request for 
TRQs is invited vide specific Trade Notices published on the DGFT Website from time to time. 
The allocation made is published on the DGFT website.   
X. Import of specified capital goods, raw materials and components from United States of 
America (USA)is subject to US Export Control Regulation, and US suppliers of such items are 
required to obtain an export authorization based on import certificate issued in India.  
XI. The authorisations mentioned in paragraph 6.II above are issued with Actual User Conditions, 
where applicable. Where authorisation is subject to Actual User Conditions, the goods 
importe d cannot be sold in domestic market except, as per the provisions of FTP, 2015 -2020.  G/LIC/N/3/IND/21  
 
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  7.(a)  The authorisations are valid for goods already shipped/arrived at the customs' ports but not 
already cleared by customs.  
(b) Yes, if the applicant fulfils the legal  requirements.  
(c) No. 
(d) The importer has to approach the DGFT for an import authorisation. The applicants need not 
approach other authorities for a visa note or approval. Only single administrative clearance is 
required.  
8. The licensing authority may r efuse to grant an import authorisation:  
i. if the applicant has contravened any law relating to customs or foreign exchange;  
ii. if it has been decided by the Central Government to import through State Trading Enterprises 
and distribution thereof through s pecial 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 penalty imposed under the said Ac t; and  
v. if the applicant is not eligible for an authorisation in accordance with any provisions of the 
Foreign Trade Policy.  
Paragraph 2.14 of the Foreign Trade Policy (FTP) (2015 -2020) clearly mentions that no person may 
claim an authorisation as a righ t and the DGFT or its Regional Authorities have the power to refuse 
to grant or renew the same. However, as per paragraph 2.59 of the FTP, the DGFT has a Citizen's 
Charter and also a Grievance Redressal Mechanism to address the grievances of exporters and 
importers. The details are available on the DGFT website : https://dgft.gov.in . 
Eligibility of importers to apply for a licence  
9. All eligible persons, firms and institutions can apply for an authorisation provided they hold a valid 
importer/exporter code number (IEC).  
Documentation and other requirements for application for license  
10. The application form indicates the type of information and the documents required for processing 
the application. The appli cation format for import of restricted items is given in Aayaat -Niryat Form 
(Import -Export Form) of the Handbook of Procedures, Vol.1. This form is also available on the DGFT 
website: https://dgft.gov.in . 
11. The docume nts required upon actual importation are:  
• Import authorisation  
• Shipping documents  
• Commercial invoices  
• Pre-shipment Inspection Certificate if the import policy mandates so  
• Phyto -sanitary Certificate if the import policy mandates so  
• Certificate of Origin if the import policy mandates so.  
12. Details of fee are given in Appendix 2 -K of Foreign Trade Policy which is available at DGFT's 
website ( https://dgft.gov.in ). 
13. There is no deposit or advance payment requirement associated with the issuance of import 
authorisations.  
Conditions of licensing  
14. As per paragraph 2.16 of the Handbook of Procedures,2015 -2020, an import authorisation shall  
normally be endorsed with a period of validity of 18 months. The authorisation may be revalidated 
for a period of six months by the regional authority on merit.  G/LIC/N/3/IND/21  
 
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  15.-16. No.  
17. Authorisations are only required to import restricted items mentioned in parag raph 2 above.  
Other procedural requirements  
18. No.  
19. Yes.  There is no restriction on foreign exchange for import. Foreign exchange is provided by the 
authorized dealers for the import of goods. However, for the import of items appearing in the 
restricted category, an import authorisation is required. Normal banking procedures apply for 
obtaining foreign exchange.  
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