G/LIC/N/3/IND/20  
 
28 May 2021 
(21-4450) 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 0)  
INDIA 
The following communication, dated 13 May 2021, is being circulated at the request of the delegation 
of India. 
 
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Outline of systems  
1. 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 cu rrent 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.  
Purpose and coverage of licensing  
2. All items  may be imported  without  any restriction  except  for the restrictions  indicated  in the book 
titled ITC (HS) Classifications  of Export  and Import  Items,  or 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.  
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 Proced ures is also published to supplement 
the Foreign Trade Policy. In terms of Foreign Trade Policy (2015 -2020), imports of all items, other 
than the prohibited and restricted items, are allowed without any restriction. There are also few 
items which are restr icted for import only through State Trading Enterprises (STEs). The restricted 
items are imported against specific import authorisations or in accordance with Notifications/Public 
Notices issued for this purpose.  
Importability of an individual item 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 
Customs Cooperat ion Council (CCC), Brussels. The code classification adopted is at the eight -digit 
level so as to provide 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 very helpful in ascertaining the import policy of various products as covered by 
the respective Exim Codes in different  Chapters.  
 
1 See G/LIC/3, Annex, for the questionnaire.  G/LIC/N/3/IND/20  
 
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  Some of the items presently under restriction include live animals, including fish, planting material 
(seeds),  stones,  metal  waste,  radioactive  material,  psychotropic  drugs,  ozone  depleting  substances, 
arms and ammunition, explosives, plastic waste, certain new pneumatic tyres, sandalwood, security 
printing paper,  nuclear reactors and parts thereof, radio and television broadcast transmitters, palm 
oil, power tiller and components, colour television sets, communication jamming equipment, aircraft, 
including helicopters and items covered under the Convention on Inte rnational Trade  in Endangered  
Species  of Wild Fauna  and Flora (CITES),  Chemical  Weapons  Convention  (CWC) or other similar 
domestic/international  legislation.  
Main licensing systems:  
Grant of import authorisation for restricted items : An application for import of such items may be 
made  to the Directorate  General  of Foreign  Trade  (DGFT)  or any other  regional  authority  authorized 
by him on his behalf. The licensing authority may take the assistance and advice of a licensing 
committee. The li censing committee will consist of representatives of technical  authorities.  
3. All of India's trading partners receive MFN treatment in the issue of import  authorisations.  
4. The restrictions on imports are maintained on grounds as notified in Para graph  2.07 of Foreign 
Trade Policies and include protection of human health or safety; animal or plant life or health; 
security and  the environment.  In respect  of certain  items,  the conditions  for import  have been 
specified  in a general way in public notic es issued for this purpose and the need for licensing in 
individual cases has been  eliminated.  
5. The Foreign Trade (Development and Regulation) Act, 1992, as amended and Foreign Trade 
(Regulation)  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 foreign trade and Section 5 of 
the Act provides for formu lating 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 authorisation or in accordance with the conditions sp ecified 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 (HS) Code No. 44039922. The import of Pigeon Peas (C ajanus 
Cajan)/Toor Dal against HS Code 07136000, 07139010 and 07139090 was restricted to total 
imports of 400,000 MT for the year 2019 -20. This restriction was not to apply to Government 's 
import commitments under any bilateral/regional Agreement/MoU. Simi larly, import of Moong 
dal and Urad dal, against HS Code 07133190,  07139010, 07139090  and 07133110 were 
restricted to an annual (fiscal year) quota of 550,000 MTs for the year 2019 -20. This restriction 
was not to apply to Government 's import commitments un der any bilateral/regional 
Agreement/MoU. Accordingly, during the fiscal  year 2019 -2020, 175,000  MTs of pulses  were 
imported  from Mozambique under the MoU signed between the two countries.  In 2019, import 
of peas under EXIM Code 07131000, 07139010 and 07139090 was restricted to total imports 
of 150,000 MT for the fiscal year 2019 -20. The same limit of import for Toor, Moong, Urad 
and Peas is continued for the fiscal year 2020 -21. During the fiscal  year 2020 -2021, 200,000 
MTs of pulses  are being imported  from Mozambique under the MoU signed between the two 
Countries.  A statement, indicating the quota allocated for import of Toor, Moong, Urad 
and Peas for  the fiscal years  2018-19, 2019 -20 & 2020 -21 and actual imports, is given below:  
  G/LIC/N/3/IND/20  
 
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  Quantity in Metric T onnes  
Item 2018-19 2019-20 2020-21 
Allocation  Actual 
Import  Allocation  Actual 
Import  Allocation  Actual Import 
(up to 
21 August  2020) 
Toor 200,000  531,000  400,000   449,777  400,000  3,656  
Moong    150,000  84,000  150,000    69,439  150,000  8,871  
Urad 150,000  490,000   400,000   312,079   400,000  178,014  
Peas 100,000  851,000  150,000  666,700*  150,000  - 
Yellow Peas#      00 332 
Green Peas#      75,000  0 
Other#      75,000  0 
Total 600,000  1,956,000  1,100,000  1,497,995   1,100,000   
  
* Though  the annual quota for Peas for the financial year 2019 -20 was only 150,000  MTs the 
actual imports of Peas during  the financial year 2019 -20 were 666,700 MTs, because of many 
Court cases where importers have got relief to import, from various Courts of India.  
# The Finance Act, 2019 has deleted the HS code 0713 10 00 and has introduced new HS Codes 
0713 10 10 (Yellow Peas), 0713 10 20 (Green Peas) and 0713 10 90 (Other).  
Import licensing  is maintained for the smooth  operation of the imports of restricted items. 
The requirements for filing applications for imports are published in the Handbook of Procedures, 
Vol. 1. The Handbook of Procedures indicates in detail the procedures to be followed for making 
applications for import authorisations. Thes e are publications, which are available for sale and also 
available on the website: https://dgft.gov.in/CP/  Wide publicity is also given to the Foreign Trade 
Policy through the media.  
The Foreign Trade Policy remains  valid for a specified period. The current Policy, which came into 
effect on 1 April 2015, will remain in force till March 2021, as notified vide Notification 57/2015 -20 
dated 31  March 2020.  
II. Imports of "restricted " items into India are generally not re stricted through maintenance of 
quotas. However, where there is a fixed quota to be allotted, periodicity of such quotas (as 
for the items mentioned in I above) is mentioned in the Notification itself or an annual basis.  
III. This question is partly releva nt only in cases where a quota system is maintained as in 
paragraph  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 is sued for this purpose. Such items are subject to Actual User Conditions 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.    As already stated, India normally does not apply quota restrictions on imports. However, 
where the quotas are to be allotted, detailed procedure and timelines is laid out in 
Notification/Public Notices issued in this regard.  
V. The a pplication for specific authorisations mentioned in paragraph 2 above are processed after 
clearance by the Exim Facilitation Committee as per the prescribed time schedule for disposal.  
VI.   Import authorisations, wherever required are issued with a specif ied 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.   Import applications are submitted to the Office of the DGFT, New Delhi o r its regional offices, 
as the case may be. The practice of routing authorisation applications through the sponsoring 
authorities has been dispensed with. Such applications are now considered by an Exim 
Facilitation Committee, wherever necessary, constitut ed for this purpose. There is a single 
administrative organ for considering these applications.  G/LIC/N/3/IND/20  
 
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  VIII.  The import of restricted list items is allowed on technical criteria fixed by Exim Facilitation 
Committee. There is no maximum limit to be allocated per applicant. The applications are 
examined as soon as they are received.  
IX.   No import license is required for import of pulses from Mozambique into India under the 
bilateral quota.  
X. Import of specified capital goods, raw materials and components from Un ited 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 2 above are issued either with Actual User 
Condition or on freely transferable condition. However, these authorisations do not bear the 
condition that imported goods should be exported. However, where authorisation is subject 
to actual user conditions the goods im ported cannot be sold in domestic market except, as 
per the provisions of FTP, 2015 -2020.  
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 refuse 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 distr ibution 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 penalty imposed under the said Act;  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 right 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 at DGFT's website. https://dgft.gov.in/CP/  
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  norma lly required  for 
processing the application. The application format for import of restricted items is given in 
Aayaat -Niryaat Form (Import -Export Form) of the Handbook of Procedures, Vol.1. This form is also 
available on the DGFT website: https://dgft.gov.in/CP/  G/LIC/N/3/IND/20  
 
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  11.  The  documents  required  upon actual  importation  are, besides  the import  authorisation,  shipping 
documents  and commercial  invoices.  Pre-shipment  Inspection  Certificate,  Phyto -sanitary  Certificate 
and Certificate of Origin are to be submitted on importation 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/CP/ ) 
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.  
15.-16.  No.  
17.  Authorisations are only required to import restricted items mentioned in para graph 2 above. 
These  authorisations  are issued  with Actual  User Condition  unless  Actual  User Condition  is specifically 
dispensed  with. 
Other procedural requirement s 
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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