G/LIC/N/3/IND/19  
 
4 November  2019 
(19-7463) Page: 1/5 
Committee on Import Licensing  Original: English  
 
 
  
REPLIES TO QUESTIONN AIRE ON IMPORT LICEN SING PROCEDURES1 
 
NOTIFICATION UNDER A RTICLE 7.3 OF THE AG REEMENT  
ON IMPORT LICENSING PROCEDURES  (2019) 
INDIA 
The following communication, dated 30 October  2019, is being circulated at the request of  the 
delegation of India. 
 
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Outline of system  
1.  The Foreign Trade Policy 2015 -2020, was notified in the Gazette of India vide Notification 
No.01/2015 -2020 dated 01 April 2015 and subsequently revised and notified vide Notificati on 
No. 41/2015 -2020 dated 05 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.  
 
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 Procedures 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 restricted 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 Cooperation 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 ide ntity, 
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 . 
 
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, sandalwood, security printing paper, nuclear 
                                                
1 See document G/LIC/3, Annex, for the Questionnaire.  G/LIC/N/3/IND/19  
 
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  reactors and parts thereof, radio and television broadcast transmitters, communication jamming 
equipment, aircraft, including helicopters and items cov ered 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.  
Main licensing systems:  
Grant of import authorisation for restric ted 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 licensing 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 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 notices 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 & regulation of foreign trade and Section 5 of the 
Act provide s 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 authorisation or in accordance with the co nditions 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 (HS) Code No. 44039922. Import Policy of Pigeon Peas (Cajanus 
Cajan)/Toor Dal, against HS Code 07136000, 07139010 and 07139090 was amended from 
“Free” to “Restricted” subject to an annual (fiscal year) quota of 2,00,000 Metric Tonnes [MTs]. 
This restriction will not apply to Government’s import c ommitments under any 
bilateral/regional Agreement/MoU. Similarly, import of Moong dal and Urad dal, against HS 
Code 07133100,  07139010 and 07139090  and 07133190,  07139010 and 07139090  were 
restricted to an annual (fiscal year) quota of 3,00,000  MTs. This r estriction will not apply to 
Government’s import commitments under any bilateral/regional Agreement/MoU. Accordingly, 
during the fiscal  year 2019 -20, 1,75,000  Lakh MTS of pulses  are being imported  from 
Mozambique under the MoU signed between the two Countries.  In 2018, import of peas under 
EXIM Code 07131000, 07139010 and 07139090 was restricted to total imports of 1,00,000 
MT for the fiscal year 2018 -19.A statement, indicating the quota allocated for import of Toor, 
Moong, Urad and  Peas for  the fisca l years  2018-19 and 2019 -20 and actual imports, is given 
below:  
Quantity in Metric Tonnes  
Item 2018-19  2019-20  
Allocation  Actual Import  Allocation  Actual Import (up  to 19.09.2019)  
Toor 2,00,000  5,31,000  4,00,000  1,15,000  
Moong    1,50,000  84,000  1,50,000  38,000  
Urad 1,50,000  4,90,000  1,50,000  95,000  
Peas 1,00,000  8,51,000  1,50,000  4,47,000*  
Total 6,00,000  19,56,000  8,50,000  6,95,000  
 * Though  the annual quota for Peas for the financial year 2019 -20 is only 1,50,000  MTs and no  quota 
 was released up  to 19 September 2019, the actual imports of Peas during  the financial year  
 2019-20 [up to 19 September 2019] were 4,47,000  MTs, because of many Court cases where 
 importers have got relief to import, from various Courts of India.  G/LIC/N/3/IND/19  
 
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  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 procedur es to be followed for 
making applications for import authorisations. These are publications, which are available for 
sale and also available on the website: http://dgft.gov.in/ . Wide publicity is also given t o 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 1st April 2015, will remain in force till March 2020.  
 
II. Imports  into India are generally  not restricted  through  maintenance  of quotas.  The periodicity 
of quotas for the above items mentioned above is  annual.  
 
III.   This question is relevant only in cases where a quota system is maintained. A quota system 
is generally not operative in India. The restr icted items (other than those for which imports 
are prohibited) may be allowed against Specific Import Authorisations or in accordance with 
the Public Notices issued 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.  
 
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 schedule  for disposal.  
 
VI.   Import authorisations, whereve r required are issued within 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.   Import applications are submitted t o the Office of the DGFT, New Delhi or 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 Com mittee, wherever necessary, constituted for this purpose. There is a single 
administrative organ for considering these applications.  
 
VIII.  A quota system is normally not maintained in India. The import of restricted list items is 
allowed on technical cri teria 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.   At present, no imports into India are being made under bilateral quota or export restraint 
arrangements where export permits are issued by exporting countries, except for a specific 
situation explained at reply 6.X.  
 
X. Import of specified capital goods, raw materials and components from United States of 
Ameri ca (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,  some  authorisations  are subject 
to actual user condition wherein they cannot be sold in the domestic  market.  
 
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. 
 G/LIC/N/3/IND/19  
 
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  (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 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 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 Au thorities 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 availa ble at DGFT's website  http://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  normally  required  for 
processing the application. The application format fo r import of restricted items is given in 
Aayaa t-Niryaat Form (Import -Export Form) of the Handbook of Procedures, Vol.1. This form is also 
available on the DGFT website:  http://dgft.gov.in/ . 
 
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 th e 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  http://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.  
 
15.-16.  No. 
 
17.  Authorisations are only required to import restricted items mentioned in paragraph 2 above. 
These  authorisations  are issued  with Actual  User Condition  unless  Actual  User Condition  is specifically 
dispensed  with. 
 
Other procedural requirement  
18.  No. G/LIC/N/3/IND/19  
 
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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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