G/LIC/N/3/IND/22  
 
30 November  2022 
(22-8920) 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 2)  
INDIA 
The following communication, dated 23 November  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 the 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 no tice 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 c onsideration of the Exim Facilitation  Committee  (EFC)  which  is 
constituted  by members  from concerned  authorities of the Government of  India.  
 
Grant of registration number under IMS : The given systems are automatic registration systems 
wherein an importer is required to provide import item details 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 automatic import licensing 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 Import Items, or as indicated by any other provisions or law in force as amended from 
time to time. To facilitate the importation of 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.  
 
1 See G/LIC/3, Annex, for the questionnaire.  G/LIC/N/3/IND/22  
 
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  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 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, 
moong, cert ain variety of stones, metal 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,  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 covered 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 registration 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 (CIMS) and Integrated  circuits  under  Chip Import  
Monitoring  System  (CHIMS)  and certain  varieties  of paper under Paper Import Monitoring System  
(PIMS).  
 
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 the 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 
(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 the development  and regulation of foreign trade and Section 5 
of the Act provides for formulating and announcing the Foreign Trade policy and amending 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 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 maintaine d on imports of 
sandalwood under ITC (HS) 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 Se ptember 2019] . During the 
fiscal year 2021 -2022, 200,000 MTs of pigeon peas  are being  imported  from Mozambique  
under  the MoU signed  between  the two Countries. Also, during the fiscal year 2021 -2022, 
MoU with Mozambique for import of 200,000 MTs of pigeon peas, MoU with Malawi for import 
of 50,000 MTs of Tur and MoU with  Myanmar  for import  of 250,000  MT of Urad and 100,000  
MT of Tur was notified.  Vide S.O.1858 (E) d ated 15 May 2021, the import policy for Moong 
was revised from "Restricted " to "Free" with immediate effect and for the period up  to 
31 October  2021. The "Free" import policy of Moong was extended up  to 31 March 2022 vide 
Notification S.O. 5317 (E) dated 20  December 2021 and was subsequently revised to 
"Restricted " vide Notification S.O. 624 (E) dated 11  February 2022. Vide S.O.1858 (E) d ated 
15 May 2021, the import policy for Tur/Pigeon Peas; Currently, import of tur and urad is "Free" 
till 31  March 2023. A  statement, indicating the  actual  imports  of Toor, Moong,  Urad and Peas G/LIC/N/3/IND/22  
 
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  for the fiscal year 2020-21 2021-22 and actual imports, is given  below:  
 
Quantity in Metric Tonnes  
 
Item  2021 – 22 Actual Imports  
Toor 840,464  
Moong  195,807  
Urad 611,486  
Yellow Peas  251.69  
Green Peas  594.36  
Other  00 
 
II. For any Imports of "restricted" items into India, where there is a fixed quota to  be allotted,  
the 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 m aintained 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 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. Where the quotas a re to be allotted, detailed procedure 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 Commit tee as per the prescribed time schedule 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 G eneral 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 Imp ort Management 
System, on the DGFT website. 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 DG FT 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 s ubject to Actual User Conditions, the goods 
imported cannot be sold in the 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.  G/LIC/N/3/IND/22  
 
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  (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 admin istrative 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  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 a license  
 
10. The application  form indicates  the type of information  and the documents  required  for processing 
the application. The application format for the 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 documents required upon actual importation  are: 
 
(1) Import authorisation;  
(2) Shipping documents;  
(3) Commercial invoices;  
(4) Pre-shipment Inspection Certificate if the import policy mandates so;  
(5) Phyto -sanitary Certificate if the import policy mandates so;  
(6) 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.  
 
15.-16. No.  
 
17. Authorisations are only required to import restricted ite ms  
 G/LIC/N/3/IND/22  
 
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  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 categ ory, an import authorisation is required. Normal banking procedures apply for 
obtaining foreign  exchange.  
 
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