G/LIC/N/3/IND/23  
 
11 October 2023  
(23-6819) Page: 1/4 
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 3)  
INDIA 
The following communication, dated 9 October 2023, 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 (FTP) 2023  
was notified in the Gazette of India vide Notification No. 01/2023 dated 31 March 2023. The category 
of imports under the current Foreign Trade Policy consists of: (i) prohibited items, import of which 
are normally not allowed; (ii) restr icted 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 ar e 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 Facilitation Committee (EFC) which 
is constituted by members from concerned authorities of the Government of Indi a. 
  
Grant of registration number under IMS : The given systems are automatic licencing 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 Procedur es. 
  
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 f acilitate 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 Procedure s is also published to supplement 
the Foreign Trade Policy.  
 
 
1 See G/LIC/3, Annex, for the questionnaire.  G/LIC/N/3/IND/23  
 
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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 
interna tionally 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 publi cation 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 articles of gold, copra, live animals, including 
fish, plant ing material (seeds), Peas (Pisum  sativum) including Yellow peas, Green peas, Dun Peas 
and Kaspa, melon seeds, moong, certain 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 Weap ons 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 Mon itoring 
System (SIMS), Copper and Aluminium under Non -ferrous Import Monitoring System (NFIMS), Coal 
under Coal Import Monitoring System (CIMS) and Integrated circuits under Chip Import Monitoring 
System (CHIMS) and certain varieties of paper under Paper I mport 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 res pect 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 st atutory 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 ac cordance 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 
watermelon  seeds against HS Code is restricted to total imports of 35,000 MT up till 
31 October  2023. The "Free" import policy of Tur and Urad is extended for the period up  to 
31 March 2024 vide Notification No. 52/2015 -20 dated 28 December 2022.   
 
A statement, indi cating the actual imports of Tur, Moong, Urad and Peas for the fiscal year 
2022-23, is given below:  
  
 Quantity in Metric Tonnes  
Item  2022 – 23 Actual Imports  
Tur 890,051  
Moong  31,554  
Urad  523,887  G/LIC/N/3/IND/23  
 
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  Item  2022 – 23 Actual Imports  
Yellow Peas  539  
Green Peas  320  
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 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 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 are 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 Committee 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 onl ine 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 technic al 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 Ra te Quota process under the Import 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 Tra de 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 Regu lation, 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 
imported cannot be sold in the domestic market except, as per the provisions of FTP,  2023.   
  
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 must 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:  G/LIC/N/3/IND/23  
 
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  (i) if the applicant has contravened any law relating to customs or foreign exchange;  
(ii) if it has been decided by the C entral 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 an d 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 2.13 of the Foreig n Trade Policy (FTP) 2023) 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 2.60 of the FTP, the DGFT has a Citizen 's 
Charter and 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. Th e 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 Ha ndbook of Procedures, 2023, 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 ar e only required to import restricted items  
  
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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