G/LIC/N/3/IND/17  
 
12 April 2018 
(18-2225) Page: 1/4 
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  - 2017 
INDIA 
The following communication, dated 6 April  2018, 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 Notification 
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 allo wed, 
(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 impo rts 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, o ther 
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 authorisat ions or in accordance wit h 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 compilat ion 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 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.  
  
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, 
                                                
1 See document G/LIC/3, Annex, for the Questionnaire.  G/LIC/N/3/IND/17  
 
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  nuclear reactors and parts thereof, radio and television broadcast transmitters, 
communication  jamming equipment, aircraft, including helicopters and items covered under t he 
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 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. Th e 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 only on grounds of protection o f 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 indi vidual 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 (Developme nt 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 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 authorisation or in accordance with the conditions specified in any public notice 
issued for this propose. The relevant legisl ation 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. Unless otherwise specially  provided, 
import/export will be valid from/to any country. However, import/export of arms and related 
material from/to Iraq and trade with Islamic State in Iraq and the Levant [ISIL, also known 
as Daesh], Al Nusrah Front [ANF] and other individuals, group s, undertakings and entities 
associated with Al Qaida is prohibited. Import or export prohibitions on Iran, the Democratic 
People's Republic of Korea and Côte d'Ivoire are applicable as per the relevant UN Security 
Council Resolutions. The import/export of  rough diamond (HS Code 710210, 710221 or 
710231) from/to Venezuela is prohibited in view of voluntary separation of Venezuela from 
the Kimberley Process Certification Scheme (KPCS). A ceiling is being maintained on imports 
of sandalwood under ITC (HS) Cod e 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 lakh MTs. This restriction 
will not apply to Govern ment’s import commitments under any bilateral/regional 
Agreement/MoU. Similarly, import of Moong dal and Urad dal, against HS Code 07133100 
were restricted to an annual (fiscal year) quota of 3 lakh MTs. This restriction will not apply 
to Government’s impo rt commitments under any bilateral/regional Agreement/MoU. 
Accordingly, during the fiscal year 2017 -18, 1.25 lakh MTS of pulses are being imported 
from Mozambique under the MoU signed between the two Countries. However, import 
licensing is maintained for t he 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 applic ations 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 to 
the Foreign Trade Policy through the  media.  
 
 G/LIC/N/3/IND/17  
 
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  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 two 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 restricted 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 a uthorisation 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, wherever required, are issued within a specified period of validi ty, 
currently 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 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 Committee, 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 criteria fixed by Exim facilitation Committee. There is no m aximum 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 
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 authorisa tions do not bear the 
condition that imported goods should be exported and not 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. 
 
(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;  G/LIC/N/3/IND/17  
 
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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 a ny 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 pers on 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 a ddress the grievances of exporters and importers. The 
details are available 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 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:  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 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 
websit e 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 o f 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. 
 
19.  Yes. Foreign exchange is provided by the authorized dealers for the import of goods. 
However, for the import of items appe aring in the restricted category, an import authorisation is 
required. Normal banking procedures apply for obtaining foreign exchange.   
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