G/LIC/N/3/IND/13  
 
16 September 2013  
(13-4889)  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 
INDIA 
 
The following communication, dated 10 September 2013, is being circulated at the request of the delegation of India. 
 
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Outline of system 
1.  The current Foreign Trade Policy is for five years i.e. for a period 2009-2014.  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 a licence 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 Import-Export Procedures is also published 
to supplement the Foreign Trade Policy.  In terms of Foreign Trade Policy (2009-2014), imports of 
all items, other than the prohibited and restricted items, are allowed without any restriction.  The 
restricted items are imported against specific import licences or in accordance with Public Notices/ Policy Circulars issued for this purpose. 
 
Importability of an individual item can be determined as per the policy indicated against such items in the ITC (HS) Classifications of Export a n d  I m p o r t  I t e m s .   T h i s  c o m p i l a t i o n  a d o p t s  t h e  
internationally accepted Harmonized System (HS) of Commodity Classifications as adopted by the 
Customs Cooperation Council (CCC), Brussels.  The code classification adopted is 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, plasti c waste, sandalwood, security printing paper, 
nuclear reactors and parts thereof, radio and television broadcast transmitters, communication 
jamming equipment, aircraft, including helicopters and items covered under  the Convention on 
                                               
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/IND/13 
 
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  International Trade in Endangered Species of Wi ld Fauna and Flora (CITES), Chemical Weapons 
Convention (CWC) or other similar domestic/international legislation.  Main licensing systems: 
 
Grant of import licence for restricted items:  An application for import of such items may be made 
to the Directorate General of Foreign Trade (DGFT) or any other licensing 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 licences.    
 
4.  The restrictions on imports are maintained only on grounds of protection of human health or safety; animal or plant life or health; security an d 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 and Foreign Trade (Regulation) 
Rules, 1993 provide statutory authority for admi nistering import licensing.  Section 3 of the 
Foreign Trade (Development and Regulation) Act, 1992 empowers the Central Government to make provisions on imports and exports.  An amendment was done by the Foreign Trade 
(Development and Regulation) Amendment Act, 2010, which came into force w.e.f. 
27 August 2010.  
Licensing is not a statutory requirement.  Howeve r, imports of any restricted item is possible 
either through an import licence or in accordance with the conditions specified in any public notice issued for this propose. The relevant legislation provides full authority to the Government for this 
purpose.  The Government can abolish the li censing system without legislative approval. 
 Procedures 
6.I.   A quota system is generally not adopted by the Government of India. However, wherever 
quotas are maintained, they are on MFN basis.  Th e 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 an y country. However, import/export of arms and 
related material from/to Iraq 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 diam ond (HS Code 710210, 710221 or 710231) from/to 
Venezuela is prohibited in view of voluntary se paration of Venezuela from the Kimberley Process 
Certification Scheme (KPCS).   An import quota is being maintained on products covered under ITC (HS) Code Nos. 25151100, 25151210, 25151220 and 25151290 (marble and similar stones).  A quota is also being maintained on imports of sandalwood under ITC (HS) Code No. 44039922.  
However, 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.  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.   
 
The Foreign Trade Policy remains valid for a specified period.  The current Policy is valid for five 
years from 27 August 2009 to 31 March 2014.  The Handbook of Procedures is also published simultaneously, indicating in detail the procedures to be followed for making applications for import licences. 
 
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 Licences 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 licence holders can be made available to governments and export promotion bodies of the exporting countries upon request. G/LIC/N/3/IND/13 
 
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  IV.  As already stated, India normally does not apply quota restrictions on imports. 
 V.  The application for specific licences mentioned in paragraph 2 above are processed after clearance by the Exim Facilitation Committee as per the prescribed time schedule for disposal. 
 
VI.  Import licences, wherever required, are issued  within a specified period of validity, currently 
24 months for shipment of goods.  It is up to the importer to import goods at any time during the 
validity period of the import licence.   
 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 licence 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 facilita tion 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 quotas or export restraint 
arrangements. 
 
X.  As stated in reply 6.IX, no imports are made into India on the basis of export permits.  
XI.  The licences mentioned in paragraph 2 above are issued either with Actual User Condition or 
on freely transferable condition.  However, these licences do not bear the condition that imported goods should be exported and not sold in the domestic market. 
 
7.  
a. The licences are valid for goods already shipped/arrived at the customs' ports but not 
already cleared by customs. 
b. Yes, if the applicant fulfills the legal requirements. 
c. No. 
d. The importer has to approach the DGFT for an import licence. 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 licence: 
 
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 on him under the said Act;  and 
v. if the applicant is not eligible for a licence in accordance with any provisions of the 
Export and Import Policy;  
vi. paragraph 2.9 of the Foreign Trade Policy (FTP) (2009-2014) 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 2.49 of the FTP the DGFT has a Citizen's Charter and also a Grievance Redressal Committee to address the grievances of exporters and importers.  The 
details are available at DGFT's website http://dgft.gov.in . G/LIC/N/3/IND/13 
 
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  Eligibility of importers to apply for a licence 
9.  All eligible persons, firms and institutions can apply for a licence 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 licence, 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 21-B of Hand Book of Procedures Vol-1 which is available 
at DGFT's website http://dgft.gov.in .  There are also fiscal incentives for EDI based application 
(paragraph 2.70.3 of the Hand Book of Procedure Vol 1). 
 13.  There is no deposit or advance payment re quirement associated with the issue of import 
licences. 
 
Conditions of licensing 
14.  As per paragraph 2.21 of the Handbook of Pr ocedures, an import licence shall normally be 
endorsed with a period of validity of 18 months.  The licence may be revalidated for a period of six 
months by the licensing authority on merit.  
15.-16.  No. 
 17.  Licences are only required to import restricted items mentioned in paragraph 2 above.  These licences are issued with Actual User Condition unless Actual User Condition is specifically dispensed 
with. 
 Other procedural requirement 
18.  No. 
 1 9 .   Y e s .   F o r e i g n  e x c h a n g e  i s  p r o v i d e d  b y  t h e authorized dealers for the import of goods.  
However, for the import of items appearing in the restricted category, an import licence is 
required.  Normal banking procedures apply for obtaining foreign exchange.   
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