G/LIC/N/3/IND/16  
 
19 October  2016 
(16-5655) Page: 1/4 
Committ ee 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  - 2016 
INDIA 
The following communication, dated 11 October  2016, is being circulated at the request of  the 
delegatio n 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.  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 n authorisation  or in accordance with a public notice 
which indicates the conditions under which the items can be imported, (iii) t hose 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 ex cept 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 sys tem 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 restri cted 
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 
items 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 the eig ht-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 ascert aining 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 mat erial, psychotropic drugs, ozone depleting 
substances, arms and ammunition, explosives, plastic waste, sandalwood, security printing paper, 
nuclear  reactors and parts thereof, radio and television broadcast transmitters, communication  
                                                
1 See document G/LIC/3, Annex, for th e Questionnaire.  G/LIC/N/3/IND/16  
 
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  jamming equipment, ai rcraft, 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.  
 
Main licensing system s: 
 
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 licensing authority  
authorized by him on his behalf. The licensing authority may tak e 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 authorisation s. 
 
4.  The restrictions on imports are maintained only on grounds of 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 i ssued 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 administering import licensi ng. Section 3 of the Foreign 
Trade (Development and Regulation) Act, 1992 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 export and impor t policy and amend the same from time to time . 
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. However, imports of any rest ricted 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 Government for this 
purpose. The Government can abolish the licensing 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. 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, 
groups, undertakings and entities associated with Al Qaida  is prohibited .  Import or export 
prohibitions on Iran, the Democratic People's Republic of Ko rea 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). 
An import quota is being maintained on products c overed 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. The Handbook of Procedur es indicates in detail the 
procedures to be followed for making applications for import authorisation s. These are 
publications, which are available for sale and also available on the website:  
http://dgft.gov.in/ . Wide pu blicity is also given to 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 two items mentioned above is annual.  G/LIC/N/3/IND/16  
 
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  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 Authorisation s 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 qu ota restrictions on imports.  
 
V. The application for specific authorisation s mentioned in paragraph 2 above are processed 
after clearance by the Exim Facilitation Committee as per the prescribed time schedule for 
disposal.  
 
VI.   Import authorisation s, wh erever required, are issued within a specified period of validity, 
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 submi tted 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 Facilitati on 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 technic al criteria 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 r estraint 
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 authorisation s mentioned in paragraph 2 above are issued either with Actual User 
Condition or o n freely transferable condition. However, these authorisation s do not bear the 
condition that imported goods should be exported and not sold in the domestic market . 
 
7.(a) The authorisation s 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 appr oval. 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 Cen tral 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  G/LIC/N/3/IND/16  
 
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v. if the applicant is not eligible for an authorisation in accordance with any provisions of 
the Export and Import 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 at DGFT's website http://dgft.gov.in/ . 
 
Eligibility of importers to a pply for a licence  
9.  All eligible persons, firms and institutions can apply for a n authorisation  provided they hold a 
valid importer/exporter code number (IEC).  
 
Documentation and other requirements for application for license  
10.  The application form i ndicates 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 
website http://dgft.gov.in/ . 
 
13.  There is no deposit or advance payment requirement associated with the issue of import 
authorisation s. 
 
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 licensing authority on merit.  
 
15.-16.  No. 
 
17.  Authorisation s are only required to import restricted  items mentioned in paragraph 2 above. 
These authorisation s 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 appearing in the restricted category, an import authorisation  is 
required. Normal banking procedures apply for obtaining foreign exchange.  
 
 
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