WORLD TRADE  
ORGANIZATION   
G/LIC/N/3/IND/12 
27 September 2011 
 (11-4675) 
Committee on Import Licensing Original:   English 
   
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the 
Agreement on Import Licensing Procedures 
 
INDIA 
  The following communication dated, 21 September 2011, 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 y ears i.e. for a period 2009-2014.  The short term 
objective of the present five-year Foreign Trade Policy  of the Government of India is to arrest and 
reverse the declining trend of exports and to pr ovide additional support especially to those sectors 
which have been hit badly by recessi on in the developed world.    
 
 The two objectives of FTP are:  
 (a) India's exports of goods and services to reach US $ 500
2 billion by 2014. 
 (b) India's share in global trad e by 2020 to reach 4 per cent. 
 
 The category of imports consists of:  (i) pr ohibited 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 whic h 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 restric tion except for the restrictions indicated in the 
book titled ITC (HS) Classifications of Export and Im port 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.  
                                                      
1 See document G/LIC/3, Annex, for the Questionnaire. 
2 Department of Commerce has revised the target fr om original US$ 400 billi on to 500 billion recently. G/LIC/N/3/IND/12 
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  The restricted items are imported against specifi c import licences or in accordance with Public 
Notices/ Policy Circulars issued for this purpose.   Importability of an individual item can be dete rmined 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 eight-digit 
level so as to provide a distinct existence to certa in 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 considered to be 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 restricti on include live animals, including fish, planting 
material (seeds), stones, metal waste, radioac tive material, psychotropi c drugs, ozone depleting 
substances, arms and ammunition, explosives, pl astic waste, sandalwood, security printing paper, 
nuclear reactors and parts thereof, radio and te levision broadcast transmitters, communication 
jamming equipment, aircraft, including helicopt ers and items covered under  the Convention on 
International Trade in Endangered Species of W ild Fauna and Flora (CITES), Chemical Weapons 
Convention (CWC) or other similar do mestic/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 safety, security and the environment.  In respect of certain items, the cond itions for import have been specified in a general 
way in public notices issued for this purpose a nd the need for licensing in individual cases has been 
eliminated. 
 5. The Foreign Trade (Development and Regulati on) Act, 1992 and Foreign Trade (Regulation) 
Rules, 1993 provide statutory authority for administering 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 amendmen t 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 any public no tice 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 is prohibited.  Import or export 
prohibitions on Iran, the Democratic People's Republic of Korea and Côte d'Ivoire are  G/LIC/N/3/IND/12 
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  applicable as per the relevant UN Security C ouncil 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 Kimber ley 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 sa ndalwood 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 applicati ons for imports are published in the Handbook of 
Procedures, Vol. 1.  These are publications, whic h 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.  Th e 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 restrict ed through maintenance of quotas.  The periodicity 
of quotas for the two items mentioned above is annual. 
 III. This question is relevant only in cases wher e 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 Impor t Licences or in accordance with the Public 
Notices issued for this purpose.  Such items ar e subject to Actual User Conditions unless this 
condition is specifically dispensed with.  Th e names of the licence holders can be made 
available to the Government 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 licences menti oned 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.  Import licences are valid for the already 
shipped/arrived goods, provided customs duties ha ve not been paid and the goods have not 
been cleared by customs. 
 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, wher ever 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 the Licensing Committee.  There is no maximum limit 
to be allocated per applicant.  The applica tions are examined as soon as they are received. 
  IX. At present, no imports into India are bei ng made under bilateral quotas or export restraint 
arrangements. G/LIC/N/3/IND/12 
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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 fulfils 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 appr oval.  Only single administrative clearance is 
required. 
 8. The licensing authority may refuse to grant an import licence:  
(i) if the applicant has contravened any la w 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 thro ugh special or specialized agencies; 
 (iii) if any action against the applicant is pending under the Foreign Trade (Development 
and Regulation) Act, 1992, or rul es and orders made thereunder; 
 
(iv) if the applicant fails to pay any pe nalty imposed on him under the said Act;  and 
 (v) if the applicant is not eligible for a li cence in accordance with any provisions of the 
Export and Import Policy.  
  
 Paragraph 2.9 of the Foreign Trade Polic y (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 gr ant 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 grieva nces of exporters and importers.  The 
details are available at DGFT's website http://dgft.gov.in. 
 
Eligibility of importers to apply for licence 
9. All eligible persons, firms and institutions can  apply for a licence provided they hold a valid 
importer/exporter code number (IEC).  Documentational and other requireme nts for application for licence 
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 Ha ndbook of Procedures, Vol.1.  This form is also 
available on the DGFT website: http://dgft.gov.in. 
  G/LIC/N/3/IND/12 
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  11. The documents required upon actual importation are, besides the import licence, shipping 
documents and commercial invoices.  Pre-shipment In spection Certificate, Phyto-sanitary Certificate 
and Certificate of Origin are to be submitte d 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 incentive for EDI based 
application (para 2.70.3 of the Hand Book of Procedure Vol 1).  
 13. There is no deposit or adva nce payment requirement associated with the issue of import 
licences. 
 
14. An import licence shall normally be endorsed with a period of validity of 24 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.   18. No. 
 
19. Yes.  Foreign exchange is provided by th e authorized dealers for the import of goods.  
However, for the import of items appearing in the rest ricted category, an import licence is required.  
Normal banking procedures apply for obtaining foreign exchange.  
 
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