WORLD TRADE  
ORGANIZATION  G/LIC/N/3/IND/11 
27 July 2010 
 (10-4034) 
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, 27 July 2010,  is being circulated at the request of the 
Delegation of India. 
 
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Outline of system
 
 1. The short term objective of the present five-y ear Foreign Trade Policy of the Government of 
India is to arrest and reverse the declining tr end of exports and to provide additional support 
especially to those sectors which have been hit ba dly by recession in the developed world.   The 
policy objective is of achieving an annual export grow th rate of 15% with an annual export target of 
US$ 200 billion by March, 2011. In the remaining thr ee years of the Foreign Trade Policy up to 2014, 
India should be able to come back on the high export growth path of around 25% per annum. By 
2014, India is expected to double it exports of goods and services.   The long term policy objective is to double India's share in global trade by 2020.   The Policy is operative from 27 August, 2009 to 31 March 2014.   
 
 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 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/IND/11 
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  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 ag ainst specific 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, radio ac tive material, psychotropic 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.   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. Unl ess otherwise specially 
provided, import/export will be valid from/to a ny country. However, import/export of arms and 
related material from/to Iraq is prohibited.  Im port or export prohibitions on Iran, the Democratic  G/LIC/N/3/IND/11 
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  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 sep aration 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 sandalw ood under ITC (HS) Code No. 44039922.  However, 
import licensing is maintained for the smooth operati on 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 fo r 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 c onsidering 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 applicati ons 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.  
 X. As stated in reply 6.IX, no imports are made into India on the basis of export permits. G/LIC/N/3/IND/11 
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  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. 
 
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 require ments 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
 
 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 submitte d on importation if the import policy mandates so.  
 
12. Fees are charged on applications for licences acco rding to the value of imports to be made.  
 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.   G/LIC/N/3/IND/11 
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  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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