WORLD TRADE  
ORGANIZATION  G/LIC/N/3/IND/9 
3 September 2007 
 
 (07-3694) 
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, 23 August 2007 , is being circulated at the request of the 
Delegation of India 
 
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  Outline of system
 
 
1. The principal objectives of the present five-year  Foreign Trade Policy of the Government of 
India are as follows: 
 Trade is not an end in itself, but a means to  economic growth and national development.  The 
primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic 
activity.  The Foreign Trade Policy is rooted in this belief and built around two major objectives.  
These are:  (i) To double India’s percentage share of global merchandise trade within the next five years; 
and 
 
(ii) To act as an effective instrument of economic growth by giving a thrust to employment 
generation. 
  The Policy is operative from 1 September, 2004 to 31 March 2009.  As part of this policy, 
India has already removed all the quantitative rest rictions on imports being earlier maintained on 
account of balance of payment reasons.  Apart fro m this, India has also reviewed the position of 
quantitative restrictions on Non-BOP items.  
The restricted category of imports consists of :- (i) prohibited items, import of which are 
normally not allowed and (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.    
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/IND/9 
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  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 a nd Import Items, 2004-2009 or any other provisions 
or law in force.  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 (2004-2009), 
imports of all items, other than restricted items, is  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 dete rmined as per the policy indicated against such 
items in the ITC(HS) Classifications of Export and Import Items, 2004-2009.  This compilation 
adopts the internationally accepted Harmonized System (HS) of Commodity Classifications as 
adopted by the Customs Cooperation Council (CCC), Br ussels.  The code classification adopted is the 
eight-digit level so as to provide a distinct existen ce to certain products.  For the purposes of distinct 
identity, these codes are called Exim Codes indi cating 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 respec tive Exim Codes in different Chapters. 
 
 The items presently under restriction include live animals, including fish, planting material (seeds), stones, metal waste, radio active material , psychotropic drugs, ozone depleting substances, 
arms and ammunition, explosives, plastic waste, sandalwood, security printing paper, nuclear reactors 
and parts thereof, radio and television broad cast transmitters, communication jamming equipment, 
aircraft, including helicopters and items covered und er CITES 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 re presentatives 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.  G/LIC/N/3/IND/9 
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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. 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.  Import/export prohibitions on Iran and the Democratic 
People’s Republic of Korea are applicable as per the relevant UN Security Council Resolutions. An 
import quota of 1.95 lakh MT for the year 2007-08  is being maintained on products covered under 
ITC (HS) Code Nos. 25151100, 25151210, 25151220 and 25151290 (marble and similar stones).  A 
quota of 5,000 cubic mtr is being maintained on imports of sandalwood under ITC (HS) Code 
No. 44039922.  However, import licensing is mainta ined for the smooth operation of the imports of 
restricted items.  The requirements for filing a pplications 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 1 September 2004 to 31 March 2009.   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 Import Licences or in accordance wi th 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 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 th e importer to import goods at any time during the 
validity period of the import licence.  Import licen ces are valid for the already shipped/arrived goods, 
provided customs duties have 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 rou ting licence applications through the sponsoring 
authorities has been dispensed with .  Such applications are now considered by an Exim Facilitation 
Committee, wherever necessary, cons tituted 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 applications are examined as soon as they are received. 
 G/LIC/N/3/IND/9 
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  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. 
 
XI. The licences mentioned in paragraph 2 above are issued either with Actual User Condition or 
on freely transferable condition.  However, th ese 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 shippe d/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 Govern ment 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 pe nalty imposed on him under the said Act;  and 
 (v) if the applicant is not eligible for a licen ce 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 th e Handbook of Procedures, Vol.1, 2004-2009. 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.  
  G/LIC/N/3/IND/9 
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  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 24months.  The 
licence may be revalidated for 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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