Basic information
Outline of the system
Import licensing regime in India is administered by the Directorate General of Foreign Trade under the Ministry of Commerce and Industry, Government of India. The Foreign Trade Policy 2015-2020, was notified in the Gazette of India vide Notification No.01/2015-2020 dated 1 April 2015 and subsequently revised and notified vide Notification No. 41/2015-2020 dated 5 December, 2017. 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 an authorisation 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.
Product coverage
(iv) Items which can be freely imported.
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.
Importability of an individual item can be determined as per the policy indicated against such item 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 at the eight-digit level so as to provide a distinct existence to certain products. This publication is very helpful in ascertaining the import policy of various products as covered by the respective Exim Codes in different Chapters.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
In respect of certain items, the conditions for import have been specified in a general way in public notices issued for this purpose.
Questions for products under restriction as to the quantity or value of imports
A quota system is generally not adopted.
The system applies to products originating from which country?
All of India's trading partners receive equal treatment in the issue of import authorisations.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The Foreign Trade (Development and Regulation) Act, 1992, as amended and Foreign Trade (Regulation) Rules, 1993 provide statutory authority for administering import licensing. Section 3 of the Foreign Trade (Development and Regulation) Act, 1992, as amended empowers the Central Government to make provisions for the development and regulation of foreign trade and Section 5 of the Act provides for formulating and announcing the Foreign Trade policy and amending the same from time to time.
Licensing is not a statutory requirement.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The relevant legislation provides full authority to the Government for this purpose.
Is it possible for the government to abolish the system without legislative approval?
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
All eligible persons, firms and institutions can apply for an authorisation provided they hold a valid importer/exporter code number (IEC)
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Documentation requirements
What information is required in applications?
What documents is the importer required to supply with the application?
Window of submission of an application
How far in advance of importation must application for a licence be made?
The authorisations are valid for goods already shipped/arrived at the customs' ports but not already cleared by customs.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
No.
Issuing the license
Can a licence be granted immediately on request?
Yes, if the applicant fulfils the legal requirements
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
The authorisations are valid for goods already shipped/arrived at the customs' ports but not already cleared by customs.
Which administrative body is responsible for approving application of licences?
The importer has to approach the DGFT for an import authorisation.
Must the applications be passed on to other organs for visa, note or approval?
The applicants need not approach other authorities for a visa note or approval. Only single administrative clearance is required.
Are there any other conditions attached to the issue of a licence?
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Fees
What is the amount of the fee or charge?
Details of fee are given in Appendix 2-K of Foreign Trade Policy which is available at DGFT's website (https://dgft.gov.in)
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement associated with the issue of import authorisations.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
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 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 an authorisation in accordance with any provisions of the Export and Import Policy.
Are the reasons for any refusal given to applicants?
Have applicants a right of appeal in the event of refusal to issue a licence?
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.
If so, to what bodies and under what procedures?
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 on the DGFT's website: https://dgft.gov.in
Importation
Are there any limitations as to the period of year during which importation may be made?
No.
What documents are required upon actual importation?
The documents required upon actual importation are
- import authorisation,
- shipping documents,
- commercial invoices,
- Pre-shipment Inspection Certificate, if the import policy mandates so
- Phyto-sanitary Certificate, if the import policy mandates so
- Certificate of origin, if the import policy mandates so.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
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.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Yes. There is no restriction on foreign exchange for import. Foreign exchange is provided by the authorized dealers for the import of goods.
Is a licence required as a condition to obtaining foreign exchange?
Is foreign exchange always available to cover licences issued?
Normal banking procedures apply for obtaining foreign exchange.
What formalities must be fulfilled for obtaining the foreign exchange?
Normal banking procedures apply for obtaining foreign exchange.