Under the Foreign Trade Policy, imports are generally permitted unless they are classified as:
- Prohibited
- Restricted
- Permitted only through a State Trading Enterprise
- Free but subject to a policy condition, registration, quality standard or approval under another law
The import policy applicable to a product is determined by its eight-digit ITC (HS) code under Schedule I of the ITC (HS).
A product classified as “Restricted” can be imported only against a valid authorisation or permission issued by DGFT, or in accordance with a specific procedure notified by the Government. This principle is prescribed under Paragraph 2.08 of the Foreign Trade Policy 2023.
Importers should not rely only on the general description of the product. Two commercially similar products may have different import policies because of differences in composition, technical specifications, form, intended use or ITC (HS) classification.
Is an Import Authorisation required for your product?
An Import Authorisation may be required where:
- The relevant ITC (HS) code is specifically marked “Restricted”.
- Import is allowed only to an actual user unless with the relaxation from DGFT.
- Import requires the recommendation or NOC of a technical ministry.
- The item is second-hand, refurbished or reconditioned and falls within a restricted category.
- The import policy is linked to the composition, purity, value, end use or technical characteristics of the product.
A product may also be “Free” under the DGFT policy but subject to BIS registration, a Quality Control Order, WPC approval, CDSCO registration, environmental clearance or another product-specific requirement. Such approvals are not substitutes for a DGFT Import Authorisation where the ITC (HS) policy separately classifies the item as restricted.
Common products requiring restricted import approval
The list of restricted products changes through DGFT notifications. The exact requirement must therefore be verified against the current eight-digit ITC (HS) code and applicable policy condition.
Some commercially important categories include:
1. Gold, silver, platinum and precious-metal jewellery
Specified jewellery and articles made of gold, silver, platinum and other precious metals, including certain studded and unstudded jewellery falling under Chapter 71, may be subject to restricted import policy.
Recent policy changes have brought various forms of precious-metal jewellery and specified precious-metal products within the restricted category. Depending on the product, its composition and the applicable scheme, separate conditions may apply to:
- Gold jewellery
- Silver jewellery
- Platinum jewellery
- Jewellery studded with diamonds, pearls or precious stones
- Silver bars, grains, powders and semi-manufactured forms
- Articles of goldsmiths’ or silversmiths’ wares
- Precious-metal alloys
2. Refrigerant gases and ozone-depleting substances
Import of specified refrigerant gases and controlled substances is regulated under India’s obligations relating to ozone-depleting substances and climate protection.
The products may include specified:
- HCFC refrigerant gases
- HCFC-22 or R-22
- HCFC-141b
- Refrigerant blends containing controlled substances
- Other substances regulated under the Ozone Depleting Substances Rules
3. Second-hand and refurbished goods
The import policy for second-hand goods is different from the policy applicable to new goods.
Specified used, refurbished or reconditioned products may require an Import Authorisation, particularly where they are not freely importable second-hand capital goods or where environmental, safety or electronic-waste concerns are involved.
Potentially regulated products include:
- Refurbished laptops and computers
- Used servers and data-processing equipment
- Second-hand multifunction printers and photocopiers
- Used medical equipment
- Refurbished electronic equipment
- Second-hand machinery not qualifying for free import
- Used consumer goods and spare parts
The importer may need to submit a Chartered Engineer’s certificate, residual-life assessment, manufacturing year, refurbishment report, equipment photographs, serial numbers and confirmation regarding compliance with the E-Waste Management Rules and applicable BIS requirements.
4. Used tyres, waste tyres and rubber products
Import of used pneumatic tyres, waste tyres, tyre scrap and related rubber waste can involve both DGFT and environmental regulations.
Depending on the nature and intended use of the goods, the importer may require:
- DGFT Import Authorisation
- Permission under the Hazardous and Other Wastes Rules
- Approval or registration from the Ministry of Environment, Forest and Climate Change
- Central Pollution Control Board or State Pollution Control Board compliance
- Pre-shipment inspection and technical documentation
5. Chemicals, industrial gases and agrochemicals
Specified chemicals, chemical intermediates, industrial gases, pesticides and agrochemical products may be restricted or subject to end-use conditions.
Depending on the product, approvals may be required from:
- Ministry of Chemicals and Fertilizers
- Central Insecticides Board and Registration Committee
- Ministry of Environment, Forest and Climate Change
- Petroleum and Explosives Safety Organisation
- Central Drugs Standard Control Organisation
- Other technical or administrative ministries
6. Pharmaceutical ingredients and controlled substances
Specified active pharmaceutical ingredients, drug intermediates, narcotic or psychotropic substances and controlled chemicals may require a DGFT authorisation in addition to approvals under drug-control or narcotics laws.
The applicable route depends on the product, concentration, intended use and ITC (HS) classification. Importers should verify requirements involving CDSCO, the Narcotics Commissioner and other competent authorities before placing the purchase order.
7. Seeds, plants, livestock and animal products
Certain seeds, planting materials, live animals, livestock products and biological materials are restricted or subject to quarantine and sanitary requirements.
Approvals may involve:
- Department of Agriculture and Farmers Welfare
- Plant Quarantine authorities
- Department of Animal Husbandry and Dairying
- Animal Quarantine and Certification Services
- Genetic Engineering Appraisal Committee
- Wildlife or CITES authorities, where applicable
The species, country of origin, intended use and phytosanitary or health certification can materially affect import eligibility.
8. Waste, scrap and recyclable materials
Import of specified plastic waste, metal scrap, paper waste, electronic waste and recyclable materials may require environmental permissions, registration, inspection or DGFT approval.
The regulatory treatment depends on whether the material is:
- Reusable goods
- Production scrap
- Hazardous waste
- Non-hazardous recyclable material
- E-waste
- Material intended for energy recovery or disposal
A mere description as “scrap” is insufficient. The composition, contamination level, intended recycling process and environmental permissions must be examined before import.
DGFT application process for restricted imports
An application for restricted import authorisation is filed online with DGFT Headquarters in ANF 2M, together with the prescribed supporting documents.
The usual process involves:
Step 1: Product classification and policy review
The product is classified under the appropriate eight-digit ITC (HS) code. The corresponding import policy, policy conditions, DGFT notifications and requirements under other laws are reviewed.
Step 2: Identification of the approving authority
The relevant technical or administrative ministry is identified. Depending on the product, its NOC, recommendation or technical comments may be necessary before DGFT decides the application.
Step 3: Preparation of the application
The application is filed online in ANF 2M. A detailed justification is prepared explaining:
- Nature and specifications of the product
- Quantity and CIF value proposed to be imported
- Country of origin and foreign supplier
- Purpose and end use of the import
- Manufacturing or business requirement
- Past consumption and projected requirement
- Availability of domestic alternatives
- Technical or commercial necessity for import
- Compliance with product-specific regulations
Step 4: Technical ministry examination
DGFT may seek comments from the concerned ministry or technical authority. Queries raised by the authority must be addressed with appropriate technical and documentary support.
Step 5: Consideration by the Exim Facilitation Committee
Restricted import proposals may be placed before the Exim Facilitation Committee. The EFC includes representatives of the relevant technical ministries and normally meets once a month.
The Committee may approve, reject or defer the proposal. A case is frequently deferred where a technical NOC, clarification or supporting document remains pending.
Step 6: Issue and registration of authorisation
Once approved, the Import Authorisation is issued subject to the quantity, value, port, validity, actual-user condition and other conditions endorsed on it. The authorisation must be correctly reflected at Customs before clearance of the goods.
Actual-user condition
Under the Foreign Trade Policy, goods requiring an Import Authorisation can ordinarily be imported only by an actual user unless DGFT specifically dispenses with that condition.
A trader should therefore not assume that a restricted product can be imported for unrestricted resale. The proposed business model, end user, processing activity and subsequent transfer of the goods must be reviewed before applying.
Validity of an Import Authorisation
An Import Authorisation for restricted items is ordinarily valid for 18 months from the date of issue, unless DGFT or the EFC specifies a different period.
The date of import is generally determined with reference to the date of shipment or dispatch from the supplying country. The validity should therefore be monitored before the supplier ships the goods.
Can goods be shipped before the authorisation is issued?
Importers should obtain the required approval before shipment.
The facility for obtaining an authorisation after the goods have already been shipped or arrived is generally not available for restricted items unless DGFT specifically permits it. Shipping goods before approval can lead to detention, warehousing costs, demurrage, re-export or enforcement proceedings.
A regulatory review should ideally be completed before the purchase order is finalised.
How OSGAN Consultants can assist
OSGAN Consultants provides end-to-end professional support for restricted import proposals, including:
- ITC (HS) classification and import-policy review
- Identification of applicable DGFT notifications and policy conditions
- Regulatory feasibility assessment before shipment
- Identification of the concerned technical ministry
- Preparation and filing of ANF 2M
- Drafting of detailed commercial and technical justification
- Assistance in obtaining ministry NOC or recommendation
- Response to DGFT and technical-authority queries
- Representation before DGFT and the Exim Facilitation Committee
- Follow-up of deferred and pending applications
- Amendment, enhancement and revalidation of authorisations
- Customs registration and post-approval compliance support
- Advisory for restricted goods already shipped or detained by Customs
Our approach combines Foreign Trade Policy, Customs and product-specific regulatory requirements so that the application is presented as a complete import proposal rather than a routine portal filing.
Frequently Asked Questions
What is a DGFT restricted import licence?
It is an authorisation issued by DGFT permitting the import of a product classified as “Restricted” under Schedule I of the ITC (HS), subject to the conditions mentioned in the authorisation.
Which form is used for a restricted import application?
The application is filed online with DGFT in ANF 2M along with the prescribed documents and product-specific approvals.
Is DGFT approval guaranteed after filing the application?
DGFT examines the merits of the request, applicable policy, technical ministry comments and the importer’s justification.
How long does the approval process take?
There is no single timeline applicable to every product. The EFC normally meets once a month, but the actual time depends on the completeness of the application and receipt of comments or NOCs from the concerned ministry. Generally it takes 3-4 months time for the approval.
Can a trader import restricted goods?
Restricted goods requiring authorisation are ordinarily subject to the actual-user condition unless DGFT specifically dispenses with it. The precise policy condition must be checked before applying.
Is a ministry NOC required in every case?
Not in every case. The requirement depends on the product and policy condition. DGFT may nevertheless seek technical comments from the relevant ministry while considering the proposal.
Can OSGAN assist with an application already deferred by the EFC?
Yes. The case can be reviewed to identify pending ministry comments, documentation gaps or weaknesses in the justification. A supplementary submission and representation can then be prepared.
