To protect national security, maintain public order, and fulfill international commitments, the Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce and Industry, issues and administers essential guidelines, procedures, and control lists for the export of restricted items. These restricted items encompass various goods, technologies, materials, or equipment that necessitate special authorization or licensing before export.
According to Para 2.01 of the Foreign Trade Policy 2023, most Exports and Imports are deemed ‘Free,’ except when governed by ‘Prohibition,’ ‘Restriction,’ or ‘Exclusive trading through State Trading Enterprises (STEs).’ These restricted items fall under these categories and necessitate specific approvals prior to export.
Any goods or services subject to export restrictions can only be exported in line with an Authorization or Permission granted by the regulatory authority. This entails strict adherence to prescribed procedures as outlined in Notifications or Public Notices issued by the DGFT.
Certain goods or categories of goods may require product-specific compliances, policy conditions, or No Objection Certificates (NOCs) under relevant statutes. In such instances, the regulatory authority may notify additional documents necessary for export or import purposes.
Before initiating exports, it is essential for exporters to meticulously verify the export policy applicable to their product. If the product falls under the restricted category, obtaining the appropriate export license from the DGFT becomes crucial.
Acquiring an export license entails the submission of necessary documents and demonstrating strict compliance with relevant laws and regulations. The license serves as a formal authorization, ensuring that the exporter adheres to all necessary controls and is authorized to proceed with the export of the restricted item.
Exporting restricted items in India necessitates adherence to the guidelines issued by the DGFT to safeguard national security and uphold international commitments. By diligently following the licensing process, exporters can effectively navigate complexities and facilitate smooth export transactions, all while maintaining compliance with prevailing laws and regulations.
Osgan Consultants, backed by decades of expertise, is an ideal partner to provide businesses with expert guidance and support in obtaining export authorisation/licenses. Our comprehensive services and commitment to compliance excellence ensure timely and cost-effective solution, fostering business growth while staying in full compliance with the law.