Exports and Imports shall be ‘Free’ except when regulated by way of ‘prohibition’, ‘restriction’ or ‘exclusive trading through State Trading Enterprises (STEs)’ as laid down in Indian Trade Classification (Harmonized System) [ITC (HS)] of Exports and Imports. The restrictions can be on import or export based on the ITC (HS) code.
There are restrictions on imports and exports for various strategic reasons. There can be quantitative and qualitative restrictions on the imports and exports. If the goods are not prohibited, the government can allow the import/export the said goods. Any goods /service, the export or import of which is ‘Restricted’ may be exported or imported only in accordance with an Authorisation / Permission or in accordance with the procedure prescribed in a Notification / Public Notice issued in this regard.
The importer/exporter has to obtain an authorisation from the DGFT along with a NOC/permission from the concerned ministry. Additional procedures can be prescribed through the notification.