DGFT Restricted Import Authorisation

Import Restricted Goods into India Legally with DGFT Authorisation

Importing a product that is classified as “Restricted” under India’s ITC (HS) Import Policy generally requires the applicable DGFT authorisation, permission or notified procedure before import.

An Importer Exporter Code (IEC) by itself does not give an importer permission to import every restricted product.

At Remind Legal, we assist businesses with the complete DGFT restricted import authorisation process from checking the product classification and eligibility to preparing the application, compiling supporting documents, filing the application online, responding to DGFT queries and reviewing the authorisation issued.

If you are planning to import restricted goods, the safest approach is to check the product’s ITC (HS) classification, policy condition, intended use and any product-specific regulatory requirements before placing or dispatching the shipment.

What Is a DGFT Restricted Import Authorisation?

A DGFT Restricted Import Authorisation is the permission required for importing goods that are classified as “Restricted” under the applicable ITC (HS) Import Policy, where the policy requires an authorisation or permission.

The legal framework is primarily based on the Foreign Trade (Development and Regulation) Act, 1992, Foreign Trade Policy (FTP) 2023, Handbook of Procedures (HBP), ITC (HS) classification and the relevant notifications, public notices and product-specific conditions.

Under FTP 2023, restricted goods may be imported only in accordance with the applicable authorisation, permission or procedure prescribed by DGFT.

This means that the first question is not simply: “Do I have an IEC?” The more important questions are: -

• What is the correct eight-digit ITC (HS) code?
• Is the product currently Free, Restricted, Prohibited or subject to an STE requirement?
• What conditions are attached to that particular policy entry?
• Is an import authorisation required?
• Does the Actual User condition apply?
• Are additional approvals required from another regulator?
• Are there product-specific notifications or exemptions?

A correct classification and policy review should therefore be completed before the shipment is arranged.

Do You Need DGFT Authorisation to Import Your Product?

If the applicable ITC (HS) policy entry classifies the goods as Restricted and requires authorisation, you generally need the applicable DGFT authorisation before importing.

However, not every import involving a controlled or regulated product follows exactly the same procedure.

Depending on the product, the applicable route may involve: -

• DGFT import authorisation;
• a specific permission or notified procedure;
• an exemption or dispensation;
• State Trading Enterprise (STE) requirements;
• registration or monitoring requirements;
• an approval or NOC from another government authority; or
• additional customs, technical, safety or sector-specific requirements.

Quick answer

• IEC alone: Not necessarily sufficient for restricted goods.
• Restricted product: Check the applicable ITC (HS) policy entry and conditions.
• Prohibited product: A normal restricted import authorisation does not override a prohibition.
• Additional regulatory approval: DGFT authorisation does not automatically replace other mandatory approvals.
• Shipment already arranged: Do not assume that a pending application permits importation.

How to Check Whether Your Product Is Restricted

The classification of the product is one of the most important parts of the process.

1. Identify the product precisely
   Prepare the commercial name, technical description, specifications, composition, model, grade, capacity and intended use.

2. Determine the correct ITC (HS) code
   The correct classification should be established before relying on the import policy status. A broad commercial description may not be sufficient where different specifications fall under different tariff or policy entries.

3. Check the applicable import policy
   Review the relevant ITC (HS) entry and determine whether the product is Free, Restricted, Prohibited or subject to an STE or other special requirement.

4. Read the conditions attached to the policy entry
   Do not stop after seeing the word “Restricted”. The conditions may determine who may import, whether an authorisation is required, permitted purpose or end use, quantity/value conditions, NOCs or recommendations, and the procedure to be followed.

5. Check subsequent notifications and public notices
   The position can change through subsequent government notifications, public notices, amendments or product-specific procedures.

6. Check other regulatory requirements
   Depending on the product, separate requirements may arise under customs, BIS, food safety, drugs and medical devices, environment, chemicals, plant quarantine, animal quarantine or other applicable laws.

Who Can Apply for Restricted Import Authorisation?

Eligibility depends on the particular goods and the conditions applicable to the relevant policy entry.

Applicants may include eligible manufacturers, businesses, institutions, organisations and other persons/entities permitted under the applicable policy or procedure.

However, the Actual User condition is important.

Where an import requires an authorisation, FTP 2023 provides that the Actual User alone may import the goods unless the Actual User condition is specifically dispensed with by DGFT.

Therefore, a business intending to import restricted goods purely for the resale should not assume that it is eligible merely because it possesses an IEC.

Example

Suppose a manufacturer needs a restricted raw material for its own manufacturing activity. The manufacturer may potentially qualify, subject to the applicable policy conditions.

A trader intending to import the same product only for resale may face a different eligibility position if the Actual User condition applies.

The answer must therefore be determined from the particular ITC (HS) entry and applicable conditions.

What Documents Are Required?

There is no single universal document list that applies identically to every restricted product. The exact requirements depend on the product, policy entry, applicant and DGFT’s examination of the application.

Applicant information

• IEC details;
• PAN and entity information;
• registered address;
• constitution of the business;
• details of proprietor, partners, directors or authorised persons, where applicable;
• contact details of the authorised/nodal person.

Product information

• product description;
• eight-digit ITC (HS) code;
• technical specifications;
• quantity;
• unit of measurement;
• country of origin;
• proposed supplier details, where required;
• proposed CIF value.

Business and end-use information

• purpose of import;
• intended use;
• manufacturing or consumption details, where applicable;
• justification for the proposed import;
• production/consumption information, where required.

Supporting regulatory documents

• industrial registration;
• manufacturing licence;
• sector-specific registration;
• NOC;
• recommendation from a competent authority;
• technical certificate;
• previous import details;
• supplier documents;
• purchase/order documents; and
• other supporting records requested by DGFT.

The correct approach is to prepare the checklist after reviewing the exact ITC (HS) policy entry and applicable procedure, rather than uploading documents simply because they appeared in another application’s checklist.

How to Apply for DGFT Restricted Import Authorisation

The restricted import authorisation process is handled electronically through DGFT’s Import Management System.

Step 1 Product and policy assessment: Determine the correct ITC (HS) code and confirm the applicable import policy.

Step 2 Eligibility assessment: Check the applicant’s eligibility, including the Actual User requirement where applicable.

Step 3 Prepare the application: Compile the product details, proposed quantity, value, country of origin, intended use and supporting documents.

Step 4 File the application online: Use the DGFT Import Management System and the prescribed application process/form for restricted imports.

Step 5 Pay the applicable government fee: The prescribed application fee is payable electronically in accordance with the applicable Appendix 2K provisions.

Step 6 DGFT examination: DGFT may examine the application and, depending on the case, seek clarification, documents, recommendations or comments from relevant authorities.

Step 7 Respond to deficiencies or queries: If DGFT raises a deficiency or seeks clarification, the applicant should respond through the prescribed online mechanism with clear and consistent information.

Step 8 Authorisation decision: If approved, carefully review the issued authorisation before arranging or proceeding with the import.

Check the issued authorisation for product description, ITC (HS) code, quantity, value, country, validity, port conditions, Actual User/end-use conditions and other conditions attached to the authorisation.

Is ANF-2M Still Relevant?

Yes, ANF-2M is the prescribed application form associated with restricted imports.

However, the DGFT system operates electronically. The DGFT-published ANF-2M itself states that the restricted-import application process is completely electronic and that the form is provided for reference rather than for submission as a paper or scanned application.

Applicants should follow the current DGFT online workflow rather than relying on an old offline process or an old screenshot of the portal.

DGFT Restricted Import Authorisation Fees

The government application fee is separate from professional consultancy charges.

Under the applicable Appendix 2K fee structure, an application for an import licence for a restricted item/permission/certificate is charged at ₹1 per ₹1,000 or part thereof of the applicable CIF value/duty-saved amount, subject to a minimum of ₹500 and a maximum of ₹1,00,000.

The applicable fee should always be checked at the time of filing because DGFT may amend its fee structure.

Example

If the applicable fee calculation is based on a CIF value of ₹25,00,000:

₹25,00,000 ÷ ₹1,000 = ₹2,500.

Therefore, the government application fee under that calculation would be ₹2,500.

This is only an illustration. The fee payable for an actual application should be calculated under the fee provisions applicable on the filing date.

Professional fees

Professional charges are separate from the DGFT government fee. They depend on product complexity, classification issues, supporting documents, regulatory approvals, technical authority involvement, DGFT queries, application preparation, follow-up requirements and amendment or revalidation work.

How Long Is a Restricted Import Authorisation Valid?

The normal validity period for an Import Authorisation for Restricted Items is 18 months from the date of issue, unless a different validity period is specified in the applicable case or authorisation.

The authorisation should be reviewed carefully before shipment.

An important point is that the date for reckoning import is generally linked to the shipment/dispatch of goods from the supplying country under the applicable HBP provisions, rather than simply the date on which the goods arrive at an Indian port.

Therefore, importers should not wait until the last moment to arrange shipment.

Can a Restricted Import Authorisation Be Revalidated?

Revalidation may be possible in accordance with the applicable HBP provisions and on the merits of the case.

The HBP 2023 provides for revalidation of an import authorisation for a period of six months from expiry in the circumstances and through the authority specified thereunder.

Revalidation should not be treated as automatic.

A pending revalidation request should not be assumed to have extended the validity of the existing authorisation. Where an authorisation is nearing expiry, obtain the appropriate and suitable approval before relying on the extended period.

Can the Quantity or Value Be Changed After Approval?

Do not exceed the quantity, value or other limits stated in the authorisation merely because the commercial requirement has changed.

Where an amendment is legally permissible, the appropriate amendment should be obtained through the prescribed DGFT process before relying on the revised terms.

The same principle applies to material changes in product description, specifications, quantity, value or end use.

A commercial change does not automatically become a legally authorised change.

Does DGFT Authorisation Replace BIS, FSSAI, CDSCO or Other Approvals?

No. A DGFT restricted import authorisation does not automatically replace other approvals required under Indian law.

Depending on the product, additional requirements may arise under BIS, FSSAI, CDSCO, Plant Quarantine, Animal Quarantine, environmental regulations, chemical regulations, Legal Metrology, telecommunications or electronics regulations, customs requirements, or other sector-specific laws.

The importer should therefore consider DGFT authorisation as one part of the import compliance process, not necessarily the only approval required.

What Happens If DGFT Raises a Query?

A DGFT query or deficiency does not necessarily mean that the application will be rejected.

It means that DGFT may require additional clarification, documents, justification or information.

A good response should be specific, factually accurate, consistent with the original application, supported by documents where necessary and submitted through the prescribed online process within the applicable time.

Where the query relates to classification, end use, technical specifications or regulatory requirements, the response should address the actual issue rather than simply repeating the original application.

Can You Import While the Application Is Pending?

Do not treat a pending application as an import authorisation.

If the applicable policy requires prior DGFT authorisation, the importer should obtain the required approval before proceeding with the import unless a specific legal provision expressly permits the proposed course.

FTP 2023 also restricts the general facility for subsequent clearance against an authorisation in the case of restricted goods unless DGFT specifically permits it.

For this reason, importers should ideally complete the regulatory assessment before shipment, not after the goods have already left the exporting country.

What Happens After DGFT Issues the Authorisation?

Approval is not the end of the compliance process.

Before using the authorisation, the importer should verify all conditions attached to it.

• authorised product;
• specifications;
• quantity;
• value;
• country of origin;
• validity;
• port requirements;
• Actual User condition;
• end-use requirements;
• certificates or NOCs;
• customs requirements; and
• record-keeping or reporting obligations.

The importer should ensure that the actual shipment corresponds with the authorisation. If there is a material difference, obtain the required approval or amendment before proceeding.

Why Choose Remind Legal for DGFT Restricted Import Authorisation?

Restricted import applications are not simply form-filling exercises.

A mistake in classification, product description, eligibility, end use or supporting documentation can result in queries, delay or an application that does not adequately address the applicable policy conditions.

Product & ITC (HS) Assessment
We review the proposed product, specifications and intended use to help identify the relevant ITC (HS) classification and import-policy position.

Eligibility Review
We assess the applicant’s position against the applicable requirements, including the Actual User condition where relevant.

Document Checklist
We prepare a product-specific checklist rather than relying on a generic list of documents.

Application Preparation
We assist with compiling the information and supporting material required for the DGFT application.

Online Filing Support
We assist with the prescribed electronic filing process.

DGFT Query Assistance
If DGFT seeks clarification or additional documents, we assist in preparing an appropriate response.

Authorisation Review
After approval, we can review the issued authorisation and explain its key conditions, validity and permitted scope.

Amendment & Revalidation Support
Where legally permissible, we can assist with amendment or revalidation requirements.

What You Should Send Us for an Initial Assessment

You do not need to write a long legal explanation. Send us: -

• Product name;
• Product photograph/catalogue, if available;
• Technical specifications;
• Proposed ITC (HS) code, if already identified;
• Quantity;
• Approximate CIF value;
• Country of origin;
• Supplier details, if available;
• Intended use;
• IEC details, if available; and
• Any existing DGFT correspondence or previous authorisation.

Our team can then identify the key compliance questions that should be addressed before filing.

Important: No Guaranteed Approval

DGFT authorisation is granted by the competent government authority.

Preparation or filing of an application does not create an automatic right to approval.

Remind Legal can assist with legal and procedural preparation, documentation, filing and responses, but cannot guarantee that DGFT will approve a particular application or grant authorisation for a particular quantity, value or product.

The final decision rests with the competent authority under the applicable law and policy.

Legal & Compliance Disclaimer

This page is intended for general information and service guidance. It does not constitute a legal opinion or case-specific advice.

The applicable requirements may depend on the exact product, ITC (HS) classification, specifications, intended use, applicant, country of origin, notifications, public notices, exemptions and other regulatory requirements.

DGFT policies, procedures, fees and portal processes may be amended from time to time. The applicable law and official DGFT requirements should be verified before filing an application or arranging shipment.

For a product-specific assessment, consult a qualified professional before taking a compliance-sensitive import decision.