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IndiaTrade Policy

# DGFT Import Restrictions: Prohibited, Restricted, and STE Goods

Before importing into India, you must verify that your product isn't restricted, prohibited, or canalized. The DGFT maintains multiple lists controlling what can enter India — from arms and wildlife products to petroleum and fertilizers. Attempting to import restricted goods without proper licenses can result in cargo seizure and legal action.

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At a glance

Restriction types

4

Check steps

6

Schemes

5

## Import restriction categories

### Free Import (No Restriction)

Majority of goods can be imported freely without license

**Examples:** Most electronics, machinery, raw materials, consumer goods

**Requirement:** Standard customs clearance; no DGFT license needed

### Restricted Import

Requires specific license/permission from DGFT or concerned authority

**Examples:** Firearms, ammunition, explosives, certain chemicals, wildlife items

**Requirement:** Valid import license from DGFT or MoEFCC/WCCB

### Canalized Import

Can only be imported through designated State Trading Enterprises

**Examples:** Petroleum products, fertilizers, certain drugs, gold/silver (from some countries)

**Requirement:** Import only through authorized canalizing agency (STE)

### Prohibited Import

Banned for import under any circumstances

**Examples:** Wild animal parts, ivory, counterfeit currency, obscene materials, narcotics

**Requirement:** Cannot be imported; attempting import is offense

## How to check import policy for your product

01

Check ITC (HS) Code

Find correct HS code for your product in Customs Tariff

02

Check Schedule I (Standard Input Output Norms)

Verify if SION exists for your product under advance authorization

03

Check Schedule II (Export Policy)

Confirm export restrictions don't affect your import needs

04

Check Appendix 1 to ITC (HS)

Review prohibited/restricted imports list

05

Check Appendix 2 to ITC (HS)

Review canalized import items

06

Check Appendix 3 to ITC (HS)

Review STE items and authorized canalizing agencies

07

Check Current FTP Notifications

Review recent DGFT notifications for policy changes

## Commonly restricted items

### Arms and Ammunition

Ministry of Home Affairs / DGFT

Arms License required

### Explosives and Hazardous Chemicals

Ministry of Commerce / PESO

Import license + PESO clearance

### Wildlife Products

Director General of Foreign Trade / WCCB

CITES permit / WCCB NOC

### Pulses (certain varieties)

DGFT via quota

Import license with quantity restrictions

### Gold and Silver (from certain countries)

Canalized through nominated agencies

Import only through authorized banks/agencies

### Petroleum Products

Canalized through OMCs

Import only through authorized oil companies

## Key DGFT import schemes

### Advance Authorization

**Benefit:** Duty-free import of inputs for export production

**Key Condition:** Export obligation within 18-36 months

### DFIA (Duty Free Import Authorization)

**Benefit:** Transferable authorization based on SION

**Key Condition:** Standard Input Output Norms compliance

### EPCG (Export Promotion Capital Goods)

**Benefit:** Reduced duty (0-3%) on capital goods import

**Key Condition:** Export obligation 6x of duty saved within 6 years

### Replenishment License

**Benefit:** Import of inputs for deemed exports

**Key Condition:** For supplies against EPC contracts, SEZ units, etc.

### Project Import

**Benefit:** Concessional 5% duty on specified projects

**Key Condition:** Actual user condition; no sale for 5 years

## Checking procedure step-by-step

01

Identify exact HS Code for your product (8-digit for imports, 4-digit for export policy)

02

Check Indian Trade Classification (ITC) - Harmonized System (HS) Schedule

03

Review Appendices 1, 2, 3 for any restrictions applicable to your HS Code

04

Check current Foreign Trade Policy notifications for recent changes

05

Verify if any canalizing agency restriction applies

06

Apply for DGFT license if product is restricted and you intend to import

## Frequently asked questions

### How do I know if my product is restricted?

Check your product's HS Code against the Indian Trade Classification (ITC-HS) published by DGFT. Look specifically at: Appendix 1 (Prohibited), Appendix 2 (Restricted), and Appendix 3 (Canalized). The ITC-HS is updated periodically through DGFT notifications. You can also use the DGFT SCOMET portal or consult our Import Restriction Screener tool which cross-references current restrictions against your HS Code.

### Can restricted items ever be imported?

Yes, 'Restricted' means import is subject to license/permission, not that it's impossible. You must apply to DGFT (or concerned authority like MoEFCC for wildlife items) for an import license. Approval depends on: genuine need, end-use verification, applicant's compliance history, and national interest considerations. Some restricted items have annual quotas once exhausted, no more licenses issued that year.

### What is a canalizing agency?

A canalizing agency (State Trading Enterprise) is authorized by government to import specific commodities. For canalized items, you cannot import directly; you must purchase from the canalizing agency. Examples: Indian Oil, BPCL, HPCL for petroleum; MMTC, STC, banks for gold/silver. Canalization ensures government control over strategic/essential commodities and manages foreign exchange outflow.

### How does DGFT link export and import restrictions?

Some import schemes (Advance Authorization, DFIA, EPCG) are tied to export obligations. If you don't meet export targets, you must pay differential duty plus interest. DGFT monitors this through ICEGATE integration. Recent FTPs have rationalized some restrictions but export-import linkages remain for duty exemption schemes.

### What changed in recent Foreign Trade Policies regarding imports?

FTP 2023 continues liberalization trend: Most consumer goods are free for import; capital goods generally freely importable except specific negative list; focus shifted to export promotion and ease of doing business; digital interfaces (e-RCMC, online license applications) expanded. However, sensitive items (defense-related, dual-use, hazardous chemicals) remain restricted or subject to SCOMET controls.

**Disclaimer:** This guide reflects Foreign Trade Policy 2023 and current import restriction notifications. Restriction lists are updated periodically through DGFT notifications. Always verify current status before importing.

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