[Home](/)/[Resources](/resources)/India Foreign Trade Policy 2023 IndiaTrade # India Foreign Trade Policy 2023: IEC Registration, DGFT, and Electronics Import-Export Rules India's Foreign Trade Policy 2023 is the regulatory foundation for all imports and exports, including electronics. Getting the IEC right and understanding DGFT procedures is the difference between smooth customs clearance and costly port holds. Copy Link[Share on WhatsApp](https://wa.me/?text=https%3A%2F%2Fkrono-labs.com%2Fguides%2Findia-foreign-trade-policy-2023) At a glance Policy FTP 2023 (effective April 2023) Administrator DGFT (Ministry of Commerce) IEC Mandatory for all importers/exporters Key scheme Advance Authorisation ## Core FTP 2023 mechanisms for electronics companies ### Import Export Code (IEC) Mandatory for any company importing or exporting from India. Issued by DGFT, the IEC is a 10-digit code linked directly to the company's PAN and GST registration. Without a valid IEC, customs will not clear inbound or outbound shipments — there is no grace period or temporary clearance mechanism. ### DGFT e-SANCHIT and online filing All import and export documentation is filed electronically via the DGFT trade portal. No physical document submission is required for most licences. e-SANCHIT allows upload of supporting documents that are then shared with Customs via ICEGATE, creating a paperless flow from licence application through to port clearance. ### Advance Authorisation Scheme Allows duty-free import of inputs used in export production. Relevant for contract manufacturers and hardware assemblers exporting finished goods — the scheme offsets duty on PCBs, components, and sub-assemblies used in the exported product. A Standard Input-Output Norm (SION) or self-declared norm governs the ratio of input to output. ### Steel Import Monitoring System (SIMS) and equivalent India runs import monitoring for specific product categories including electronics components. Some categories require advance registration before the import shipment arrives at port. Failure to pre-register triggers customs hold and financial penalties. Electronics importers should check the current SIMS notification list each time a new product category is sourced. ## How to set up trade compliance under FTP 2023 01 Obtain an Import Export Code (IEC) from DGFT — apply through the DGFT trade portal (dgft.gov.in) with PAN, bank details, and digital signature. IEC is issued within 24–48 hours for most applications and is valid for the lifetime of the company. 02 Link IEC with ICEGATE (the customs portal) for customs clearance and duty payment through SWIFT — both systems share data, reducing duplication between licence approvals and port-level clearance. 03 Classify your electronics import under the appropriate ITC(HS) code — India's Trade Classification based on the Harmonized System. Check the import policy for that code: Free, Restricted, or Canalized. Restricted goods need DGFT import licences; Canalized goods can only be imported through designated canalising agencies. 04 If importing restricted goods such as certain telecom equipment or encryption devices, apply for the relevant DGFT import licence or approval before placing the order with the overseas supplier. Customs will not release restricted goods without the licence. 05 Explore applicable FTP 2023 schemes to reduce landed cost — Advance Authorisation for duty-free inputs if manufacturing for export, or the EPCG (Export Promotion Capital Goods) scheme for capital equipment imports at concessional duty against export obligation commitments. ## Frequently asked questions ### Who needs an IEC in India? Any individual, partnership, LLP, or company that imports goods into India or exports goods from India requires a valid Import Export Code. There are very limited exemptions — primarily personal use imports and government-to-government transfers. For electronics, both direct importers and manufacturers importing components for assembly must hold an IEC in the importer's or manufacturer's name. ### What is the difference between a Free and Restricted import under FTP 2023? A Free import policy means the goods can be imported without any DGFT licence or approval — standard customs duty and BIS certification requirements still apply, but no separate import permission is needed. A Restricted import requires an import licence from DGFT before shipment. Some telecom and encryption products fall in the Restricted category. A Canalized import can only move through a government-designated canalising agency and is rare for electronics. ### How does the Advance Authorisation Scheme work for electronics manufacturers? Under Advance Authorisation, DGFT issues a licence that permits duty-free import of inputs (components, sub-assemblies, raw materials) used in manufacturing an exported finished product. The quantity of duty-free inputs is governed by a Standard Input-Output Norm (SION) published by DGFT, or by a self-declared norm for products without a SION. The exporter must meet the export obligation within 18 months and then redeem the licence. This is highly relevant for contract electronics manufacturers exporting to global OEMs. ### What is SIMS and which electronics products require advance import registration? SIMS — Steel Import Monitoring System — was originally for steel but India has extended import monitoring to other categories. Electronics-adjacent import monitoring applies to certain components and raw materials notified by the government. Companies must register the intended import on the relevant portal before the shipment departs the origin country. The registration is not a prohibition — it is a monitoring mechanism that allows the government to track import volumes. Failure to register before shipment results in customs holds at Indian ports. **Disclaimer:** Educational resource only. Regulatory requirements change and vary by product category. Consult an accredited test laboratory or qualified compliance engineer before making certification decisions. 🇮🇳 India roadmap for your product Every standard, document, and test that applies — free, no account required. See your free roadmap[ Want an expert to take your product through 🇮🇳 India compliance for you? One consultant from Krono's compliance team takes your product from requirements to legal sale, with a fixed quote before any work starts. See compliance services](/services) Learn this properly In-depth course that teaches the full process, not just this one answer. [Start the course — $149](/courses/04-bis-certification-for-electronics)[Prefer to read? Get the book — $24.99](/books/04-bis-certification-for-electronics) Related guides * [India BIS Laboratory RecognitionBIS laboratory recognition vs NABL accreditation for India CRS and ISI certification: how to find a recognized lab, foreign lab acceptance, and scheduling for BIS-backlogged IS standards.](/guides/india-bis-laboratory-recognition) * [India Semiconductor MissionIndia Semiconductor Mission (ISM): the Design-Linked Incentive (DLI) scheme for fabless chip designers, fab fiscal support, ICDC EDA access, and what ISM means for hardware importers.](/guides/india-semiconductor-mission) * [India MeitY Electronics PolicyMeitY electronics policy: SPECS capital expenditure incentive, National Policy on Electronics 2019, Preferential Market Access for government procurement, and PLI scheme interaction.](/guides/india-meity-electronics-policy) * [US ITAR and EAR Export ControlsUS ITAR vs EAR for electronics: USML vs Commerce Control List, ECCN classification, encryption controls, Consolidated Screening List obligations, and export compliance programmes.](/guides/us-itar-ear-electronics)