Authorization Procedure for Import or Export of Restricted Goods

Deepak Purohit

Deepak Purohit

Published on: Nov 21, 2025

Megha Makharia

Updated on: Nov 21, 2025

★★★★★(3 Ratings)

136

Introduction

Indian foreign trade regime, governed by the FTP 2023 and HBP 2023, establishes ‘Free’ trade as the default, moving away from absolute licensing. For goods classified as ‘Restricted’ (e.g., specific second-hand machinery or certain chemicals), trade is conditional, strictly requiring a special Authorisation or Permission as per Para 2.08.

This restriction mechanism ensures government oversight is maintained for sensitive items concerning national security, environment, and public health, while the HBP 2023 streamlines the process through digital applications and clear procedures to uphold Ease of Doing Business (EoDB) principles.

Applicable Provisions

1. Para 2.01, 2.08, 2.10, 2.15, and 2.18 of Foreign Trade Policy, 2023.
2. Para 2.03(a), 2.03(b), 2.04, 2.05(a), 2.05(b), 2.06, 2.18, and 2.20 of Handbook of Procedures, 2023.

Mandatory Requirements

• Valid Importer-Exporter Code (IEC)
• Determine item’s 8-digit ITC(HS) Code and its ‘Restricted’ status
• All documents must be in English or Hindi, or be accompanied by a self-certified translated copy.

Procedure to be Followed (Step-by-Step)

1. Obtain Importer-Exporter Code:
   Importer/ Exporter shall obtain valid Importer-Exporter Code (IEC) in case they do not already possess the same.
   (Please refer Article on Import-Exporter Code – https://www.lawrbit.com/article/importer-exporter-code/, for detailed information)
2. Authorization for Import-Export of Restricted Items:
   Importer/ Exporter shall submit the application exclusively via the official DGFT website (https://dgft.gov.in), using the below stated forms, along with specifications, Quantity, Unit of Measurement, Country of Origin, and the item’s CIF Value in both Indian and Foreign Currency and fees which is generally 0.1% of the CIF value (minimum INR 500, maximum INR 1,00,000):
   • ANF-2M for Import of Restricted Items
   • ANF-2N for Export License of Restricted Items

   Note:

   • Application Fee Receipt or proof of successful online payment must be uploaded while making application.
   • If the application is incomplete, the Competent Authority will reject it with stated reasons and the applicant has 90 days to rectify and reopen the application, or it will be deemed withdrawn.
   • Proforma Invoice (PI) are required from the foreign supplier for imports, detailing the goods and transaction.
3. Authorization by DGFT:
   Upon successful scrutiny, the Directorate General of Foreign Trade (DGFT), will issue the necessary Authorization or Permission.

   Note: Issued Authorization will have a defined validity period as under:

   • 18 months for imports and
   • 24 months for exports.
4. Revalidation of Authorization:
   Authorization for import or export of restricted items, may be revalidated, on merits for a period of six months from date of expiry of validity by the Directorate General of Foreign Trade Headquarters (DGFT- HQ).

   Note:

   • Export Authorization, may be revalidated, on merits for a period of six months at a time and maximum up to 12 months by the DGFT (HQ).
   • Revalidation of Authorization/Duty Credit Scrip shall also be allowed without charging any fee for the period of delay (the period for which authorisation/scrip holder was unable to utilise the same) or six months, whichever is less.