How to Get DGFT Import License in India

International trade plays a major and vital role in the India’s economic growth and with increasing globalisation, businesses are actively importing goods to meet market demand. However, before importing, it is crucial to understand the regulatory framework, especially the concept of an import license.

In India, the term “import license” is commonly used, but the official terminology is Import Authorisation, issued under the Foreign Trade framework. This guide provides a comprehensive, legally compliant understanding of import licensing in India.

What is an Import License in India?

In India, an import license is officially known as Import Authorisation (commonly referred to as Import License). It is a permission granted by the government to import goods that fall under the “restricted” category.

This authorisation is issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry.

Important: Not all goods require an import authorisation, only those specifically listed as “restricted.”

Legal Framework Governing Imports

Imports in India are regulated under the Foreign Trade Policy (FTP) 2023, along with the ITC (HS) classification system notified by the DGFT.

What is ITC (HS) Code?

The ITC (HS) Code (Indian Trade Classification – Harmonized System) is a classification system used to determine: -

• Import policy (Free / Restricted / Prohibited / Canalised)
• Applicable duties and regulations

Every product has a specific HS code and its import status depends on that code.

Is Import Authorisation Mandatory?

No, Import Authorisation is not mandatory for all imports.

Goods are classified into the following categories: -

1. Free Category
   Goods that can be imported without any licence.
   Examples: -

• Apparel and textiles
• Furniture
• Books
• Most consumer goods

2. Restricted Category
   Goods that require Import Authorisation from DGFT.
   Restriction applies only to specific items based on their ITC (HS) Code, not entire industries.

3. Prohibited Category
   Goods that cannot be imported under any circumstances.

4. Canalised Category
   Goods that can only be imported through designated government agencies.

What is IEC (Import Export Code)?

Before importing any goods, businesses must obtain an Import Export Code (IEC).

It is issued by the Directorate General of Foreign Trade and acts as a unique identification number for importers and exporters.

Key Features of IEC: -

• Mandatory for most commercial imports
• Lifetime validity
• Fully online application process

Even if Import Authorisation is not required, IEC is generally compulsory.

Exception: -

IEC is not required in certain cases, such as: -

• Personal imports (non-commercial use)
• Imports by government departments

When is Import Authorisation Required?

Import Authorisation is required when goods fall under the Restricted category as per the ITC (HS) Code.
These restrictions are imposed due to: -

• National security concerns
• Environmental protection
• Public health and the safety
• Trade regulation policies

Examples of Restricted Goods (Illustrative)

1. Electronics & Communication Equipment

• Drones and UAVs
• Specific wireless and the satellite devices

2. Defense and Security Items

• Arms and ammunition
• Explosives and surveillance equipment

3. Chemicals and Hazardous Substances

• Notified toxic chemicals
• Ozone-depleting substances

4. Pharmaceuticals and Drugs
   Certain drugs and substances require prior approval from the Central Drugs Standard Control Organization.

5. Food and Agricultural Products
   Certain food items must comply with the regulations which is set by the Food Safety and Standards Authority of India.

6. Wildlife and Animal Products
   Regulated under environmental laws and monitored by the Wildlife Crime Control Bureau.

7. Used Goods

• Second-hand machinery
• Used electronics

Note: Restrictions apply only to specific notified items under HS Codes.

Who Issues Import Authorisation?

Import Authorisation is issued by the Directorate General of Foreign Trade.

However, depending on the product, additional approvals may be required from: -

• FSSAI (Food products)
• CDSCO (Pharmaceuticals)
• BIS (Electronics certification)

Step-by-Step Process to Apply for Import Authorisation

Step 1: Obtain IEC
Register on the DGFT portal and then obtain your IEC

Step 2: Identify HS Code
Determine the correct and accurate ITC (HS) Code of your product.

Step 3: Check Import Policy
Verify whether the product is: -

• Free
• Restricted
• Prohibited

Step 4: Prepare Documentation

• IEC certificate
• PAN card
• Business registration proof
• Product details and specifications
• Purchase invoice or contract

Step 5: Apply Online
Submit the application through the DGFT portal.

Step 6: Pay Applicable Fees
Fees depend on the product category and government rules.

Step 7: Approval & Review
DGFT may consult other regulatory authorities before approval.

Documents Required

• IEC certificate
• PAN card
• Aadhaar card
• Business registration documents
• Import invoice
• Technical specifications (if applicable)

Processing Time

• Standard cases: 7–15 working days
• Complex cases: up to 3–4 weeks

Validity of Import Authorisation

• Generally valid for 12 months
• May vary depending on product category
• Extension may be allowed subject to conditions

Penalties for non-compliance

Importing restricted goods without the proper authorisation may lead to the serious consequences under the Customs Act, 1962, including: -

• Confiscation of goods
• Monetary penalties
• Legal proceedings

Import Authorisation vs IEC: Key Difference

Common Mistakes to Avoid

1. Ignoring HS Code Classification
   Incorrect and inaccurate classification may lead to compliance issues.

2. Assuming All Goods Are Free
   Always verify the ITC (HS) Code.

3. Incomplete Documentation
   Missing documents may delay or reject the applications.

4. Skipping Regulatory Approvals
   Some additional approvals (FSSAI, CDSCO, BIS) are usually required.
   
   

Benefits of Import Authorisation

• Ensures the legal compliance
• Smooth customs clearance
• Reduces the risk of penalties
• It enhances the business's credibility

Conclusion

Understanding Import Authorisation in India is essential for any business engaged in international trade. While most of the goods can be imported freely with an IEC, some restricted items require the prior government approval.

By identifying the correct and accurate ITC (HS) Code, complying with the Foreign Trade Policy (FTP) 2023 and obtaining necessary approvals from the Directorate General of Foreign Trade, businesses can ensure smooth and compliant import operations. 

FAQs

1. Is import license mandatory in India?
   No, it is required only for restricted goods.

2. What is the official name of import license?
   It is called Import Authorisation.

4. Who issues import authorisation?
   The Directorate General of Foreign Trade issues it.
   
   
5. Is IEC compulsory for imports?
   Yes, for most commercial imports.

5. How do I check if my product needs a license?
   You need to check the ITC (HS) Code and its classification under DGFT.