IMPORT AND EXPORT LAWS

1.1 In terms of the FTP, the Central Government has notified the import and export policy (Schedule 1 and 2 to ITC(HS) respectively). As per the provisions of the FTP, Schedule 1 of the import policy provides a classification for various kinds of goods, organized into chapters containing similar types of goods and sub-classifications of the same (based on the Harmonized System of Nomenclature (“HSN”)). The import and export of goods have been divided into three (3) categories under the FTP read with Schedule I and II to the ITC(HS), namely:

(a) Prohibited: If import of a product is specified as Prohibited, then import thereof is not allowed in India;

(b) Restricted: The goods under this category are allowed to be imported, under the specific license(s) or permission(s) granted by the Director General Foreign Trade (“DGFT”) or concerned ministries of the Indian Government;

(c) State Trading Enterprises (“STE”): Certain goods are allowed to be imported exclusively by an STE (i.e., a government undertaking), and other entities are permitted to import such goods only through STEs;

(d) Free: Goods falling under this category are allowed to be imported into India without any specific license, but subject to general procedural requirements applicable to the import of goods; and

(e) Special Chemicals, Organisms, Materials, Equipment and Technologies (“SCOMET”): The goods constituting SCOMET items (falling under Appendix 3 to Schedule – 2 of the ITC(HS) Classification of Export and Import Items) are allowed to be exported only under the specific authorisation issued by the DGFT or other relevant authorities.

Note: The import of goods is assumed to be free unless they are specified as prohibited, restricted, or allowed to be traded exclusively through STE.

In addition to the above, the import of goods is subjected to the “General Notes Regarding Import Policy” under the FTP, as per which, all the domestic laws apply to the imported goods, including specifically, consumer protection laws such as food safety standards, quality standards by the Bureau of Indian Standards, labelling and packaging requirements under Legal Metrology laws, etc.

A. Registration / License

In terms of the FTP, every importer or exporter of goods, unless specifically exempted, is required to obtain the IEC from the DGFT.