Import licensing policy

Introduction While the majority of the goods are freely importable, the Exim Policy (2007) of India prohibits import of certain categories of products as well as conditional import of certain items. In such a situation it becomes important for the importer to have an import license issued by the issuing authorities of the Government of India. Import License Issuing Authority In India, Import License is issued by the Director General of Foreign Trade. DGFT Delhi office is situated in Udyog Bhawan, New Delhi 110011. Validity of Import License Import Licenses are valid for 24 months for capital goods and 18 months for raw materials components, consumable and spares, with the license term renewable. Sample of Import License A typical sample of import license consists of two copiesForeign Exchange Control Copy: To be utilised for effecting remittance to foreign seller or for opening letter of credit Customs Copy: To be utilised for presenting to Customs authority enabling them to clear the goods. In the absence of custom copy, import will be declared as an unauthorised import, liable for confiscation and or penalty. Categories of Import All types of imported goods come under the following four categories:

Freely importable items: Most capital goods fall into this category. Any product declared as Freely Importable Item does not require import licenses. Licensed Imports: There are number of goods, which can only be importer under an import license. This category includes several broad product groups that are classified as consumer goods; precious and semi-precious stones; products related to safety and security; seeds, plants and animals; some insecticides, pharmaceuticals and chemicals; some electronically items; several items reserved for production by the small-scale sector; and 17 miscellaneous or special-category items. Canalised Items: There are certain canalised items that can only be importer in India through specified channels or government agencies. These include petroleum products (to be imported only by the Indian Oil Corporation); nitrogenous phosphatic, potassic and complex chemical fertilizers (by the Minerals and Metals Trading Corporation) vitaminA drugs (by the State Trading Corporation); oils and seeds (by the State Trading Corporation and Hindustan Vegetable Oils); and cereals (by the Food Corporation of India).

Prohibited items: Only four items-tallow fat, animal rennet, wild animals and unprocessed ivory-are completely banned from importation.

Category of Importer On the basis of product to be imported and its target buyer, importers categories are divided into three groups for the purpose of obtaining import licensing: 1. Actual Users- An actual user applies for and receives a license to import of any item for personal use rather than for business or trade purpose. 2. Registered exporters; defined as those who have a valid registration certificate issued by an export promotion council, commodity board or other registered authority designated by the Government for purposes of export-promotion. 3. Others. The two types of actual user license are: 1. General Licenses : This license can be used for the imports of goods from all countries, except those countries from which imports are prohibited; 2. Specific Licenses: This license can only be used for imports from a specific country.

Import Licensing
The WTO Agreement on Import Licensing Procedures (Import Licensing Agreement) sets out rules for all Members on the use of import licensing systems to regulate their trade. Import Licensing systems are administrative procedures requiring the submission of an application or other documentation (other than that typically required for customs purposes) to a designated administrative body as a prior condition for importation. In addition to import licensing itself, the Agreement also covers procedures associated with a range of practices meeting that definition, including import approvals, import permissions or permits, and activity licenses required for importation. Agreement's provisions include guidelines for what constitutes a fair and nondiscriminatory application of such procedures with the goal of protecting Members from unreasonable requirements or delays associated with a licensing regime. These obligations are intended to ensure that import licensing procedures do not create additional barriers to trade beyond the policy measures implemented through licensing. In addition, the Agreement establishes requirements for periodic notifications that describe any licensing systems applied to imports, along with copies of the relevant legislation, in order to increase the transparency and predictability of Members' licensing regimes. The Import Licensing Agreement's provisions discipline licensing procedures, and do not directly address the WTO consistency of the underlying measures that are being implemented through licensing. Members are required to have WTO justification for any licensing requirements established.

The Agreement covers both "automatic" licensing systems, which are intended only to monitor imports, not regulate them, and "non-automatic" licensing systems, under which certain conditions must be met before a license is issued. Governments often use non-automatic licensing to administer import restrictions such as quotas and tariff-rate quotas (TRQs), or to administer safety or other requirements (e.g., for hazardous goods, armaments, antiquities, etc.). Requirements for permission to import that act like import licenses, such as certification of standards and sanitary and technical regulations, are also subject to the rules of the Import Licensing Agreement. The Committee on Import Licensing Procedures The Committee on Import Licensing (the Import Licensing Committee) administers the Agreement and meets twice a year.The Committee seeks to encourage compliance with the mutually agreed rules laid out in the Agreement through a system of regular Committee reviews of the notifications submitted by WTO Members. The Committee also receives questions from Members on the licensing regimes of other Members, whether or not these regimes have been notified to the Committee. The Committee meetings also address specific observations and complaints concerning Members' licensing systems. These reviews offer Members an opportunity to focus multilateral attention on licensing measures and procedures that they find problematic, to receive information on specific issues and to clarify problems, and possibly to resolve issues before they become disputes. Additional information on WTO work related to import licensing can be accessed through the WTO website.Documents related to the work of the Committee on Import Licensing can be accessed through the WTO "Documents Online" website. For help in navigating this website, select "Help" in the navigation bar at the top of the screen after opening the website.

Annual Reports of the Committee on Import Licensing to the Council on Trade in Goods can be obtained by searching under the Document Code G/L/% (where % takes additional values), and Document Title "Committee on Import Licensing". Minutes of the meetings of the Committee on Import Licensing can be obtained by searching under the Document Code G/LIC/M/% (where % takes additional values). Notifications to the Committee on Import Licensing can be obtained by searching under the Document Code G/LIC/N/% (where % takes additional values). Questions and replies by Members concerning import licensing Notifications can be obtained by searching under the Document Code G/LIC/Q/% (where % takes additional values).