Free, Restricted or Prohibited? How India's Policy Treats Your Import or Export
Before you order or quote, find out the policy status of your goods. Here is how the Foreign Trade Policy classifies them.
- Exports and imports are free unless regulated as prohibited, restricted or reserved for State Trading Enterprises (Para 2.01).
- The status comes from the ITC(HS) code: Schedule 1 for imports, Schedule II for exports (Para 2.02).
- Restricted goods need an authorisation or permission (Para 2.08).
- What does "free" mean?
- Where do I find the status of my product?
- What does "restricted" mean?
- What does "prohibited" mean?
- Who may import against an authorisation?
- What can an authorisation contain?
- Is an authorisation guaranteed?
- Can I clear goods first and get the authorisation later?
- Are samples covered?
- What if I break the conditions?
- Can you check the policy status of my product?
What does "free" mean?
Para 2.01 says exports and imports are free, except where they are regulated by the Policy as prohibited, restricted or exclusively traded through State Trading Enterprises (STEs). A free item may still be subject to conditions under other laws, such as food, drug, plant or standards laws.
Where do I find the status of my product?
In ITC(HS), the Indian Trade Clarification based on the Harmonised System. Para 2.02 says Schedule 1 gives the import policy and Schedule II the export policy. You need the correct eight-digit code first. Our Product Guide and HS Code Finder help you reach the chapter.
What does "restricted" mean?
Para 2.08 says goods or services that are restricted can be imported or exported only under an authorisation or permission, or as set out in a notification or public notice.
What does "prohibited" mean?
DGFT may prohibit or restrict trade by notification on specified grounds, which Para 2.07 lists. They include critical shortages of food, public health and national security. The Policy also has specific prohibitions, for example on trade with certain named entities and countries, and on gift imports with listed exceptions (Para 2.26).
Who may import against an authorisation?
Para 2.09 says that if an import requires an authorisation, only the Actual User may import, unless DGFT dispenses with that condition.
What can an authorisation contain?
Under Para 2.10 it can set the description, quantity and value, the Actual User condition, an export obligation, minimum value addition, minimum price, a bank guarantee, legal undertaking or bond, and the validity period.
Is an authorisation guaranteed?
No. Para 2.13 says it is not a right. DGFT or the Regional Authority may refuse it or decline to renew it. The application fee in Appendix 2K is generally non-refundable (Para 2.11).
Can I clear goods first and get the authorisation later?
Para 2.12 allows pre-arrived goods to be cleared against a later authorisation, but that facility is not available for restricted items unless DGFT allows it.
Are samples covered?
Para 2.25 says bona fide samples of restricted items need no authorisation, except for defence and security items, seeds, bees and new drugs.
What if I break the conditions?
Para 2.14 says violating authorisation conditions, missing an export obligation or failing to pay what is due can lead to action under the Foreign Trade (Development and Regulation) Act, 1992, and the entity can be placed on the Denied Entity List.
Can you check the policy status of my product?
Yes. Send us the product and the destination or origin. We will tell you the code, the policy status and the papers to arrange, before you commit.
- DGFT: Foreign Trade Policy 2023, Chapter 2 (General Provisions Regarding Imports and Exports)
- DGFT: Foreign Trade Policy and Handbook of Procedures
Every fact here is taken from Government of India sources, as we read them on 12 November 2026. Please confirm against the original notification for your own shipment before you act. Rules change, and the right answer depends on your product, origin and destination.
Not sure how this applies to your shipment? Send us the product and the route. A call or a message is all it takes, and we are with you at every step of the way, whether you are importing or exporting.
Office (backup): +91 93733 11838
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha. We are consultants, not a law firm. This post is general information.