How to Import Restricted Goods in India: DGFT License Process, Documents & Compliance Guide

Posted by Written by Archana Rao Reading Time: 5 minutes

India’s central government has issued a notification on temporary restrictions on imports of specific items in India. The circular, issued by the Directorate General of Foreign Trade (DGFT) on March 16, 2026, specifies that the restriction would be till June 30, 2026.

This decision comes amid the West Asia conflict, which has resulted in global economies reassessing their trade strategies and supply chain operations and protecting their GDP figures.

Essentials to following DGFT import protocols

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In general, India’s Directorate General of Foreign Trade (DGFT) is responsible for issuing permission for the import of restricted items, which requires legal approval. Import of goods subject to admission restrictions is governed by India’s Foreign Trade Policy.

For traders based in India, obtaining the required permission or license for the import of restricted items is necessary to ensure no legality norms are violated. Import of certain goods can be classified as restricted based on the following conditions:

  1. Safety concerns
  2. Health risks
  3. Environmental protection
  4. Protection of domestic industries
  5. Support for home- or village-based industries

There are other conditions as well to impose import restrictions on goods based on the protection of national security, controlling the inflow of luxury goods to conserve foreign exchange, and ensuring compliance with international treaties and conventions.

All importable goods in India are classified under the Indian Trade Classification (Harmonized System)—ITC (HS), which serves as the foundational framework for determining import policy conditions. Each product is assigned a specific 8-digit ITC (HS) code, and the applicable import status, such as free, restricted, prohibited, or state trading, is defined against this code in Schedule I (Import Policy).

CLICK HERE TO KNOW MORE: Understanding India’s New HSN Code Guidebook

Digital licensing framework

To streamline the approval process and enhance transparency, the central government implemented a fully digital Import Management System in March 2021. All applications for restricted imports must now be submitted through the DGFT’s online portal. Manual submissions have been discontinued, reinforcing a standardized and traceable workflow.

The system allows applicants to file, track, and manage applications electronically, including the submission of supporting documentation and responses to regulatory queries.

Eligibility for license or permit to import restricted goods

The following entities can apply for DGFT approval:

  1. Importers: Businesses or individuals regularly importing restricted goods
  2. Manufacturers/producers: Entities importing restricted inputs for further processing
  3. Government departments: Agencies importing for official purposes
  4. Traders/retailers: Businesses importing for resale or domestic distribution

The list of restricted items spans diverse sectors and is subject to periodic revision. Broadly, it includes categories such as live animals and biological materials, hazardous or environmentally sensitive substances, certain precious metals, specific types of electronic equipment, and aviation-related goods, including aircraft and unmanned aerial vehicles.

Given the evolving nature of trade policy, businesses must verify the current classification of goods prior to initiating import transactions.

Documentation requirements for restricted items import

The application for a restricted import license must be supported by comprehensive documentation demonstrating the legitimacy of the importer, the nature of the goods, and their intended use. Core documentation essentials include:

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  • Duly completed application form
  • Valid Import Export Code (IEC)
  • Certificate of Incorporation/Business registration
  • Identity proof of authorised signatory
  • Invoice or purchase order
  • Detailed product description and specifications
  • End-use declaration

An applicant may also require other supporting documents for regulatory clearance. These include

  • Approvals from relevant ministries/regulators (if applicable)
  • Quality or safety certifications
  • Manufacturer’s authorization (for specific goods)
  • Customs/import history records (if available)
  • No Objection Certificate (NOC) where required

In the case of a product-specific importing license, an applicant must submit:

  • Technical specifications
  • Environmental clearances
  • Health/safety certifications
  • Special permits depending on product category

Application and approval process

The process for obtaining a restricted import license and permit is structured and sequential, with all stages conducted through the DGFT portal.

Step 1: Preparation of documents

Compile all required documentation and approvals.

Step 2: Online application submission

File the application via the DGFT portal.

Step 3: Preliminary scrutiny

DGFT reviews the application for completeness.

Step 4: Detailed evaluation

Assessment of compliance with import policy and regulations.

Step 5: Clarifications (if required)

Additional information may be requested.

Step 6: Approval and license issuance

Once the application satisfies all requirements, the DGFT grants approval and issues the import authorization.

Step 7: Customs clearance

Goods can be cleared after obtaining the license and meeting other regulatory requirements.

Processing timeline for import clearance

The approval process typically follows a structured timeline, beginning with initial screening within a few working days of submission. Document verification generally takes one to two weeks, while the final decision is usually issued within 15 to 30 working days.

In practice, the overall timeline ranges between 40 and 60 days. However, this may vary depending on the complexity of the goods, the need for inter-agency approvals, and the completeness of the documentation submitted.

Fee structure

The cost of obtaining approval generally includes:

  • Government fee: Based on the cost, insurance and freight (CIF) value of goods
  • Professional fee: If consultants are engaged
  • Miscellaneous expenses: Documentation, certification, inspection, etc.

Compliance and risk considerations for non-adherence to DGFT clearance

Strict adherence to the licensing requirement is essential. Importing restricted goods without prior approval constitutes a violation of trade regulations and can lead to significant consequences. Failure to obtain the required DGFT approval may result in:

  • Confiscation of goods by customs authorities
  • Monetary penalties, potentially up to twice the value of goods
  • Legal proceedings, including prosecution in severe cases
  • Suspension or cancellation of import licenses
  • Restrictions on market access in India

Role of professional advisory

Given the procedural complexity and regulatory scrutiny involved, many businesses engage professional advisors to manage the process. Such support typically includes end-to-end assistance with:

  1. Accurate application preparation and filing
  2. Document verification and compliance checks
  3. Liaising with DGFT for follow-ups and clarifications
  4. Minimizing delays and improving approval timelines
  5. Providing post-approval compliance support

Recent policy shift on studded jewelry imports

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India’s tightened controls on the import of certain categories of gold and silver jewelry, particularly those studded with lower-value diamonds. This move comes against the backdrop of unusual pricing dynamics in international bullion markets, notably in Dubai, where traders have been offering discounts of nearly US$30 per ounce due to subdued market activity.

The 2026 import restriction on studded gold and silver jewelry and specific ITC (HS) codes (for example, 71131144 and 71131145) highlights the importance of regularly reviewing ITC (HS) updates and aligning import compliance accordingly.

Dubai’s bullion trade disruption is linked to the West Asia geopolitical tensions that have majorly impacted regional financial and commercial flows.

India’s foreign trade regulatory body issued a notification revising the import policy for these products. Specifically, the classification has been changed from “free” to “restricted,” meaning that imports of these items will now require prior government approval. This regulatory change has taken effect from March 16 and will remain in force until June 30, 2026.

The policy adjustment is intended to strengthen oversight and prevent unregulated inflows of such goods. Industry stakeholders have indicated that the measure is likely aimed at improving traceability within the supply chain, curbing potential misuse of import channels for duty arbitrage, and supporting domestic manufacturers.

Conclusion

India’s import control framework continues to evolve in response to global market disruptions and domestic economic priorities. The recent move by the central government to shift certain studded gold and silver jewelry imports from “free” to “restricted” status reflects a more calibrated and responsive trade policy approach aimed at preventing opportunistic inflows, stabilizing domestic markets, and strengthening regulatory oversight.

Within this context, compliance with DGFT procedures is not merely a legal requirement but a strategic necessity for businesses engaged in cross-border trade. Importers must remain vigilant to policy changes, ensure accurate classification of goods, and adopt a structured approach to licensing and documentation.

As India increasingly aligns its trade controls with broader economic and geopolitical considerations, businesses that proactively adapt to regulatory shifts will be better positioned to maintain continuity, manage risks, and leverage emerging opportunities in a controlled import environment.

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