Free Sale & Commerce Certificate - Process, Documents and Fees

Updated on July 06, 2024 11:04:39 PM

The Directorate General of Foreign Trade (DGFT), India's apex body responsible for regulating and promoting foreign trade, has published a list of categories and items whose import into India is restricted. The list of restricted items is based on the Schedule 1 of ITC (HS) Classifications of Export & Import Items. Therefore importers of listed items or categories are required to obtain an approval from DGFT to import such items in India. This list aims to protect domestic industries, prevent illegal or harmful goods from entering the country, and ensure compliance with international trade agreements.

By implementing import restrictions, the DGFT seeks to strike a balance between promoting international trade and safeguarding India's economic interests and domestic industries. However, importers can still import items from the restricted schedule list after a prior import authorisation from DFGT.

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Categories of Restricted Items Import Authorization Is Required For

  • Live Animals and Bovine Semen for Breeding
  • Horses for sportsmen
  • Import of pets
  • Import of live animals for R&D
  • Import of Tyre Scrap/ Lead / Battery Scrap
  • Import of Slag
  • Import of ozone-depleting substance
  • Import of wild animals under exchange programme
  • Import of Arms & Ammunition
  • Aircraft/helicopter/hot air balloons/UAVs
  • Transmitter or Communication device
  • Refurbished electronic items
  • Import of gold - Dore
  • Import of silver - Dore
  • Import of Computers
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Reasons why Restrictions imposed on Import of those items

The restrictions on imports are imposed for various reasons, including:

  1. Protection of Domestic Industries : To safeguard domestic industries, especially in sectors where India has a comparative advantage, from unfair competition posed by imported goods.
  2. National Security : To prevent the import of goods that could potentially be used for malicious purposes or pose a threat to national security.
  3. Environmental Conservation : To discourage the import of products that may harm the environment or deplete natural resources.
  4. Health and Safety : To protect public health and safety by restricting the import of hazardous or unsafe goods.
  5. Intellectual Property Rights : To enforce intellectual property rights and prevent the import of counterfeit or pirated goods.
  6. Foreign Exchange Management : To manage the country's foreign exchange reserves and prevent excessive imports that could lead to a trade deficit.
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List of Departments From where import authorisation is Required

  • BIS Certification
  • State Husbandry Department (if required)
  • Certification of having R&D facilities
  • NoC From MoEF&CC
  • State pollution control board certificate
  • Recommendation of central zoo authority
  • Arms Dealer License (if applicable)
  • DGCA permission
  • NABL Certificate for first-time importers (if required)
  • End User Certificate
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Documents required for Import authorization for restricted items

  • MSME Certificate
  • Import export License
  • Board resolution copy
  • Authorization form Concern dept
  • Aadhar card and pan card details of authorized person
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Fee for Import Authorisation for Restricted Items

A value of one per thousand or a part thereof, subject to a minimum of 500 rupees and a maximum of 1 lakh rupees, is charged on CIF value for import authorization. It takes around 4-5 working days to get import authorisation for restricted items in India with DGFT.

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Process for Import Authorisation for Restricted Items

Step 1: Documentation

Provide all the related documents and related details regarding items that you want to import.

Step 2: Application

Once all the documentation is provided our exports will file an application for the same with respective authorities for your import authorisation of said restricted item.

Step 3: Verification

After the verification of documentation by the concerning authorities the approval for import of restricted items will be granted.

Step 4: Authorization

It would take around 3-5 working days to get import authorization once the verification and documentation is completed with the DGFT.

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Guidelines Under Custom Act

In India, the import of certain items is strictly prohibited as per the Customs Act. This prohibition aims to protect the country's interests and prevent the entry of harmful or illegal goods. The list of prohibited items includes substances that pose a threat to public health, national security, or the environment. Additionally, the government may impose temporary bans on the import of specific products for various reasons, such as to protect domestic industries or to address trade disputes.

If an importer wishes to bring in items that are banned under customs, they must obtain import authorization from the relevant governing bodies. This process involves submitting a detailed application and providing justification for the import. The authorities will evaluate the application and grant permission only if they are satisfied that the import is necessary and does not pose any risks.

Here are some key points to consider regarding the import of banned items in India:

  1. Prohibited List: The Customs Act provides a comprehensive list of items that are prohibited from import into India. This list includes narcotics, psychotropic substances, weapons, counterfeit goods, and certain hazardous materials.
  2. Temporary Bans: In addition to the permanent prohibitions, the government may impose temporary bans on the import of specific products or commodities. These bans are usually implemented to address specific trade issues or to protect domestic industries.
  3. Import Authorization: Importers who wish to bring in banned items must obtain import authorization from the respective governing bodies. This process requires the submission of a detailed application and supporting documentation.
  4. Evaluation: The authorities will evaluate the import authorization application based on various factors, including the purpose of the import, the end-user, and the potential risks associated with the goods.
  5. Compliance: Obtaining import authorization is essential for importers to ensure compliance with customs regulations and avoid legal penalties. Failure to comply may result in the seizure of goods, fines, or other legal consequences.
  6. Documentation: Importers must maintain accurate documentation related to the import authorization, including the application, supporting documents, and any subsequent approvals or permits.
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Conclusion

Importing restricted items in India requires meticulous attention to legal compliance. To ensure a smooth and compliant import process, importers are strongly advised to consult with professionals. Here's why:

  1. Expertise and Knowledge: Professionals possess specialized knowledge of import regulations, customs procedures, and legal obligations. They stay updated on changes in policies and can provide accurate guidance based on the latest requirements.
  2. Interpretation of Regulations: Restricted items are often subject to complex regulations and conditions & can help interpret these regulations and clarify the specific requirements for obtaining import authorization.
  3. Documentation and Paperwork: mporting restricted items involves extensive documentation, including licenses, permits, and other paperwork. Customs brokers and legal professionals can assist in preparing and reviewing the necessary documents to ensure completeness and accuracy.
  4. Classification and Valuation: Correct classification and valuation of restricted items are crucial for customs clearance. Professionals can help importers identify the appropriate customs tariff codes and determine the value of the goods to avoid any discrepancies or delays.
  5. Some restricted items may require special licenses or permits for import. Professionals can guide importers through the licensing process, ensuring that all necessary approvals are obtained.

By consulting with Professional Utilities, importers can gain peace of mind, reduce the risk of non-compliance, and ensure a smooth and efficient import process for restricted items in India.

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Frequently Asked Questions

Is it mandatory to get Import authorization for importing restricted items?

Yes, under the rules of DFGT it is mandatory to obtain Import authorization to import restricted items in India.

How to obtain Import authorisation for restricted items in India?

You can obtain your import authorisation with Professional Utilities in just 3 steps.

  • Fill out Form
  • Provide Documents and Details
  • Get Authorization in 4-5 working days
What is the Fee for Import authorisation for restricted items in India?

The Govt fee for import authorisation for restricted items can vary from INR 500 to one lakh rupees, depending upon the nature of item being imported.

Who provides import authorisation on restricted items in India?

The DGFT "directorate general of foreign trade" is responsible for providing import authorisation for restricted items in India.

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