The short answer, before anything else
Not every import or export needs a licence. Most trade in India moves under a plain Importer Exporter Code with no further permission required. But a specific slice of goods, classified as Restricted under the ITC (HS) Schedule, cannot move at all without a separate authorization from DGFT, issued before the shipment happens, not after.
Confusing an IEC with a DGFT licence is the single most common mistake we see. The IEC gets you into international trade. A Restricted Item authorization, a SCOMET clearance, an Advance Authorization or an EPCG licence are separate permissions layered on top, and they only apply when the specific goods you are moving fall into a controlled category.
Get the classification wrong and the consequence is not a delay. It is a shipment held at port, a possible penalty, and in serious cases an IEC put on hold while the matter is investigated.
Why we are writing this
Rasp International has handled DGFT licensing, liaison and customs work since 2019, across leather, handicrafts, textiles, engineering goods, marine and food exports. The pattern that shows up most often is not exporters trying to smuggle something restricted. It is exporters who genuinely did not know a classification had changed, because ITC (HS) restrictions get amended by DGFT notification with almost no warning.
Most silver, platinum and base metal clad jewellery lines under heading 7113 moved from Free to Restricted with immediate effect under DGFT Notification No. 02/2026-27 dated 1 April 2026; the gold jewellery lines of that heading were already Restricted. DGFT Notification No. 03/2026-27 dated 2 April 2026 did the same for other Chapter 71 lines, such as articles of silver under heading 7114. Silver bars (ITC (HS) 71069221 and 71069229) followed on 16 May 2026 under DGFT Notification No. 17/2026-27. Palladium, rhodium and iridium alloys with more than 1 percent gold by weight became Restricted under DGFT Notification No. 18/2025-26 dated 17 June 2025. Notifications No. 02/2026-27 and 03/2026-27 say the new restrictions apply irrespective of any prior contract, irrevocable letter of credit, advance payment or shipment status.
This piece exists so you can check your own HS code against the current policy before you commit to an order, not after.
What “restricted” actually means under India’s trade policy
Every item traded internationally sits under an eight digit ITC (HS) code, and every code carries one of four policy statuses.
Free goods move with nothing beyond the standard IEC and shipping documentation. Restricted goods are not banned, but they cannot move without a specific authorization from DGFT, granted case by case. Prohibited goods cannot be traded at all under ordinary channels. State Trading Enterprise goods can only be imported or exported through a designated government agency, regardless of who the actual buyer or seller is.
The distinction that trips people up is between Restricted and Prohibited. A Restricted classification is a door that opens with the right paperwork. A Prohibited classification does not open at all through a licence application.
The DGFT licences that actually exist
DGFT issues several distinct authorizations, and the one you need depends entirely on the goods and the direction of trade.
Restricted Item Import Authorization is required to bring in goods classified as Restricted on the import side. Restricted Item Export Authorization is the mirror version for goods restricted on export, which is common for certain agricultural commodities, minerals and cultural items.
SCOMET Authorization sits in its own category and applies to Special Chemicals, Organisms, Materials, Equipment and Technologies, essentially dual use and strategic goods with defence or proliferation sensitivity. It carries a separate, stricter process from an ordinary restricted item licence and end use certification is central to the application.
Advance Authorization allows duty free import of inputs that go into goods you will export, tied to a fixed export obligation. EPCG allows duty free import of capital equipment against a future export commitment. Both of these are incentive linked authorizations rather than restriction clearances, but they are still DGFT licences and still carry their own compliance calendar.
PIMS and SIMS, which we cover separately, are import monitoring registrations for paper and steel respectively. They function differently from a restricted item licence and are not interchangeable with one.
Rasp International handles DGFT compliance, licensing and policy advisory.
Talk to our team for a free assessment. 500+ exporters served since 2019.
How the application actually moves through DGFT
The application is filed on the DGFT portal against the Import Management System or Export Management System, never offline except in specific exception cases. You will need the item description, quantity, unit of measurement, HS code, CIF value in Indian and foreign currency, and a Proforma Invoice from the supplier for imports.
The application fee is 0.1% of the CIF value, subject to a floor of Rs 500 and a ceiling of Rs 1,00,000. Payment proof has to be uploaded with the application itself, not after.
For restricted items, the application goes online to DGFT headquarters in ANF 2M for imports or ANF 2N for exports, HBP 2023 para 2.47(a). The authorization may be granted by DGFT or a Regional Authority that DGFT authorizes, which may take the advice of the Exim Facilitation Committee (EFC) of technical ministries and departments, HBP para 2.48(a). HBP Chapter 2 sets no time limit for the decision. The EFC normally meets once every month, and a case can be deferred until comments or a No Objection Certificate arrive from the ministry concerned, HBP para 2.48(c). Check the likely timing with the EFC section at DGFT headquarters.
If the application is incomplete, DGFT rejects it with stated reasons rather than holding it indefinitely. You then have 90 days to rectify and reopen the same application. Miss that window and it is treated as withdrawn, which means starting over.
What happens if you skip it
Restricted item authorizations are pre-shipment approvals only. There is no mechanism to apply after the goods have already left port, and treating it as a formality you can sort out later is the single most expensive assumption we see clients make.
Shipping without the required licence can mean the consignment held at customs, monetary penalty, confiscation of the goods, and in serious or repeated cases suspension of the IEC itself under the Foreign Trade (Development and Regulation) Act. An IEC suspension does not just stop the one shipment. It stops every shipment under that code until it is resolved.
Where this actually breaks
A few patterns account for most of the licensing failures we get called in to fix.
Assuming last year’s classification still holds. ITC (HS) restrictions change by DGFT notification, sometimes with immediate effect. The gold, silver and precious metal alloy examples above all took effect the same day they were notified. A product that was Free six months ago can be Restricted today.
CIF value mismatch against the Proforma Invoice. The application fee and much of the scrutiny is anchored to CIF value. A figure that does not reconcile with the PI is one of the fastest ways to get flagged for clarification, which resets your timeline.
Missing the sector specific NOC. Certain categories, health products, chemicals, and items with security sensitivity among them, need a No Objection Certificate from the relevant administrative ministry before DGFT will process the file at all. Applicants who file without checking this first lose weeks waiting on a step they did not know existed.
Treating the licence as permanent. A restricted export authorization is generally valid for 24 months from issuance, HBP 2023 para 2.16, and DGFT headquarters may revalidate it on merit for six months at a time, up to 12 months, HBP para 2.20(b). A restricted import authorization is valid for 18 months, HBP para 2.16, and DGFT headquarters may revalidate it on merit for six months from the date its validity expires, HBP para 2.20(a). Neither is automatic. Plan the shipment schedule against the validity window, not against when you happened to apply.
Frequently asked questions about DGFT licensing
What is a DGFT license?
A DGFT licence is a government authorization required to import or export specific goods that fall outside the default Free trade category under India’s Foreign Trade Policy. It is separate from, and additional to, the basic Importer Exporter Code.
What is the difference between a restricted and a prohibited item?
A Restricted item can be traded with prior DGFT authorization. A Prohibited item cannot be traded through ordinary commercial channels at all, regardless of licensing.
How long does a DGFT restricted item license take to get approved?
HBP 2023 Chapter 2 sets no time limit for the decision. The Exim Facilitation Committee normally meets once every month, and a case can be deferred until comments or a No Objection Certificate arrive from the ministry concerned, HBP para 2.48(c). Check the likely timing with the EFC section at DGFT headquarters.
How much does DGFT charge to apply for a restricted item license?
The government application fee is 0.1% of the CIF value of the goods, with a minimum of Rs 500 and a maximum of Rs 1,00,000.
Can I ship the goods first and apply for the license afterward?
No. Restricted item authorizations are pre-shipment approvals. Applying after goods have already shipped is treated as non-compliance, not as a late filing, and can attract penalties.
How long is a DGFT restricted item authorization valid once issued?
Restricted export authorizations are generally valid for 24 months from issuance, and DGFT headquarters may revalidate them on merit for six months at a time, up to 12 months, HBP 2023 paras 2.16 and 2.20(b). Restricted import authorizations are valid for 18 months, and DGFT headquarters may revalidate them on merit for six months from expiry, HBP paras 2.16 and 2.20(a).
Is SCOMET authorization the same as a restricted item license?
No. SCOMET covers Special Chemicals, Organisms, Materials, Equipment and Technologies, largely dual use and strategic goods, and follows a stricter, separate authorization process with its own end use certification requirements.
Does every import or export need a DGFT license?
No. Most trade moves under a standard IEC with no further licence required. A DGFT licence is only needed when the specific HS code of the goods being traded falls under the Restricted, SCOMET or State Trading Enterprise category.
Rasp International handles DGFT compliance, licensing and policy advisory.
Talk to our team for a free assessment. 500+ exporters served since 2019.
If you are not sure which category your goods fall under
The fastest way to lose money on a restricted item is to find out its status after the goods are already on a vessel. Rasp International checks the current ITC (HS) classification against your specific product before you commit to an order, and if a licence is needed, we handle the DGFT filing, the documentation, and the follow up with the Regional Authority through to issuance. If you are planning a shipment involving anything outside a straightforward Free category item, it is worth a quick check before you place the order, not after.
References and official sources
Every figure, date and notification number on this page is traceable to a primary Government of India source. Secondary sources are marked where they reproduce primary text.
| Source | What it covers | Type |
|---|---|---|
| DGFT notifications and public notices | Restricted and prohibited item listings, licensing notifications, ITC HS import and export policy | Primary, Government of India |
| Foreign Trade Policy 2023 and Handbook of Procedures | Chapter 2 general provisions, licensing authority, Regional Authority jurisdiction | Primary, Government of India |
| ICEGATE | Shipping bill and bill of entry filing against a licence, customs transmission of authorisations | Primary, Government of India |
| CBIC | Customs circulars governing clearance of restricted consignments | Primary, Government of India |
Last verified 12 August 2026 by Rasp International.
Related reading
- DGFT consulting and liaison services
- EXIM licences and registrations
- Importer Exporter Code, the registration every licence sits on
- Export Promotion Mission, the framework behind current DGFT policy
- RoDTEP scheme explained
- Talk to Rasp International about a restricted item licence
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