Licensing, Quotas and Prohibitions
Import approval is based on compliance with procedures whereby specific
items may be imported by certain types of importers under certain types
of licences. Importers are divided into three categories for the purpose
of import licensing:
- actual users; An actual user applies for and receives a licence
to import any item or an allotment of an imported item as required
for his own use, not for business or trade in that item.
- 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.
- others.
The two types of actual user licence are:
- general currency area licences which are valid for imports from
all countries, except those countries from which imports are
prohibited;
- specific licences which are valid for imports from a specific
country or countries. Aside from the types of licences listed, the
Open General Licence is perhaps the most liberalized type of licence
available for certain items and certain types of importers.
Licences are valid for 24 months for capital goods and 18 months for
raw materials components, consumable and spares, with the licence term
renewable. Import licences may be obtained from the director general of
foreign trade ( Office of Chief Controller of Imports and Exports,
Ministry of Commerce, Udyog Bhawan, New Delhi 110011, Tel: 301-7777 ).
Traders are advised to consult the Handbook of Procedures which is
published by the Ministry of Commerce and is part of the Import and
Export Policy for further details.
