How to Obtain an Import License in India: A Complete Guide

India's import licensing regime operates under the Foreign Trade (Development & Regulation) Act 1992, Foreign Trade Policy 2023-28, and the ITC(HS) Classification of Import and Export Items. Most goods are 'freely importable' — meaning they can be imported by any valid IEC holder without additional licensing, subject to payment of applicable customs duty and compliance with product-specific standards (BIS, LMPC, EPR, etc.). However, a significant category of goods are 'restricted' or 'canalised', requiring specific import licences from DGFT.

The ITC(HS) (Indian Trade Classification based on Harmonized System) classifies every importable good into three categories in Schedule I: Free items (no import licence needed), Restricted items (require specific licence from DGFT), and Prohibited items (cannot be imported). Understanding which category your product falls under is the critical first step in import planning. ISLF's DGFT consultants review the ITC(HS) classification for every client product before the first import shipment to identify all applicable licensing conditions.

Beyond the basic import licence framework, many goods require product-specific compliance certificates before customs clearance: BIS Certificate of Conformity (CRS) for electronics, electrical equipment, and toys; LMPC Certificate for pre-packaged goods; EPR registration for e-waste, plastics, and batteries; PIMS registration for paper and paperboard (Chapter 48); and CHIMS registration for semiconductors and integrated circuits (Chapter 8542). ISLF provides end-to-end support for obtaining all these product-specific compliances.

Step 1 — IEC Registration: The IEC (Import Export Code) is the foundational import licence — without it, no import can be made. ISLF manages IEC registration on the DGFT portal (dgft.gov.in) for all entity types. The IEC carries a government fee of ₹500, and once issued, is valid for lifetime (with mandatory annual updation). For businesses that only occasionally import, a one-time IEC registration is sufficient for unlimited import transactions.

Step 2 — ITC(HS) Classification and Licence Requirement Check: Based on the product's HS code and description, ISLF reviews the ITC(HS) Import Policy to determine whether the product is free, restricted, or subject to product-specific certification requirements. If the product is restricted (e.g., certain chemicals, live animals, second-hand goods, certain food items), ISLF applies for the DGFT import licence. If product certifications are required (BIS, LMPC, EPR, PIMS, CHIMS), ISLF initiates the relevant application process well in advance of the import.

Step 3 — Scheme-based Licences (EPCG, Advance Authorization): For importers who wish to import capital goods at zero duty (EPCG) or import raw materials duty-free for incorporation in exports (Advance Authorization), ISLF manages the licence application on the DGFT portal. These scheme licences require careful preparation — including the specification of capital goods or raw materials, computation of export obligation, and linkage to the applicant's IEC and GSTIN.

Once all licences and certifications are in place, the import clearance process uses the Risk Management System (RMS) to determine whether each shipment requires physical examination by customs. RMS-cleared shipments (green channel) receive out-of-charge without physical examination — typically within hours of Bill of Entry filing and duty payment. RMS-flagged shipments (yellow or red channel) are referred for document scrutiny or physical examination, extending the clearance timeline. ISLF's AEO status benefits our clients by reducing RMS examination probability.

Common pitfalls in import licensing that ISLF helps clients avoid include: importing before the BIS or LMPC certificate is issued (resulting in cargo detention at the port), importing goods in excess of the Advance Authorization licence quantity (creating duty liability on the excess), failing to declare the PIMS or CHIMS reference number in the Bill of Entry (causing customs queries), and importing second-hand goods without the mandatory chartered engineer's certificate of age and condition.

ISLF provides a complete import licence management service — from initial ITC(HS) review and licence application through to customs clearance with proper licence declaration and post-clearance scheme compliance. Our proactive approach means that licences are in place before cargo is shipped from the origin country, eliminating the risk of cargo detention at the port of entry. Contact ISLF's DGFT team to begin your import licence assessment today.