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DGFT Online Module for Import Authorization

As part of the IT Revamp, the Directorate General of Foreign Trade has introduced the Online Module for Import Authorization vides a Trade notification dated 23rd March 2021. All applicants seeking import authorization for restricted items must apply online through the DGFT new Online Module for Import Authorization under Import Management System. The current article briefs the DGFT Online Module for Import Authorization of Restricted Items.

Important Announcement for Importers

The applications for import authorization will need to be submitted directly to DGFT (HQ) through the new Online Module with effect from 22.03.2021, and import authorizations for restricted items will be issued from DGFT HQ, Udyog Bhawan, New Delhi, with effect from 22.03.2021.

• With this notification, DGFT announced that all pending applications have been migrated to DGFT’s new Online Module and will be processed suitably at DGFT (HQ).
• The requests for revalidation or amendment of import authorizations issued before 22.03.2021 applications will be submitted directly to the concerned RA of DGFT for processing. RA may amend such authorizations manually according to the earlier procedure of revalidation or amendment.
• For revalidation or amendment of such authorizations issued on or after 22.03.2021, applications would be required to be furnished electronically to DGFT (HQ). Original Copies of the approval will be required to be presented to DGFT (HQ) for revalidation/amendment endorsements.

A fundamental feature of the Foreign Trade Policy of India is free trade. Hence, many licensing, quantitative restrictions and regulatory discretionary controls on import or export of goods or services from India have been relaxed. However, some items might still require import authorisation. In this article, we look at the procedure for obtaining import authorisation in India.

Free Import

All goods may be imported freely into India without any restriction except to the extent such imports are regulated by the provision of the Foreign Trade Policy or any other law for the time being in force. The item wise import and export policy is published in the ITC (HS) Classifications of Export and Import Items by the Director General of Foreign Trade.

Import Restricted through Authorisation

Import of goods and service which are restricted under ITC(HS) classification of Export and Import items, will be allowed only in accordance with an authorisation or a public notice issued on behalf of the concerned regional authority.

All goods, import permitted only with Authorization / Permission / License or following the procedure prescribed in a notification/public notice are ”Restricted” goods. The list of ”Restricted” items is available in the Import, Export & SCOMET Policy in the Regulatory Updates section on the DGFT website.

Import Authorization Terms

All import authorizations are provided under terms and conditions as specified by the regional authority, which may include the following:

• Description, quantity, and value of goods to be imported.
• Actual user condition.
• Export obligation, if any.
• Minimum value addition to be achieved, if any.
• Minimum export or import price.
• Bank guarantee or legal undertaking or bond with the customs authority.
• Validity period.

Prerequisites for Applying for a Restricted Imports Authorization

To apply for Restricted Imports Authorization, the following are the prerequisites required:

• The DGFT user profile must be linked with an importer-exporter Code
• A valid DSC must be registered in the system
• GSTN details corresponding to the branches of the IEC

Application fee for Restricted Imports

A registration fee of Rs.1 per thousand subjects to a minimum of Rs. 500/- and a maximum of Rs.1 Lakh on Cost, insurance, and freight (CIF) amount of the Authorization will need to be paid through electronic mode in the online system for each application for issuance of the Authorization.

Application fees for applying the fire validation icon for advance authorization

Application fees are Rs.500 for application for the firevalidationtion of Authorization.

Application fees for amendment for Restricted Imports authorization

• Basic application fees are INR 200 for application for amendment/ correction in the Authorization.
• If the CIF value of Authorization in the application form is increased, applicable fees will also increase therefore applicant will have to pay the difference amount while submitting the application.

Restricted Imports Authorisation Validity

Restricted Imports authorization shall be valid for imports for 18 months from the date of issuance of the Authorization.

Application Procedure for Restricted Imports authorization

The application procedure for applying the Restricted Imports authorization in the Import Management System through the importer’s dashboard on the DGFT Website is as follows:

New User Registration

• Access the official webpage of DGFT  and proceed with the registration process. Provide the Registration Details and Select Register User as ” Importer/Exporter”.

• Furnish the OTPs received on email and mobile number; upon Successful validation of the OTP, you can receive a notification containing the temporary password, which you need to change upon the first login.

Apply for Restricted Imports authorization

• After login into the DGFT web portal, navigate to the Services option and select Import Management system.

• Click on License for Restricted Imports, the link will redirect to a new page where the applicant can apply for a new authorization / Amendment of Restricted Imports AuthoriRevalidationidation of Restricted Imports Authorisation

• The user must click on the “Explore” link on the Apply for restricted imports authorization title.

Note: Select the “Start Fresh Application” button or the “Proceed with Existing Application” button if the user has already saved a draft application.

• On the “Application Type” screen, provide the values on the screen and click on the “Save and Next” option.
• On the “Firm’s’ details” screen, provide all the required input values and click on the “Save and Next” button.
• On the “Import Details” screen, furnish the required input values in “Import Item Details,” Details Of Imports” and click on the “Save and Next” button
• Users can add multiple items and licenses and bulk upload items if needed, as shown below:
• After entering details on the Import Details tab and Save and Next button, the user will be redirected to the “Port details tab
• Based on the value selected from the Purpose of Import dropdown on the “Port Details” screen, the ribbon will be displayed on the “Other Details” screen. The user must fill in the input values on the “Other Details” screen and click on the “Save and Next” button.

Upload Documents

Uploading an attachment is not mandatory; in case of users need to upload any requirement, they can upload and click on the “Save and Next” button.

Declaration Section

• On the “Declaration” tab, the user needs to accept the terms and conditions by clicking on the checkbox. Provide all required details and click the “Save and Next” button.
• On the “Application Summary” screen, select the acceptance of declaration check box and click on the Sign button to sign the application using a digital token.

Payment Section

• By clicking the “Sign” button, the “Payment for Apply for RESTRICTED IMPORTS AUTHORIZATION” button will be displayed.
• Confirm and proceed to make the payment against the application. The system calculates the application payment value automatically.

After Successful Payment, the Page shall be redirected to the DGFT Website, and the receipt shall be displayed; the user can also download the receipt. After verifying the details, the import authorization for the restricted item will be issued.

Checking the status of the Submitted Application

The applicant must log in to the DGFT Dashboard and click on the Submitted Applications. Enter the Type of Scheme (Select in the dropdown: Restricted Imports) and Type of Sub Scheme (Issuance of Restricted Imports Authorization).

By clicking on the search option, the status of the application will be displayed.

Other Details

The importer can import multiple products under a single Restricted Imports authorization, but he/she may only import the item listed as a Restricted Item.

Technical description of the product to be imported is essential information. Please mention the product’s technical details to be imported under the scheme. This description may include the product’s make, brand, specifications, etc.