Principles of Restriction

In our blog, "Import Authorization of Restricted Items: A Complete Guide," we discussed the various categories of imports under the Foreign Trade Policy: Restricted, Prohibited, and Freely Importable.

We also learned that any goods or services classified as restricted can only be imported or exported with authorization or specific permission from the Directorate General of Foreign Trade (DGFT), following the procedures outlined in a Public Notice or Notification issued by the DGFT.

The DGFT considers several principles before issuing a notification to classify any goods or services as restricted or prohibited.

In this blog, we will explore these principles in detail.

DGFT may, through a Notification, impose ‘Prohibition’ or ‘Restriction’:

1. on export of foodstuffs or other essential products for preventing or relieving critical shortages;

1. on imports and exports necessary for the application of standards or regulations for the classification, grading or marketing of commodities in international trade;

1. on imports of fisheries product, imported in any form, for enforcement of governmental measures to restrict production of the domestic product or for certain other purposes;

1. on import to safeguard country’s external financial position and to ensure a level of reserves;

1. on imports to promote establishment of a particular industry;

1. for preventing sudden increases in imports from causing serious injury to domestic producers or to relieve producers who have suffered such injury;

1. for protection of public morals or to maintain public order;

1. for protection of human, animal or plant life or health;

1. relating to the importations or exportations of gold or silver;

1. necessary to secure compliance with laws and regulations including those relating to the protection of patents, trademarks and copyrights, and the prevention of deceptive practices;

1. relating to the products of prison labour;

1. for the protection of national treasures of artistic, historic or archaeological value;

1. for the conservation of exhaustible natural resources;

1. for ensuring essential quantities for the domestic processing industry;

1. essential to the acquisition or distribution

1. for the protection of country’s essential security interests

1. relating to fissionable materials or the materials from which they are derived;

2. relating to the traffic in arms, ammunition and implements of war;

3. taken in time of war or other emergency in international relations; or

1. in pursuance of country’s obligations under the United Nations Charter for the maintenance of international peace and security

The above are the principles based on which a particular item may be placed under a restricted or prohibited category for imports or exports.