DGFT License for Restricted Import/Export

The DGFT license is an official trade permit issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry. This license gives legal approval to import or export items listed as restricted in the restricted items list under India's Foreign Trade Policy.

Certain products, such as defense goods, medical chemicals, and electronics, need this DGFT authorization before being traded. These goods may affect safety, the environment, or national interest, so their trade is closely monitored.

The DGFT import license and DGFT export license help maintain transparency in the movement of restricted goods. Every trader must follow proper steps through the DGFT portal in India, which offers an online process to apply, upload DGFT documents, pay DGFT fees, and track application status.

This system ensures that restricted imports and exports are handled lawfully and efficiently. By obtaining a DGFT trade license, every business shows compliance with India's trade laws and international guidelines. It builds a safe bridge between national policy and global business needs while preventing the misuse of sensitive goods.

What is a Restricted Item?

A restricted item is any product that cannot be freely traded without permission from the DGFT. These goods fall under the restricted items list in the ITC (HS) classification of the Foreign Trade Policy. Such items may include machinery, electronics, defense equipment, chemicals, minerals, or dual-use goods that can impact safety, the environment, or national security.

The DGFT authorization ensures that these restricted goods move through legal channels only. Before trading, importers or exporters must obtain a restricted import authorization or restricted export authorization from the DGFT portal in India. This control system helps stop illegal trade, smuggling, or misuse of restricted materials and ensures that India's global trade stays safe and compliant.

In India, every product that is imported or exported falls under a specific category. These categories help decide whether a DGFT license is needed or not.

• Free Items

Some goods are called Free Items. These can be easily imported or exported without any DGFT license. Common examples include daily-use items like clothes, toys, stationery, and other household goods. Businesses can trade these items freely as they do not require any special approval.

• Restricted Items

Certain goods are not freely allowed and need special permission from the DGFT. These are called Restricted Items. Anyone who wants to trade such goods must apply for a DGFT license for restricted import or export before making or selling them. Items like chemicals, electronic gadgets, medical devices, machinery, and tyres often fall under this group.

• Prohibited Items

Some goods are strictly banned and cannot be imported or exported at all. These are known as Prohibited Items. Examples include illegal drugs, banned chemicals, and materials that can harm national security.

Note: In a few cases, even if a DGFT license is given, extra approvals may also be needed from other authorities like the Bureau of Indian Standards (BIS), Drug Controller, or the Ministry of Environment, Forest and Climate Change (MoEFCC).

Getting a DGFT license for restricted import or export gives many benefits to traders. It helps them follow trade rules, avoid legal problems, and grow their business safely. Below are the main benefits explained:

• Legal Authorization: A DGFT license gives official permission to trade goods that are listed as restricted. It makes the business legal under government laws and helps traders work without any fear of penalties or seizures.
• Trade Compliance: Holding a DGFT authorization makes sure every trade follows India's Foreign Trade Policy. It keeps all import and export work legal and safe. This helps companies stay away from mistakes, rule breaks, or fines.
• Market Access: A DGFT import license or DGFT export license gives access to new and special markets. Traders can sell or buy restricted goods in India and other countries easily. It helps expand business and create global connections.
• Reputation and Trust: Possessing a DGFT license builds trust among global buyers, customs officers, and trade partners. It shows that the business works under clear and honest trade practices.
• Government Support: Traders who have a DGFT license often get extra help from government offices. Their papers get checked faster, and officials guide them at every step. This makes the whole process easy, quick, and free from mistakes during import or export.
• Risk Avoidance: A valid DGFT authorization protects traders from risks like fines, confiscation, or shipment delays. It ensures all activities stay legal and approved, reducing the chance of facing trade disputes or penalties.

What Are the Prerequisites for Applying for a Restricted Imports/Exports Authorisation?

Before applying for a DGFT restricted import export license, certain basic conditions must be fulfilled. These steps make sure that all information is correct and verified before starting the DGFT online process.

• The DGFT user account must be connected with a valid Importer Exporter Code (IEC) number.
• A registered DSC is required to sign the online form securely on the DGFT portal in India.
• PAN, GST registration, and business address must match the official documents submitted.

These are the restricted items under dgft license:

The documents required for obtaining a DGFT license for  restricted items import or export are:

• IEC Certificate
• PAN Card and GST Registration Certificate
• Product details with ITC (HS) code
• Purchase order or proforma invoice
• End-use certificate or justification letter
• NOCs from relevant ministries (if applicable)
• Board resolution or authorization letter (for companies)
• Any sector-specific clearance or license

The DGFT authorization process is simple and can be done online through the DGFT portal of India. Each step ensures full compliance and proper verification.

• Login to DGFT Portal: Go to the official DGFT portal in India and sign in using the IEC-linked account. This starts the DGFT online process for restricted import or export.
• Select Application Type: Click on "Import/Export Authorization for Restricted Items" in the service list. This opens the form for getting a restricted import authorization or restricted export authorization.
• Enter Product Details: Write the product name, ITC (HS) code, country details, and reason for trading the restricted item. Please give a short and clear explanation for importing or exporting it.
• Upload Supporting Documents: Upload all DGFT documents such as the invoice, end-use certificate, and NOCs from the required government departments. Make sure every file is clear and in the correct format.
• Attach Digital Signature: Use a valid Digital Signature Certificate (DSC) to sign the form online. This confirms that the information and documents are genuine and approved.
• Pay DGFT Fees: Pay the DGFT fees through safe online options like net banking or card payment. The fee depends on the total value of goods being traded.
• Application Review and Approval: Once the application is submitted, DGFT officers check it carefully. If everything is correct, the DGFT trade license is issued online and can be downloaded from the DGFT portal.

The DGFT validity period shows how long the license can be used. A DGFT license for restricted items normally stays active for 12 months from the date it is given. All import and export work must be finished within this time to keep the trade legal and smooth. If any shipment is delayed or incomplete after this period, a new DGFT authorization or renewal must be requested.

This DGFT validity ensures that every restricted import authorization or restricted export authorization is used within proper monitoring. Timely renewal helps businesses avoid penalties or documentation issues under the DGFT registration system.

Renewal of DGFT License for Restricted Import or Export

When a DGFT license is about to expire, a renewal request should be made before it expires. The trader needs to tell the reason for the delay and upload the latest DGFT documents, like invoices and certificates. After checking the details, DGFT usually extends the license for another 6 to 12 months. Renewal ensures the continuous validity of the DGFT import license or DGFT export license. It allows businesses to complete pending trade under lawful conditions without any breaks. Keeping the license active maintains smooth business flow and ensures compliance with India's foreign trade policy.

The DGFT fees depend on the total trade value and the type of goods being imported or exported. Payment is made online through the secure payment gateway on the DGFT portal. Generally, the DGFT fees start from ₹500 and can go up to ₹1,00,000 depending on the product category and transaction size. 

Submitting the correct DGFT fees ensures that the DGFT trade license is processed quickly. Accurate payment and documentation support faster approval under the DGFT online process for restricted trade.

Corpseed is one of the top consulting firms, offering comprehensive assistance in import and export compliance. Our team guides businesses through every step of getting a DGFT license for restricted import or export. With expert support, the process becomes smooth, fast, and hassle-free. Here’s how we help:

• Expert Guidance: We provide complete guidance on DGFT rules, restricted items, and trade regulations to help businesses understand every step clearly.
• Document Preparation: Our experts help prepare and check all DGFT documents like invoices, NOCs, and certificates to ensure they meet government standards.
• Application Filing: We handle the DGFT online process, including filling out forms, uploading documents, and submitting applications correctly on the DGFT portal India.
• End-to-End Assistance: We manage the process from start to finish, from DGFT registration to final approval, ensuring zero errors and quick results.
• Follow-Up and Updates: Our team regularly follows up with DGFT officials and keeps businesses informed about the status of their DGFT authorization.
• Renewal Support: We assist in timely renewal of DGFT licenses, helping traders avoid delays or lapses in validity.