1. Import Policy in India
Presented by
Sunil K. Mishra

2. CONTENTS
• Brief
• Import?
• Import policies
• Advantages and Disadvantages
• Case
• References
07-May-14 2

3. Brief
• Exim policy or Foreign Trade Policy is a set of guidelines and instructions
established by the DGFT in matters related to the import and export of goods in
India.
• The Foreign Trade Policy of India is guided by the Export Import in known as in
short EXIM Policy of the Indian Government and is regulated by the Foreign Trade
Development and Regulation Act, 1992.
DGFT (Directorate General of Foreign Trade) is the main governing body in
matters related to Exim Policy. The main objective of the Foreign Trade
(Development and Regulation) Act is to provide the development and regulation of
foreign trade by facilitating imports into, and augmenting exports from India.
Foreign Trade Act has replaced the earlier law known as the imports and Exports
(Control) Act 1947.
Source: http://www.exim-policy.com/07-May-14 3

4. Import???
• The term import is derived from the conceptual meaning as to bring in the goods
and services into the port of a country.
• The buyer of such goods and services is referred to an "importer“
 Types:
There are two basic types of import:
• Industrial and consumer goods
• Intermediate goods and services
Source: http://www.importerspages.com/
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5. Import Policies
 Imports not involving remittance of Foreign Exchange:
• Paintings and other display articles required for competitions or exhibitions
• Food-stuffs, medicines, clothing and blankets received by any charitable
organization as a gift from any philanthropic organization or person abroad
• Import of food parcels (except alcohol and tobacco) by foreign citizens, ordinarily
residing in India, subject to a limit of Rs. 1,00,000/- per year for their own use
• Goods received as free gifts by the Indian Red Cross Society from abroad, provided
such goods are exempt from customs duty
• Relief supplies and packages received as gifts through a Government agency or any
other approved agency
Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf
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6.  Indian Quality Standards:
Mandatory Indian Standards of Bureau of Indian Standards (BIS):
Quality of the products that are subject to mandatory Indian Standards, as
applicable to domestic goods, shall be required to comply with quality specified for
the product as per same Indian Standards. For compliance of this requirement, all
manufactures/exporters of these products to India, shall be required to obtain BIS
license for using Standards mark on their product.
Air Emission and Noise Standards:
Import of Generator Sets will be subject to the air emission standards & noise
standards of the Environment Protection Rules, 1986 notified vide the following
Notifications:
(i) GSR 448(E) dated 12.7.2004 (ii) GSR 628(E) dated 30.8.2001 (iii) GSR 682(E)
dated 5.10.1999
Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf07-May-14
6

7.  Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989:
All primary agricultural products will be subject to a Bio Security & Sanitary-
Phytosanitary import permit, to be issued by Department of Agriculture and Co-
operation, Ministry of Agriculture, as per conditions of Plants, Fruits and Seeds
(Regulation of Import into India) Order, 1989
 Food Safety & Standards Act, 2006:
Quality and Packaging requirements:
Import of all such edible/food products including tea, domestic sale and
manufacture of which are governed by Food Safety & Standards Act, 2006
 Shelf Life
At the time of importation, the products must have a valid shelf life of not less than
60% of its original shelf life. Shelf life of the product is to be calculated, based on
the declaration given on the label of the product, regarding its date of manufacture
and the due date for expiry. However, this condition of 60% shelf life stipulated
above is not applicable to re-import for export purpose
Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf
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8.  Packaged Products:
All prepackaged commodities, imported into India, shall in particular carry the
following declarations:
• Name and address of the importer
• Generic or common name of the commodity packed
• Net quantity in terms of standard unit of weights and measures
• Month and year of packing in which the commodity is manufactured or packed or
imported
• Maximum retail sale price(Inc.taxes) at which the commodity in packaged form
may be sold to the ultimate consumer
 Meat and Poultry Products:
Beef and Products containing Beef
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9.  Cigarettes or any other Tobacco product:
Import of cigarette or any other tobacco product shall be subject to the provisions
contained in the Cigarettes and other Tobacco Products (Packaging and Labeling)
Amendment Rules, 2009, as notified by the Ministry of Health & Family Welfare
 Multichannel GSM/CDMA receivers, transmitters and trans-receivers:
Multichannel GSM/CDMA receivers, transmitters and trans-receivers capable of
receiving or transmitting or both in two or more frequencies simultaneously, shall
be “Restricted” for imports
 Environmental Related:
Ozone Depleting Substances: Import of products, equipment containing Ozone
Depleting Substances (ODS) will be subject to- no person shall import or cause to
import any product which was made with or contain Ozone Depleting Substances,
unless he obtains an import license issued by the DGFT07-May-14 9

10. Advantages
 Reduce dependence on existing markets
 Exploit international trade technology
 Extend sales potential of existing products
 Maintain cost competitiveness in your domestic market
Source: http://shippingnewsandviews.wordpress.com/
07-May-14 10

11. Disadvantages
 Importation of items from other countries can increase the risk of getting them
which is no more common in the warm weather.
 it leads to excessive competition
 It also increases risks of other diseases from which the country is exporting the
goods.
Source: http://blogs.exportersindia.com
07-May-14 11

12. Case
 Govt. modifies policy for import of cars, bikes for race events:
WED, JAN 08 2014
 The government has modified the trade policy to facilitate imports of cars and
motorcycles for racing events.
 Cars and motorcycles imported for racing events will not be permitted to ply on
public roads, said the notification issued by Directorate General of Foreign Trade
(DGFT) on Jan08,2014.
 It said such vehicles should only be used for the purpose for which they are
imported.
Source: http://www.livemint.com/
07-May-14 12

13.  The move assumes significance in view of the problem being faced by the
participants in events like Formula One. “Vehicles imported under this provision
will not be registered CMV (Central Motor Vehicle)Act/Rules, nor be alienated/sold
to any individual/organization/institution, etc. anywhere in India. These vehicles
shall not ply on public roads and can only be used within the enclosed premises
with requisite safety precautions and will not be engaged in any sort of commercial
activities,” DGFT said
 It also said the importer shall be required to execute a bond with customs with
adequate security/surety to re-export the vehicle(s) within 30 days of the
completion of the event
Source: http://www.livemint.com/
07-May-14 13

14. References
[1] Policies regarding import
dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf [Retrieved on 03.05.2014]
[2] Brief about EXIM
http://www.exim-policy.com/ [Retrieved on 03.05.2014]
[3] Advantages of import
http://shippingnewsandviews.wordpress.com/2013/02/19/five-major-advantages-of-
import-export-business-and-international-trade/ [Retrieved on 05.05.2014]
[4] Case of import in India
http://www.livemint.com/Politics/joMMHCTHBV5fiG98aXbAIJ/Govt-modifies-
policy-for-import-of-cars-bikes-for-race-even.html [Retrieved on 07.05.2014]
[5] Disadvantages of import
http://blogs.exportersindia.com/2012/01/12/benefits-of-importing-and-exporting/
[Retrieved on 06.05.2014]
[6] http://www.importerspages.com/ [Retrieved on 06.05.2014]
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