Foreign Trade explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This Order takes certain imports and exports out of the Foreign Trade (Regulation) Rules, 1993. Clause 3(1) lists the imports, such as goods bought by Government for defence, ship's stores, transit goods, passenger baggage and goods brought in on a carnet. Clause 3(2) lists the exports, such as goods exported by or under the authority of the Central Government, personal baggage and ship's equipment. It was first made on 31 December 1993 (S.O. 1056(E)) and was restated in full by an Amendment Order dated 25 July 2017, made under sections 3 and 4 of the Act. This article explains the Order as restated in 2017. It exempts from the Rules; it does not exempt from the Act or the Policy.
The Order is made under section 3, read with section 4, of the Act. Clause 3(1) says "Nothing contained in the Rules shall apply to the import of any goods" in the listed cases, items (a) to (s); clause 3(2) says the same for the listed exports, items (a) to (k). It is an exemption from the Rules. Several items add that other prohibitions and regulations still apply, and the Order defines "Import Trade Regulations" as the Act, the rules and order and the policy.
What the Order is and where it comes from
Section 3(2) of the Act lets the Central Government, by Order published in the Official Gazette, prohibit, restrict or otherwise regulate imports and exports "subject to such exceptions, if any, as may be made by or under the Order". Section 4 continues Orders made under the Imports and Exports (Control) Act, 1947 so far as they are not inconsistent with the Act. This Order is made "in exercise of the powers conferred by section 3, read with section 4" and amends the 1993 Order "to read as under". See our article on sections 3 and 4.
Three points about the text. It calls itself an "Amendment Order" but sets out clauses 1 to 3 in full, so it is read as the Order as it now stands. The copy consulted is headed "To be published" and carries no S.O. number, so it is cited by its date, 25 July 2017; clause 1(2) says it comes into force on publication in the Official Gazette. And clause 2(c) defines "Rules" as "the Foreign Trade (Regulation) Amendment Rules, 2015", naming only the amending rules; this is flagged and quoted as printed. Clause 2(b) defines "Import Trade Regulations" as "the Act and the rules and order made there under and the export and import policy".
What "exempt" means here
Clauses 3(1) and 3(2) say "Nothing contained in the Rules shall apply". So the Rules on licence conditions, fees, refusal, declarations and the rest do not apply to these goods. The Order does not say that the Act, the Policy or customs law does not apply. Item 3(1)(g), proviso (ii), says "nothing contained in this order will exempt any goods from the Import Trade Regulations"; the second provisos to items 3(1)(o) and (p) keep "any other prohibition or regulation" in force; and item 3(1)(i) is "subject to compliance of other Laws/Rules/Orders/Regulations in force". A person within the Order is outside the Rules but must still comply with the Act, the Policy as it applies and other laws such as customs law. Check the current law for each other law named. If you are unsure whether a shipment falls within the Order or needs a licence under the Policy, a restricted items import-export licence adviser can help you check.
Clause 3(1): imports
| Item | Imports to which the Rules do not apply (short form) |
|---|---|
| (a) | By the Central Government or its agencies and undertakings for defence purposes |
| (b) | By the Central Government, a State Government, a statutory corporation, a public body or a Government undertaking run as a joint stock company |
| (c) | The same bodies, where orders are placed through the Directorate General Supplies and Disposals, New Delhi |
| (d) | Goods in transit, or imported and bonded, for re-export as ship's stores to a country other than Nepal and Bhutan, including those released for duty-exempt diplomatic, consular and United Nations use |
| (e) | Goods imported and bonded on arrival for sale at approved duty-exempt shops, to outgoing or incoming passengers |
| (f) | Goods in transit through India by post or otherwise, or redirected, to a destination other than Nepal and Bhutan, always in postal or customs custody |
| (g) | Goods for transmission across India by air to Afghanistan or by land to another country other than Nepal and Bhutan, under claim for exemption or refund of duty, with two provisos |
| (h) | Passenger baggage to the extent admissible under the Baggage Rules, with a proviso on re-export of a tourist's high-value articles |
| (i) | Imports through the post or otherwise for personal use, subject to compliance with other laws |
| (j) | By or on behalf of diplomatic personnel, consular officers and Trade Commissioners in India who are exempt from customs duty |
| (k) | Goods from any country exempted from customs duty on re-importation under section 20 of the Customs Act, 1962 |
| (l) | Indian-made goods and foreign parts exported and received back by the manufacturer for repair and re-export, with provisos |
| (m) | By officials of the United Nations and its specialised agencies who are exempt from customs duty |
| (n) | Deleted |
| (o) | Vehicles under the customs convention on temporary importation of private road vehicles, and their parts, with provisos |
| (p) | Goods imported temporarily for fairs and exhibitions against ATA carnets, to be exported within six months of clearance or such extended period as the Central Government may allow |
| (q) | Goods imported under the Treaty or Agreement on Transit with Nepal and Bhutan |
| (r) | Indian-made goods, or goods sent by Government, for repair and re-export to Indian Embassies or Government offices abroad |
| (s) | Food grains imported by the Food Corporation of India, with a declaration of Central Government approval at clearance |
| (t) | Deleted |
Printing slips and gaps: item (l)(ii) breaks off mid-sentence ("to the effect in accordance with Customs Notification"), so what the bond must contain is not clear. Item (o)(ii) prints "trip tyque or Carnel-De-Passage". They are flagged, not corrected. The conventions, the Baggage Rules, 2016 (superseded from 2 February 2026 by the Baggage Rules, 2026, Notification No. 14/2026-Customs (N.T.)), the United Nations (Privileges and Immunities) Act, 1947 and the customs notifications named are other instruments; check the current law for each.
For the customs side, see our guides on baggage allowances for travellers and import of samples and gifts. They explain customs law and not this Order.
Clause 3(2): exports
| Item | Exports to which the Rules do not apply (short form) |
|---|---|
| (a) | Any goods exported by or under the authority of the Central Government |
| (b) | Any goods other than food-stuffs constituting the stores or equipment of any outgoing vessel or conveyance |
| (c) | Bona fide personal baggage of any person, including a passenger or crew member, going out of India (wild life as defined in the Wild Life (Protection) Act, 1972 excluded) |
| (d) | Deleted |
| (e) | Goods transshipped at an Indian port after being manifested for transshipment at despatch from abroad |
| (f) | Goods imported and bonded on arrival for re-export to a country other than Nepal and Bhutan |
| (g) | Goods in transit through India by post, or redirected by post, to a destination other than Nepal and Bhutan, always in postal custody |
| (h) | Goods imported without a valid import licence and exported under an order of the proper officer of customs |
| (i) | Products approved for manufacture in and export from trade zones, export processing zones and export-oriented units, with carve-outs for certain textile items and rupee payment trade; approval conditions bind the unit |
| (j) | Export of a named blood group, for research or emergency treatment, by the Director of a named reference laboratory on a certificate issued by him in each case |
| (k) | Export of samples of lubricating oil additives, lube oil, crude oil and related products by three named companies to a named laboratory abroad for evaluation and testing |
Items (j) and (k) name particular bodies and companies and are not a general rule. For units and zones, see our guides on export-oriented units and special economic zones.
How to use the Order
Find the item and meet its provisos (re-export, custody, time limits, declarations are conditions of the exemption); remember that the Order removes the Rules only; and do not stretch the list.
Example: Delta Fabrication (an invented firm) brings a machine in temporarily for a trade fair against an ATA carnet. Item 3(1)(p) takes the import outside the Rules if the machine is exported within six months of clearance or such extended period as the Central Government allows, and the notification and the ATA Convention are not contravened. If the machine is sold at the fair, the exemption does not cover it.
The Policy in the background
FTP 2023, paras 2.25 to 2.27 (in the copy consulted) deal with samples, gifts and passenger baggage under the Policy. They can change; check the current text.
Need help with a shipment that may be outside the Rules?
If you are not sure whether your import or export is within the Order, or whether the Policy requires an authorisation, our restricted items import-export licence service can help you check the position. Later amendments to the Act, the Rules, the Order and the Policy should be checked.
Key takeaways
- The Order exempts listed imports (clause 3(1)) and exports (clause 3(2)) from the Foreign Trade (Regulation) Rules.
- It is made under sections 3 and 4 of the Act; it was first made as S.O. 1056(E) on 31 December 1993 and restated on 25 July 2017.
- It exempts from the Rules only. The Act, the Policy and other laws may still apply, as items (g), (i), (o) and (p) show.
- Several items carry conditions: re-export, custody, time limits or declarations.
- Items 3(1)(n) and (t) and 3(2)(d) are deleted; some items name particular bodies or companies.
Read next
- Sections 3 and 4: power to prohibit, restrict and regulate imports and exports
- Rules 1 and 2: short title and definitions
- Section 19: power to make rules
- Import of samples and gifts
Disclaimer: Based on the Foreign Trade (Development and Regulation) Act, 1992 as enacted read with the Amendment Act of 2010, and on the Foreign Trade (Regulation) Rules, 1993 as notified read with the Amendment Rules of 2015, as consulted on 2 October 2026. Later amendments, the current Foreign Trade Policy and the Handbook of Procedures should be checked. This article is general information, not legal advice; check the official text before acting.