Paragraphs 2 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.
Paragraph 2.08 of the Policy says restricted goods or services can be exported or imported only under an authorisation or a notified procedure. Paragraph 2.09 says that where an authorisation is needed for import, only the actual user may import, unless the DGFT dispenses with the condition. The Handbook sets out the rules for transferring imported goods (paragraph 2.46), applications (paragraph 2.47), the EXIM Facilitation Committee (paragraph 2.48) and export authorisation for non-SCOMET restricted items (paragraph 2.68).
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. The procedure is taken from Chapter 2 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Notifications, Public Notices and Trade Notices should be checked before you act. No item-wise policy is stated. If a restricted item is involved in your trade, our restricted items import and export licence service can take up the authorisation.
A restricted good or service may be exported or imported only under an authorisation or permission, or by the procedure prescribed in a Notification or Public Notice (paragraph 2.08). Where an import needs an authorisation, only the actual user may import, unless the DGFT dispenses with the condition (paragraph 2.09). Under the Handbook, surplus goods held under the actual user condition can be transferred only with prior permission, except in five cases (paragraph 2.46(b)), one of which is after two years from import.
What the Policy says
Paragraph 2.08: restricted goods and services
Any goods or service whose export or import is "restricted" may be exported or imported only in accordance with (a) an authorisation or permission, or (b) the procedure prescribed in a Notification or Public Notice issued in this regard. The paragraph gives no list of restricted items; that is in ITC(HS). The grounds on which a restriction may be imposed are in paragraph 2.07, explained in our article on the principles of restrictions.
Paragraph 2.09: actual user condition
Goods which are importable without any restriction may be imported by any person. However, if an import requires an authorisation, the actual user alone may import the goods, unless the actual user condition is specifically dispensed with by the DGFT. In the Policy, "actual user" is defined in Chapter 11, and the condition also appears among the terms of an authorisation in paragraph 2.10(b). The Foreign Trade (Regulation) Rules, 1993 deal with the use of imported goods in rules 13 and 14: see rules 13 and 14 of the Foreign Trade (Regulation) Rules, 1993. The Policy itself is made under section 5 of the Act.
What the Handbook requires
Paragraph 2.46: transfer of imported goods
(a) Prior permission is required to transfer imported goods that are under the actual user condition and have become surplus to the actual user's needs. The permission is from the issuing authority. The request must give, with supporting documents: (i) reasons for transfer; (ii) name, address, IEC number and industrial authorisation registration, if any, of the transferee; (iii) description, quantity and value of goods imported and those sought to be transferred; (iv) copies of the import authorisation and bills of entry; and (v) terms and conditions of transfer agreed between buyer and seller.
(b) Prior permission is not required in these cases:
| Case | When no prior permission is needed |
|---|---|
| (i) | Sale or otherwise by the importer of goods importable without an authorisation |
| (ii) | Goods imported with the actual user condition, if they are importable without the condition on the date of transfer |
| (iii) | Goods with the actual user condition, after a period of two years from the date of import |
| (iv) | Imported firearms: after 10 years of import, or on the importer attaining the age of 60 years, subject to the transferee fulfilling the conditions of the Arms Act and Rules |
| (v) | Weapons or firearms imported by a Renowned Shooter (as defined in the policy condition of Chapter 93 of ITC(HS) 2022), to an upcoming shooter certified by the National Rifle Association of India or the Department of Sports, after two years from import; the transferee may later transfer to a buyer certified by the same bodies after one year from the first sale; subject to the Arms Act, 1959 and rules of the State or local police |
Paragraph 2.47: applications for restricted items
(a) An application for an authorisation for import or export of items mentioned as "Restricted" in ITC(HS) may be made online to DGFT Headquarters in ANF 2M (import) or ANF 2N (export), with the documents prescribed there. (b) An application for amendment of an import or export authorisation is also made online to DGFT Headquarters. The forms are named as the paragraph names them; their fields are not described.
Paragraph 2.48: EXIM Facilitation Committee
- (a) A restricted item authorisation may be granted by the DGFT or any other Regional Authority authorised by the DGFT. The DGFT or the RA may take the assistance and advice of a Facilitation Committee, and may seek comments of technical authorities in writing. The Committee consists of representatives of the technical authorities and the Departments and Ministries concerned.
- (b) If so directed by the competent authority, authorisations for a restricted item are issued for import or export through one of the sea ports, air ports, ICDs or LCS, as per the option the applicant indicates in writing. The holder imports at the port specified and thereafter all imports against that authorisation must be through that port, unless the holder gets permission from the Customs authority concerned to import through any other specified port.
- (c) The EXIM Facilitation Committee (EFC) normally meets once every month. Where a case was deferred for want of comments from technical authorities, but no-objection certificates later arrive with no divergence in views, the authorisation is issued with the approval of the Chairman, EFC, and the case is brought to the next EFC meeting for approval on an ex-post facto basis.
Paragraph 2.68: export authorisation for non-SCOMET restricted items
An online application for an export authorisation for restricted items other than those in the SCOMET list may be made in ANF 2N to DGFT Headquarters, with the documents prescribed. The EFC considers applications on merits. SCOMET exports are dealt with in Chapter 10 of the Policy.
A practical example
Granite Bay Labs, an invented laboratory, imported a restricted instrument on an authorisation under the actual user condition. Three years later it upgrades and wants to sell the old instrument. Paragraph 2.46(b)(iii) says goods with the actual user condition can be transferred without prior permission after two years from the date of import, so Granite Bay does not need the issuing authority's permission. Had it wanted to sell after only eight months, it would have needed prior permission under paragraph 2.46(a), supported by the five items of information and documents listed there. Another firm applying for a first authorisation for a different restricted item files ANF 2M online to DGFT Headquarters (paragraph 2.47(a)); if the authorisation names a port, its imports must go through that port (paragraph 2.48(b)).
Need help with an authorisation for a restricted item?
Restricted-item applications go to DGFT Headquarters and may be considered by the EXIM Facilitation Committee, so a complete application with the right documents matters. Our team can help you with a restricted items import and export licence.
Key takeaways
- Restricted goods move only under an authorisation or the notified procedure (paragraph 2.08).
- Where an import needs an authorisation, only the actual user may import, unless dispensed with by the DGFT (paragraph 2.09).
- Transfer of imported goods under the actual user condition needs prior permission, except in five cases (Handbook paragraph 2.46).
- Applications are made online to DGFT Headquarters in ANF 2M (import) or ANF 2N (export) (Handbook paragraph 2.47).
- The EFC normally meets monthly and may approve ex-post facto (Handbook paragraph 2.48).
Read next
- Paragraph 2.07: principles of restrictions
- Paragraphs 2.10, 2.12 and 2.13: terms, validity and date of reckoning of authorisation
- Rules 13 and 14 of the Foreign Trade (Regulation) Rules, 1993: use of imported goods and false declarations
- Section 6 of the Foreign Trade (Development and Regulation) Act, 1992: Director General of Foreign Trade
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.