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 2.10 of the Policy lists the terms an authorisation may carry, paragraph 2.12 allows goods already arrived to be cleared against a later authorisation, and paragraph 2.13 says no one can claim an authorisation as a right. The Handbook then fixes the validity of each kind of authorisation in months (paragraph 2.16), the date on which an import or export is reckoned (paragraph 2.17, with paragraphs 11.11 and 11.12), the validity of authorisations and scrips on the date of import, export or debit (paragraphs 2.18 and 2.19), and how an authorisation is denominated (paragraph 11.01).
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), and from Chapter 11 of the Handbook (file of April 2023, as first issued), consulted on 2 October 2026. Later Notifications, Public Notices and Trade Notices should be checked before you act. For restricted items and their authorisations, our restricted items import and export licence service can help.
An authorisation carries terms such as description, quantity and value, export obligation, and a Bank Guarantee, Legal Undertaking or Bond (paragraph 2.10). Its validity runs from the date of issue and differs by type: 24 months for export authorisations for restricted (non-SCOMET) goods, SCOMET export and EPCG; 18 months for import authorisations for restricted items; 12 months for most Advance Authorisations (Handbook paragraph 2.16). The date of an import or export is decided by the date of shipment or dispatch, and for benefits under the Policy the Let Export Order date is the date of export (Handbook paragraph 2.17).
What the Policy says
Paragraph 2.10: terms and conditions of an authorisation
Every authorisation includes "either all or some" of the following terms, as applicable to the paragraph under which it was issued, in addition to other conditions that may be specified:
- (a) description, quantity and value of goods;
- (b) actual user condition, as defined in Chapter 11;
- (c) export obligation;
- (d) minimum value addition to be achieved;
- (e) minimum export or import price;
- (f) Bank Guarantee, Legal Undertaking or Bond with the Customs authority or Regional Authority, as in paragraph 2.35 of the Policy; and
- (g) validity period of import or export as specified in the Handbook.
See rule 6 of the Foreign Trade (Regulation) Rules, 1993 on conditions of a licence and section 9 of the Act; the Policy is made under section 5.
Paragraph 2.12: clearance of goods against a later authorisation
Goods already imported, shipped or arrived in advance, but not cleared from Customs, may be cleared against an authorisation issued afterwards, after first being warehoused against a Bill of Entry for Warehousing and then cleared for home consumption. The facility is not available to restricted items or items traded through State Trading Enterprises, unless specifically allowed by the DGFT.
Paragraph 2.13: authorisation is not a right
No person can claim an authorisation as a right. The DGFT or Regional Authority has power to refuse to grant or renew it in accordance with the Act, the Rules and the Policy.
What the Handbook requires
Paragraph 2.16: validity from the date of issue
Unless specified otherwise, the validity of import and export authorisations from the date of issue is:
| Type of authorisation | Validity period |
|---|---|
| (i) Export authorisation for restricted (non-SCOMET) goods | 24 months |
| (ii) Export authorisation for SCOMET items | 24 months |
| (iii) Import authorisations for restricted items | 18 months |
| (iv) EPCG authorisation | 24 months |
| (v) Advance Authorisation for deemed exports | Co-terminus with the contracted duration of project execution, or 12 months, whichever is more |
| (vi) Advance Authorisation (other than (v)), DFIA, Replenishment Authorisation for Gems and Jewellery as per Chapter 4 | 12 months from the issue date |
| (vii) Registration certificate for import or export under paragraph 1.05 of the Policy (transitional arrangement) | Original shipment period mentioned in the ICLC, or as stipulated by the DGFT |
The EXIM Facilitation Committee and the Inter Ministerial Working Group (for SCOMET items) may approve a shorter or longer duration in specific cases, for contractual obligations, delivery schedules or on the recommendation of the Ministry or agency concerned. Under clause (b), the DGFT may fix a longer or shorter validity for a specific authorisation or class; extension or revalidation in such cases is only by the DGFT. The table's figures are those of paragraph 2.16, which applies "unless specified otherwise"; a scheme chapter may state its own.
Paragraph 2.17: date of reckoning
(a) The date of import is decided by the date of shipment or dispatch from the supplying country, as given in paragraph 11.11 of the Handbook, and not the date of arrival of goods at an Indian port. (b) The date of export is decided by the date of shipment or dispatch from India, as given in paragraph 11.12; however, for benefit under the Policy, the Let Export Order (LEO) date is the date of reckoning of export. Paragraph 1.05(b) of the Policy relies on this paragraph; see our article on paragraphs 1.00 to 1.05.
Paragraphs 2.18 and 2.19: validity on the relevant date
An authorisation must be valid on the date of import, and the export obligation period on the date of export; Advance Authorisation or EPCG holders may export after that period at their own risk, and such exports count only if the authority approves an extension. Scrips must be valid on the date on which duty is actually debited.
Paragraph 11.01: denomination
(a) The CIF value of an authorisation and the FOB value of the export obligation are indicated both in rupees and in convertible foreign currency at the exchange rates prevailing on the authorisation issue date. (b) Remittance of foreign exchange and discharge of export obligation are regulated in convertible foreign currency or in Indian rupees "as per para 2.52 and 2.53 of FTP". Paragraphs 2.52 and 2.53 were substituted on 20 August 2026; see our article on paragraphs 2.52 and 2.53. (c) No enhancement in rupee value is needed if the remittance is covered by the CIF value in convertible foreign currency. (d) For Advance Authorisations for exports to ACU countries, the obligation is in ACU dollars; (e) for intermediate supply and deemed export within the country, in Indian rupees.
Paragraphs 11.11 and 11.12: date of shipment or dispatch
| Mode | Imports (11.11) | Exports (11.12(a)) |
|---|---|---|
| Sea | Date on the Bill of Lading | Bulk cargo: Bill of Lading or mate receipt date, whichever is later; containers: on-board Bill of Lading date (with rules for ICD and received-for-shipment); lash barges: Bill of Lading date |
| Air | Date of the Airway Bill, if it shows the date goods left the last airport of the exporting country | Date mentioned by the Customs officer on the Shipping Bill |
| Post parcel | Date stamp of the dispatching office | Date stamped on the postal receipt |
| Registered courier | Date on the courier receipt or waybill | Date on the courier receipt or waybill |
| Rail | For land-locked countries, date of dispatch to the consignee in India | Date of the Railway Receipt |
| Road | - | Date goods crossed the Indian border, as certified by Land Customs |
| Multimodal | Date of handing goods to the first carrier | - |
Paragraph 11.12(b) protects consignments already handed over to Customs from a change that disadvantages exporters, up to the date of the Public Notice or Notification; clause (c) treats goods handed over to Customs within the export obligation period as exported within it; clause (d) repeats the LEO date rule.
A practical example
Teal Harbour Metals, an invented company, holds an import authorisation for a restricted item issued on a given date. Under paragraph 2.16(iii) it is valid for 18 months from issue. A consignment is shipped before the authorisation expires but reaches the Indian port after expiry. Paragraph 2.17(a) reckons the date of import by shipment (the Bill of Lading date for sea cargo, paragraph 11.11), not arrival, so the shipment date is what matters under paragraph 2.18(a). The company cannot treat the authorisation as a right to renewal (paragraph 2.13).
Need help with an authorisation?
Validity, the date of reckoning and the terms in the authorisation are checked at every step, so a mismatch can hold up a clearance. If you need an authorisation for a restricted item or a review of one you hold, our team can help with a restricted items import and export licence.
Key takeaways
- An authorisation carries terms from paragraph 2.10, including description, export obligation and a Bank Guarantee, Legal Undertaking or Bond.
- Validity runs from the date of issue and varies by type: 24, 18 or 12 months in the main cases (Handbook paragraph 2.16).
- The date of import or export is the date of shipment or dispatch, and for benefits under the Policy the LEO date is the date of export.
- An authorisation must be valid on the date of import; a scrip on the date of debit.
- No one can claim an authorisation as a right (paragraph 2.13).
Read next
- Paragraphs 2.08 and 2.09: restricted goods and the actual user condition
- Handbook paragraphs 2.20 to 2.28: revalidation and duplicate authorisation
- Rule 6 of the Foreign Trade (Regulation) Rules, 1993: conditions of licence
- Section 9 of the Foreign Trade (Development and Regulation) Act, 1992: issue, suspension and cancellation of licence
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.