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.
Paragraphs 2.16 to 2.20 sit under the heading "Prohibitions on Trade (Country, Organisations, Groups, Individuals etc. and Product Specific)". They carry into the Policy a set of United Nations Security Council measures: arms to and from Iraq, trade with ISIL and Al Qaida-linked entities, trade with the Democratic People's Republic of Korea (DPRK), trade with Iran, and import of charcoal from Somalia. Paragraph 2.18 is supported by Appendix I, printed at the end of the chapter.
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. Later Notifications, Public Notices and Trade Notices should be checked before you act. This article describes only what these paragraphs print; it states nothing about the United Nations measures as they stand today, and the resolutions and documents named should be read from their sources. If a transaction touches any of the countries or entities named, take advice through a legal consultation before proceeding.
The paragraphs make import and export of arms and related material from or to Iraq prohibited (with a no-objection route for exports to the Government of Iraq), prohibit trade in oil, refined oil products, modular refineries and cultural, scientific and religious items with ISIL, Al Nusrah Front and associated entities, prohibit direct or indirect import and export from or to the DPRK as set out in Appendix I, allow trade with Iran in listed items only subject to Annex-B of Resolution 2231 (2015), and prohibit import of charcoal from Somalia, with a declaration to Customs.
What the Policy says
Paragraph 2.16: arms and related material, Iraq
Notwithstanding the policy on arms and related material in Chapter 93 of the ITC(HS), import and export of arms and related material from or to Iraq is "Prohibited". Export of arms and related material to the Government of Iraq is permitted subject to a No Objection Certificate from the Department of Defence Production.
Paragraph 2.17: ISIL, Al Nusrah Front and associated entities
In compliance with United Nations Security Council Resolution No. 2199 [2015], trade in oil and refined oil products, modular refineries and related materials, and items of cultural (including antiquities), scientific and religious importance is prohibited with the Islamic State in Iraq and the Levant , Al Nusrah Front and other individuals, groups, undertakings and entities associated, directly or indirectly, with Al Qaida.
Paragraph 2.18: the DPRK, with Appendix I
Direct or indirect export and import of items, whether or not originating in the DPRK, to or from the DPRK is detailed in Appendix I of the chapter. Appendix I is part of the chapter text and is divided into these parts:
| Part | Subject | What it covers (as printed) |
|---|---|---|
| (A) | Prohibition on export | Direct or indirect supply, sale, transfer or export to the DPRK of: (i) battle tanks, armoured combat vehicles, large calibre artillery systems, combat aircraft, attack helicopters, warships, missiles or missile systems as defined for the UN Register on Conventional Arms, with related material including spare parts; (ii) all arms and related material, including small arms and light weapons; (iii) items, materials, equipment, goods and technology in the UNSC and IAEA documents listed (items 1 to 10, among them S/2006/853, Part B of S/2009/364, Annex III of Resolution 2094 (2013), S/2016/1069 and INFCIRC/254/Rev.12/Part1 and Rev.9/Part2), and other items determined by the Central Government that could contribute to nuclear, ballistic missile or other weapons of mass destruction programmes; (iv) luxury goods, including those in the Annexes IV of Resolutions 2094 (2013), 2270 (2016) and 2321 (2016); (v) items determined by the Central Government, except food or medicine, that could directly contribute to the DPRK's operational capabilities of its armed forces, subject to exemptions in paragraph 8 (a) and (b) of Resolution 2270 (2016) |
| (B) | Prohibition on import | Direct or indirect procurement or import from the DPRK of items, whether or not originating there, covered in (A)(i), (ii), (iii) and (v) |
| (C) | Sectoral prohibitions (export) | New helicopters and new or used vessels (except as approved in advance by the Committee case by case), aviation fuel, condensates and natural gas liquids, refined petroleum products, crude oil, and industrial machinery, transportation vehicles and iron, steel and other metals, in each case subject to the Resolution paragraphs cited |
| (D) | Sectoral prohibitions (import) | Coal, iron and iron ore; gold, titanium ore, vanadium ore and rare earth minerals; copper, nickel, silver and zinc; statues (unless the Committee approves in advance case by case); seafood; lead and lead ore; textiles; and food and agricultural products, machinery, electrical equipment, earth and stone, wood and vessels, in each case subject to the Resolution paragraphs cited |
The Explanation at the end of Appendix I says: UNSC means the United Nations Security Council; IAEA means the International Atomic Energy Agency; "Committee" means the Committee of the UNSC set up under paragraph 12 of Resolution 1718 (2006); and "Resolution" means the UNSC Resolutions under Chapter VII of the Charter on the DPRK, namely 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2231 (2016), 2356 (2017), 2371 (2017), 2375 (2017) and 2397 (2017). The letters (a), (b), (c) and (d) of the Explanation are mixed in the copy; the Explanation is given here as printed. The HS code references in Appendix I are those of the Policy's own text and no other item-wise policy is stated here.
Paragraph 2.19: Iran
(a) Direct or indirect export to Iran or import from Iran of any item, material, equipment, goods and technology mentioned in the following documents is permitted subject to the provisions in Annex-B to United Nations Security Council Resolution 2231 (2015): (i) items listed in INFCIRC/254/Rev.14/Part1 and INFCIRC/254/Rev.11/Part 2 (IAEA documents) as updated by the UNSC and IAEA from time to time; and (ii) items listed in S/2015/546 (a UN Security Council document) as updated from time to time. (b) The UN and IAEA documents are available on the UN Security Council and IAEA websites.
The paragraph is a "permitted subject to" provision, not a general prohibition; it makes the listed items depend on the conditions of Annex-B. Rupee realisation for exports to Iran is dealt with in paragraphs 2.52 and 2.53, notified afresh on 20 August 2026; see our article on paragraphs 2.52 and 2.53.
Paragraph 2.20: charcoal from Somalia
Direct or indirect import of charcoal is prohibited from Somalia, irrespective of whether or not such charcoal has originated in Somalia . Importers of charcoal must submit a declaration to Customs that the consignment has not originated in Somalia.
Source of the power
These paragraphs state no section of the Foreign Trade (Development and Regulation) Act, 1992. The Policy is made under section 5 of the Act, and the power to prohibit imports and exports is the subject of our article on sections 3 and 4 of the Act. The Customs Act has a separate power over prohibited goods: see section 11 of the Customs Act, 1962.
A practical example
Delta Reed Trading, an invented firm, receives an enquiry to buy charcoal and to ship an industrial machine to a buyer who says that the goods are for the DPRK through a third country. On the charcoal, paragraph 2.20 prohibits direct or indirect import from Somalia whether or not the charcoal originated there, and any importer of charcoal must give Customs a declaration that the consignment did not originate in Somalia. On the machine, paragraph 2.18 and Appendix I (C) prohibit direct or indirect export of industrial machinery to the DPRK, and the "indirect" route through a third country does not take it outside the words. Before replying to either enquiry, the company should have the facts and the end user checked.
Need help with a trade-restriction question?
Paragraphs of this kind turn on who the end user is and what route the goods take. Our team can read the paragraph and the facts with you in a legal consultation.
Key takeaways
- Import and export of arms and related material from or to Iraq is prohibited, with a no-objection route for exports to the Government of Iraq (paragraph 2.16).
- Trade in oil, refined oil products, modular refineries and certain cultural, scientific and religious items with ISIL, Al Nusrah Front and associated entities is prohibited (paragraph 2.17).
- Direct or indirect export and import to or from the DPRK is prohibited as set out in Appendix I (paragraph 2.18).
- Trade with Iran in listed items is permitted only subject to Annex-B of Resolution 2231 (2015) (paragraph 2.19).
- Charcoal import from Somalia is prohibited; importers give a declaration to Customs (paragraph 2.20).
Read next
- Paragraphs 2.15 and 2.61: NCLT proceedings and the Settlement Commission
- Paragraphs 2.20A and 2.20B: imports from Pakistan and goods made with forced labour
- Section 11 of the Customs Act, 1962: power to prohibit import or export of goods
- Sections 3 and 4 of the Foreign Trade (Development and Regulation) Act, 1992
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.