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Paragraphs 2.20A and 2.20B of the Foreign Trade Policy, 2023: the prohibition on imports from Pakistan and on goods made with forced labour, with paragraph 2.50A of the Handbook of Procedures

Paragraph 2.20A prohibits direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not the goods are otherwise importable without an...

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Last updated: October 2026Verified against: Government sources

Paragraph 2.20A prohibits direct or indirect import or transit of all goods originating in or exported from Pakistan, until further orders. Paragraph 2.20B prohibits import of goods produced or manufactured, wholly or in part, through the use of forced labour, once the Central Government specifies the goods by notification after an enquiry. Paragraph 2.50A of the Handbook sets out the five steps of the DGFT's enquiry.

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 goods are named as notified under paragraph 2.20B in this article. If your supply chain may be affected, a legal consultation can help you assess it.

What the Policy says

Paragraph 2.20A: imports from Pakistan

Direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not they are importable without an authorisation or otherwise permitted, is prohibited with immediate effect, until further orders. The paragraph says the restriction is imposed in the interest of national security and public policy. Any exception to the prohibition requires the prior approval of the Government of India.

Three points are worth noting from the words:

  • It covers goods "originating in or exported from" Pakistan, so goods of third-country origin shipped from Pakistan are covered as well as goods made there.
  • It covers "direct or indirect" import and also "transit".
  • It has no end date: "until further orders".

The paragraph names no section of the Act. For the Act's power to prohibit imports, see our article on sections 3 and 4 of the Foreign Trade (Development and Regulation) Act, 1992; the Policy is made under section 5 of the Act. Customs has its own power over prohibited goods in section 11 of the Customs Act, 1962.

Paragraph 2.20B: goods produced with forced labour

The import of goods produced or manufactured, wholly or in part, through the use of forced labour is prohibited. The Central Government may from time to time specify, by notification, the goods whose import is prohibited under the paragraph, having regard to the findings of an enquiry or other material it considers appropriate. The procedure for conducting the enquiry by the Director General of Foreign Trade into the use of forced labour in the production of such goods is as prescribed in the Handbook of Procedures, 2023.

Two features matter. First, the prohibition operates on goods that are specified by notification. The paragraph prints none, and none is stated here; check the current notifications. Second, "forced labour" is defined in paragraph 11.64 of the Policy as all work or service exacted from any person under the menace of any penalty and for which the person has not offered himself voluntarily, as defined under the ILO Forced Labour Convention, 1930 (Convention 29). That definition is explained in a separate article on the Policy's definitions.

What the Handbook requires

Paragraph 2.50A, headed "Procedure for determination of use of forced labour in the production of imported goods", gives five steps:

StepWhat the DGFT may do
1Undertake an enquiry, on its own motion or on receipt of information or a complaint supported by credible material, to ascertain whether goods imported into India have been produced, wholly or in part, using forced labour
2Seek information, documents or clarifications from the importers, exporters, manufacturers or any other person or authority considered necessary
3Consult the relevant Ministries, Departments or agencies, or other stakeholders, as necessary
4Obtain information or technical inputs from any domestic or international organisation, governmental authority or expert body, wherever considered necessary
5On completion, prepare a report with its findings on the use of forced labour in the production of the goods, and make appropriate recommendations to the Central Government, including for prohibition of import of the goods

Step 5 says that recommendation for prohibition may be made under the Foreign Trade (Development and Regulation) Act, 1992 and the Policy. The Handbook paragraph prints no time limits, no form of complaint and no right of hearing for an importer; the DGFT "may" seek information from importers, exporters and manufacturers. The Handbook itself is notified under section 6 of the Act. For compliance practice in the supply chain, see our guide on child and forced labour compliance for exporters.

A practical example

Granite Bay Apparel, an invented importer, buys fabric from a trader abroad. The trader's goods were shipped from Pakistan after being sourced elsewhere. Under paragraph 2.20A, goods "exported from" Pakistan are within the prohibition even if they did not originate there, and the prohibition covers indirect import and transit, so the importer cannot route around it, and any exception needs prior approval of the Government of India. On a separate shipment, a complaint supported by credible material says an overseas supplier uses forced labour. The DGFT may open an enquiry under paragraph 2.50A, ask Granite Bay and the supplier for documents, and recommend to the Central Government that import of the goods be prohibited. The prohibition under paragraph 2.20B would then apply once the goods are specified by notification.

Need help with an import-prohibition question?

Whether a shipment falls under a prohibition depends on its route, its origin and the current notifications. Our team can help you assess a supply chain through a legal consultation.

Key takeaways

  • Direct or indirect import or transit of goods originating in or exported from Pakistan is prohibited until further orders, and exceptions need prior approval of the Government of India (paragraph 2.20A).
  • Goods made wholly or in part with forced labour are prohibited, in the case of goods the Central Government specifies by notification (paragraph 2.20B).
  • The DGFT may open an enquiry on its own motion or on a credible complaint (Handbook paragraph 2.50A).
  • The enquiry ends with a report and recommendations to the Central Government.
  • Check the current notifications; none is named here.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Paragraphs 2

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What does paragraph 2.20A prohibit?

Direct or indirect import or transit of all goods originating in or exported from Pakistan, with immediate effect, until further orders.

Can an exception be allowed?

Yes, but any exception to the prohibition requires the prior approval of the Government of India.

If a rule seems to have changed, check the date of what you are reading before you act on it.

— TaxClue Compliance Desk

Paragraphs 2: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Direct or indirect import or transit of all goods originating in or exported from Pakistan, with immediate effect, until further orders.

Yes, but any exception to the prohibition requires the prior approval of the Government of India.

The paragraph prohibits such imports, and the Central Government specifies by notification the goods whose import is prohibited, having regard to the findings of an enquiry or other material.

The Director General of Foreign Trade, as prescribed in paragraph 2.50A of the Handbook.

Yes. Paragraph 2.50A allows an enquiry suo motu or upon information or a complaint supported by credible material.

None are named in the paragraph or in this article; check the current notifications on the DGFT website.