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 2.28 to 2.30 of the Policy allow, without an authorisation, the re-import of capital goods and other items sent abroad for repair or upgradation, the import of goods used in projects abroad after at least a year of use, and the import of prototypes by an actual user on a self-declaration. The Handbook paragraphs 2.38 and 2.40 to 2.42 add imports of cheque books and ticket forms, replacement goods, and equipment of closed overseas offices.
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. The Customs side of re-importation is in the Customs Act; this article explains only the Policy and the Handbook. For filing the Customs documents of such an import, our ICEGATE registration service can set up the account.
Capital goods, equipment, components, parts and accessories, except items restricted under ITC(HS), may be sent abroad for repair, testing, quality improvement or upgradation and re-imported without an authorisation (paragraph 2.28). Project goods used for at least one year abroad may be imported without an authorisation (paragraph 2.29). Defective or damaged imported goods may be exported and replacement goods brought in without an import authorisation if shipped within 24 months of clearance, or within the warranty period of machines if longer (Handbook paragraph 2.40), with no remittance except insurance and freight.
What the Policy says
Paragraph 2.28: re-import of goods repaired abroad
Capital goods, equipment, components, parts and accessories, "whether imported or indigenous", except those restricted under ITC(HS), may be sent abroad for repairs, testing, quality improvement, upgradation or standardisation of technology and re-imported without an authorisation. The paragraph prints no value limit, time limit or documentary requirement. The Customs Act's rules on re-importation are in our article on sections 19 to 21 of the Customs Act, 1962, and on inward and outward processing in sections 25A and 25B.
Paragraph 2.29: goods used in projects abroad
Project contractors, after completion of projects abroad, may import without an authorisation goods, including capital goods, used in the project, provided they have been used for at least one year. The paragraph is silent on how the use is proved.
Paragraph 2.30: prototypes
Import of new or second-hand prototypes, or second-hand samples, may be allowed on payment of duty without an authorisation to an actual user (industrial) who is engaged in production of, or has an industrial licence or letter of intent for research in, the item for which the prototype is sought, for product development or research, on a self-declaration to that effect, to the satisfaction of the Customs authorities. The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992; these paragraphs name no section of it.
What the Handbook requires
Paragraph 2.38: cheque books and ticket forms
Indian branches of foreign banks, insurance companies and travel agencies may import cheque books, bank draft forms and travellers' cheque forms without an authorisation. Airlines and shipping companies operating in India, including persons authorised by them, may import passenger ticket forms without an authorisation.
Paragraph 2.40: replacement goods
Goods or parts imported and found defective or otherwise unfit for use, or damaged after import, may be exported without an authorisation. Goods in replacement may be supplied without charge by foreign suppliers, or imported against a marine insurance or marine-cum-erection insurance claim settled by an insurance company. They are cleared by Customs without an import authorisation provided that:
- (a) shipment of the replacement goods is made within 24 months from the date of clearance of the previously imported goods through Customs, or within the warranty period in the case of machines or parts, where that period is more than 24 months; and
- (b) no remittance is allowed except for payment of insurance and freight charges, where the replacement by foreign suppliers is subject to payment of insurance or freight by the importer and documentary evidence is produced while making remittance.
Paragraph 2.41: other conditions
- (a) In case of short-shipment, short-landing or loss in transit, import of replacement goods is permitted, on a certificate issued by the Customs authorities, without an import authorisation.
- (b) The same procedure applies where short shipment is certified by a foreign supplier who has agreed to replace the goods without charge.
- (c) Cases not covered above are considered on merits by the DGFT for an authorisation for replacement of goods, for which an application may be made as per paragraph 2.47 of the Handbook (restricted items; ANF 2M and ANF 2N, explained in our article on paragraphs 2.08 and 2.09).
Paragraph 2.42: equipment of overseas offices
On winding up of overseas offices set up with the approval of the Reserve Bank of India, used office equipment and other items may be imported without an authorisation. The paragraph prints no time limit.
The Handbook is notified under paragraph 1.03 of the Policy; see section 6 of the Act.
| Paragraph | Subject | Key condition |
|---|---|---|
| Policy 2.28 | Re-import after repair | Not for items restricted under ITC(HS) |
| Policy 2.29 | Project goods | Used for at least one year |
| Policy 2.30 | Prototypes | Actual user; self-declaration; payment of duty |
| Handbook 2.40 | Replacement goods | Within 24 months, or warranty period if longer; no remittance beyond insurance and freight |
| Handbook 2.41 | Short shipment, loss in transit | Customs certificate; supplier's agreement to replace without charge |
| Handbook 2.42 | Overseas office equipment | Offices set up with Reserve Bank approval, on winding up |
A practical example
Crescent Bay Plastics, an invented manufacturer, imported a moulding machine. Some months after clearance a part fails, and the foreign supplier agrees to send a replacement part without charge. Under Handbook paragraph 2.40, the defective part may be exported without an authorisation, and the replacement is cleared without an import authorisation if it is shipped within 24 months from the date of clearance of the original machine (or within the machine's warranty period, if that is longer than 24 months). The company may not remit any payment to the supplier except insurance and freight where the supplier has made the replacement subject to the importer paying them, and it must keep the documentary evidence. If the part had instead been lost in transit, paragraph 2.41(a) would apply on a Customs certificate. Separately, the same company's machine tool sent abroad for upgradation can return under paragraph 2.28, unless the tool is a restricted item.
Need help with a re-import or replacement?
Re-imports and replacements are cleared on documents: the Customs certificate, the supplier's confirmation and the insurance evidence. Our team can help with an ICEGATE registration and the filing side of such an import.
Key takeaways
- Goods sent abroad for repair, testing, upgradation or standardisation can return without an authorisation, unless restricted under ITC(HS) (paragraph 2.28).
- Project goods must have been used for at least one year (paragraph 2.29).
- Prototypes come to an actual user on payment of duty and a self-declaration (paragraph 2.30).
- Replacement goods: within 24 months or the warranty period if longer, with no remittance beyond insurance and freight (Handbook paragraph 2.40).
- Short shipment or loss in transit: a Customs certificate; other cases are considered on merits by the DGFT (Handbook paragraph 2.41).
Read next
- Paragraphs 2.25 to 2.27: import of samples, gifts and passenger baggage
- Paragraph 2.31: import policy for second-hand goods
- Sections 19 to 21 of the Customs Act, 1962: sets of articles, re-importation and derelict or wrecked goods
- Sections 25A and 25B of the Customs Act, 1962: inward and outward processing of goods
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.