Paragraph 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 2.31 is the Policy's table on import of second-hand goods. It divides them into second-hand capital goods (I(a) to I(e)), other second-hand goods (II) and goods imported for repair, refurbishing, re-conditioning or re-engineering (III), and states for each whether the import needs an authorisation and on what conditions. Handbook paragraph 2.39 deals with second-hand aircraft spares and paragraph 2.55 with seconds, defectives and certain other goods.
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 table is a policy table of the Policy itself and not an ITC(HS) entry; the position of any particular item should still be checked in ITC(HS) and the current Notifications. If you need an authorisation for a restricted second-hand import, our restricted items import and export licence service can help.
Under paragraph 2.02(d), Schedule 1 of ITC(HS) is for new goods, and second-hand goods follow paragraph 2.31. The Policy uses a different one-word label for items that need no authorisation; in the table, "no authorisation needed" applies to refurbished spares of capital goods (with a Chartered Engineer certificate of at least 80% residual life), to all other second-hand capital goods, and to goods imported for repair or refurbishing. Desktop computers, air conditioners, diesel generating sets, notified electronics and IT goods, and other second-hand goods are restricted: importable against an authorisation.
What the Policy says
The table has four columns: serial number, category, import policy and conditions, and it runs over two pages. The row for each category follows.
| Row | Category | Import policy | Conditions |
|---|---|---|---|
| I(a) | Second-hand capital goods: (i) desktop computers; (ii) refurbished or re-conditioned spares of re-furbished parts of personal computers and laptops; (iii) air conditioners; (iv) diesel generating sets | Restricted | Importable against an authorisation |
| I(b) | All electronics and IT goods notified under the Electronics and IT Goods (Requirements of Compulsory Registration) Order, 2021, as amended | Restricted | (i) Importable against a restricted import authorisation, subject to conditions under that Order; (ii) import of unregistered or non-compliant notified products under that Order is stated to be prohibited (the printed cell is cut off at this point) |
| I(c) | Refurbished or re-conditioned spares of capital goods | No authorisation needed | Subject to production of a Chartered Engineer certificate that the spares have at least 80% residual life of the original spare |
| I(d) | All other second-hand capital goods (other than I(a), (b) and (c)) | No authorisation needed | None stated |
| I(e) | Used IT assets (laptops, desktops, monitors, printers): import from a Special Economic Zone (SEZ) to the Domestic Tariff Area (DTA) | Restricted | However, the policy is "no authorisation needed" subject to the four conditions below |
| II | Second-hand goods other than capital goods | Restricted | Importable against an authorisation |
| III | Second-hand goods imported for repair, refurbishing, re-conditioning or re-engineering | No authorisation needed | Waste generated during the repair or refurbishing is treated as per domestic laws, rules, orders, regulations, technical specifications and environmental, safety and health norms, and the imported item is re-exported as per the Customs Notification |
Row I(e): used IT assets from an SEZ
The four conditions in the table are:
- Used IT assets may be moved from the SEZ to the DTA without a licence for restricted imports for further use in DTA operations only, given that there is a minimum usage of 2 years in the SEZ and that the goods are not older than 5 years from the date of manufacturing.
- Where a unit is closing down its SEZ operations and relocating to the DTA, import of used IT assets from the SEZ into the DTA is allowed without a licence for restricted imports, given that the goods are not older than 5 years from the date of manufacturing. IT assets that entered the SEZ in second-hand, used or old condition and have been used in the SEZ for less than 2 years are not covered.
- The relaxation under conditions 1 and 2 applies provided no exemption from any regulatory requirements (CRO, WPC, RoHS) was availed at the time of import of the used IT assets into the SEZ.
- Import of any used IT assets that do not meet these criteria is subject to a licence for restricted import.
What the table does not say
The table does not name a fee, a time limit or a port. It does not explain the Order of 2021, which is mentioned by name and left at that. It also does not say how the residual life is to be measured, only that the certificate is of a Chartered Engineer. For the Act's power behind restricted 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. Row I(c) also touches the general rule of paragraph 2.02(d), explained in our article on paragraphs 2.00 to 2.02. For ITC(HS) classification, see ITC(HS) code classification for exports.
What the Handbook requires
Paragraph 2.39: reconditioned or second-hand aircraft spares
An import authorisation for reconditioned or second-hand aircraft spares is not required, subject to the no-objection certificate or recommendation of the Director General of Civil Aviation (DGCA), Government of India.
Paragraph 2.55: seconds and defectives
The import policy for seconds and defectives, rags, PET bottles and waste, and ships is given in ITC(HS). The Handbook paragraph states no further rule, and this article does not state the policy for any of these items. The Handbook is notified under paragraph 1.03 of the Policy; see section 6 of the Act.
A practical example
Palm Court Foods, an invented company, wants to import three things. First, a used diesel generating set: row I(a)(iv) shows it as restricted, importable against an authorisation, so it must apply for one. Second, refurbished spares for a machine it already runs: row I(c) needs no authorisation, but the spares must come with a Chartered Engineer certificate of at least 80% residual life of the original spare. Third, a lot of used laptops that a related unit in a Special Economic Zone wishes to move to the domestic area: row I(e) permits it without a licence for restricted imports if the laptops have been used for a minimum of 2 years in the zone, are not older than 5 years from manufacture, and no exemption from the regulatory requirements was availed when they entered the zone. If these conditions are not met, a licence for restricted import is needed.
Need help with a second-hand import?
The right row of the table decides whether an authorisation is needed, and the Chartered Engineer certificate and the SEZ conditions are documentary. Our team can help you with a restricted items import and export licence where an authorisation is required.
Key takeaways
- Second-hand goods follow the table in paragraph 2.31, not Schedule 1 of ITC(HS), unless clearly specified (paragraph 2.02(d)).
- Desktop computers, air conditioners, diesel generating sets, notified electronics and IT goods and other second-hand goods are restricted (rows I(a), I(b), II).
- Refurbished spares of capital goods need a Chartered Engineer certificate of at least 80% residual life; other second-hand capital goods need no authorisation (rows I(c), I(d)).
- Used IT assets from an SEZ to the DTA: no licence if usage in the SEZ is a minimum of 2 years, the goods are not older than 5 years, and no regulatory exemption was availed (row I(e)).
- Aircraft spares: no authorisation, subject to DGCA no-objection or recommendation (Handbook paragraph 2.39).
Read next
- Paragraphs 2.28 to 2.30: re-import after repair, project goods, prototypes and replacement goods
- Paragraphs 2.32 and 2.33: import of metallic waste and scrap
- Paragraphs 2.00 to 2.02: the policy for imports and exports and ITC(HS)
- BIS import requirements: products requiring certification
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.