Paragraphs 2.46 to 2.50 of the Foreign Trade Policy, 2023: import for export, replacement goods, repaired goods, warranty spares and re-export of defective imports, with paragraph 2.65 of the Handbook of Procedures

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 2.46 to 2.50 of the Policy let goods be imported and sent out again in five situations: goods imported for export, replacement of defective exported goods, repair of exported goods, export of warranty spares, and re-export of defective imports. Paragraph 2.65 of the Handbook provides an application route to DGFT in ANF 2Q where a ceiling or period is exceeded.

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 and Public Notices should be checked.

Goods imported in accordance with the Policy may be exported in the same or substantially the same form without an authorisation, if neither the import nor the export is restricted in ITC(HS) (paragraph 2.46(a)). Replacement goods and repaired goods come in under Customs notifications; for repaired goods the exporter returns the benefits availed (paragraph 2.48). Warranty spares may be exported within the contracted warranty period, subject to approval of the Reserve Bank (paragraph 2.49).

Paragraph 2.46: import for export

Paragraph 2.46 is numbered irregularly in the copy consulted ("1 (a)" to (d), then "1(a)" to (d) again, with references to "I (e)" and "II (a)"). The sense is set out below by the sub-paragraph letters as printed. Because the goods in (b) are cleared under a Customs Bond, the filing side starts with an ICEGATE registration for the importer.

Paragraph 2.46(a): same or substantially the same form

Goods imported in accordance with the Policy may be exported in the same or substantially the same form without an authorisation, provided the item to be imported or exported is not restricted for import or export in the ITC(HS) Schedules.

Paragraph 2.46(b) and (c): goods imported for export

Goods, including capital goods (both new and second-hand), may be imported for export on three conditions:

• (i) the importer clears the goods under a Customs Bond;
• (ii) the goods are exportable without an authorisation, meaning they are not "Restricted" or "Prohibited" or subject to exclusive trading through State Trading Enterprises or any condition under Schedule 2 of the export policy of ITC(HS); and
• (iii) the export is against convertible foreign currency.

Paragraph 2.46(c) says the goods in (b) include goods restricted for import, other than prohibited items.

Paragraph 2.46(d): re-export from a bonded warehouse

Notwithstanding the above, goods that may be imported without an authorisation may be re-exported, except items on the Prohibited list or the SCOMET list of exports, in the same or substantially the same form even though they are under the restricted list for export, on four conditions:

1. the goods are not of Indian origin;
2. the goods imported are kept in a bonded warehouse under the supervision of Customs;
3. the goods to be exported have never been cleared for home consumption; and
4. export is subject to section 69 of the Customs Act, 1962, covered in our article on sections 68 and 69 of the Customs Act, 1962 on clearance of warehoused goods for home consumption and export.

The second part: payment in convertible foreign currency and exports to Iran

The second set of sub-paragraphs states that goods imported against payment in convertible foreign currency are permitted for export only against payment in convertible foreign currency, unless otherwise notified by DGFT. It then says goods imported under paragraph 2.52(d)(i) are permitted for export only against payments as per paragraph 2.52(d)(ii), unless DGFT notifies otherwise.

Later amendment. Paragraphs 2.52 and 2.53 were substituted on 20 August 2026; the sub-paragraphs (d)(i) and (d)(ii) cited above no longer appear in the paragraph as notified. See our article on paragraphs 2.52 and 2.53 on the denomination of export contracts and rupee realisation. The chapter text consulted on 2 October 2026 still prints the citations above, and this article quotes them as printed.

Export of such goods to notified countries (presently only Iran, as printed) is permitted against payment in Indian Rupees, subject to minimum 15% value addition. Re-export of food, medicine and medical equipment, namely the items in the ITC(HS) chapters and headings that the paragraph lists, is not subject to the minimum value addition requirement for export to Iran, but remains subject to all other conditions of the Policy and ITC(HS). Bird's eggs and rice are expressly outside this dispensation. Exports under the dispensation are not eligible for any export incentives. This article lists no ITC(HS) code; check the item's entry.

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Paragraph 2.47: replacement goods

Goods or parts thereof that were exported and found defective, damaged or otherwise unfit for use may be imported for replacement without charge by the exporter, in accordance with the relevant Customs notification. Customs allows such goods for export, provided the replacement goods are not restricted or SCOMET items for export in ITC(HS). If the export item is restricted or in SCOMET, the exporter needs an authorisation to export the replacement goods.

Paragraph 2.48: repaired goods

Goods or parts thereof, except those restricted under ITC(HS), that were exported and found defective, damaged or unfit may be imported for repair and re-export. They are cleared without an authorisation and in accordance with the relevant customs notification. To that extent the exporter must return the benefits or incentive availed on the returned goods. If the item is restricted for import, an import licence is needed. Re-export of defective parts or spares by companies, firms and original equipment manufacturers is not mandatory if they were imported exclusively for root cause analysis, testing and evaluation.

Paragraph 2.49: export of spares

Warranty spares, whether indigenous or imported, of plant, equipment, machinery, automobiles or any other goods, except those restricted under ITC(HS), may be exported along with the main equipment or later but within the contracted warranty period of the goods, subject to approval of the Reserve Bank.

Paragraph 2.50: re-export of defective imports

Imported goods found defective after Customs clearance, or not found to be as per specifications or requirements, may be re-exported as per the Customs Act, 1962. The paragraph adds nothing on timing or documents.

Paragraph 2.65 of the Handbook

For export of gifts, indigenous or imported warranty spares and replacement goods in excess of the ceiling or period prescribed for exports of gifts, spares and replacement goods in the Policy, an application may be made to DGFT in ANF 2Q. The form is named only; nothing inside it is described here.

These paragraphs are policy made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and name no other section; see our article on section 5 of the FTDR Act. The Handbook paragraph rests on the Director General's power in section 6.

A worked example

Orion Pumps Private Limited, an invented exporter, exported a pump part that failed in service. Under paragraph 2.48 the part may be imported for repair and re-export without an authorisation, and Orion returns the benefits it availed on it. A new unit sent without charge as a replacement falls under paragraph 2.47. Spares sent with a machine go under paragraph 2.49, within the contracted warranty period and subject to approval of the Reserve Bank.

Need help with a bond or a Customs filing?

Import for export starts with a Customs Bond and the right filing on the Customs portal. Our team can get your account ready through our ICEGATE registration service.

Key takeaways

• Goods imported under the Policy may be exported in the same or substantially the same form, if neither side is restricted (paragraph 2.46(a)).
• Import for export needs a Customs Bond, exportable goods and payment in convertible foreign currency (paragraph 2.46(b)).
• Repaired goods return the benefits availed (paragraph 2.48).
• Warranty spares need Reserve Bank approval and must go within the warranty period (paragraph 2.49).
• The citations of paragraph 2.52(d) in paragraph 2.46 predate the substitution of paragraph 2.52 on 20 August 2026.

Read next

• Paragraphs 2.43 to 2.45 of the Foreign Trade Policy, 2023: export of samples, gifts and passenger baggage
• Paragraphs 2.52 and 2.53 of the Foreign Trade Policy, 2023: denomination of export contracts and rupee realisation
• Customs bonded warehouse types and procedure
• Section 149 of the Customs Act, 1962: amendment of bill of entry and shipping bill

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.