Rule 5 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.
Rule 5 says that every application for a licence, certificate, scrip or other instrument to import must be accompanied by the fee, lists four kinds of applicant who pay no fee, and allows refund of a fee in only three cases. Until 2015 the fee and the mode of payment were in a Schedule to the Rules. The 2015 Amendment Rules replaced "Schedule" with "Policy" in sub-rules (1) and (2) and deleted the Schedule, so the fee is now whatever the Policy specifies. This article explains rule 5 as per the Rules as notified in 1993 read with the 2015 Amendment Rules. It states no amount, because the Schedule that carried the amounts was deleted.
Rule 5(1) and (2): an application for a licence, certificate, scrip or any instrument bestowing financial or fiscal benefits to import must come with the fee specified in the Policy, paid in the mode specified in the Policy. Rule 5(3): no fee for the Government, a local authority for official use, an educational, charitable or missionary institution for its own use, or a person importing for personal use (not a vehicle). Rule 5(4): a fee is not refunded except in three listed cases.
What rule 5 covers
Rule 5 sits between the rule on how to apply (rule 4) and the rule on conditions of a licence (rule 6). It deals only with the money paid with an application. It does not say what a licence is, who grants it or when. If you need an authorisation for a restricted item, our restricted items import-export licence service can help. For the rules, see our articles on rules 3 and 4 and on section 9. Section 9(1) of the Act is the source: it allows the Central Government to levy fees "in respect of such person or class of persons making an application for a licence or in respect of any licence granted or renewed in such manner as may be prescribed", subject to exceptions. Section 19(2)(b) lets rules provide for those exceptions; see section 19.
Rule 5(1) and (2): the fee and how it is paid
Rule 5(1), as amended in 2015, says that every application for a licence, certificate, scrip or any instrument bestowing financial or fiscal benefits to import "shall be accompanied by the fee specified in the Policy". Rule 5(2) says "The mode of deposit of fee shall be as specified in the Policy."
Four points:
- Imports only. Sub-rule (1) speaks of an application "to import". The rule does not say that an application to export carries a fee under rule 5. Whether any fee is charged in other cases is for the Policy.
- The Policy now sets the fee. In 1993 sub-rules (1) and (2) read "specified in the Schedule". The Schedule was a scale of fee appended to the Rules. The 2015 Amendment Rules replaced "Schedule" with "Policy" and deleted the Schedule altogether. No amount from the old Schedule is given in this article; it is no longer part of the Rules.
- "Policy" means the foreign trade policy. Rule 2(e) defines it as the policy announced under section 5. See our articles on rules 1 and 2 and on section 5.
- The mode of payment is also in the Policy. The rule gives no portal, bank or form.
What the Policy says (background)
The Foreign Trade Policy 2023, para 2.11 (in the copy consulted), says that an application for an IEC, authorisation, licence, scrip or registration must be accompanied by the application fee indicated in Appendix 2K of the Appendices and Aayat Niryat Forms, and that fees must be paid online through the channels notified under that Appendix unless provided otherwise. Para 2.11(b) describes the application fee as the fee for processing the application. Appendix 2K is not in the sources consulted, so no amount is given here. The Policy can change and the current Appendix should be checked.
The fee and mode must therefore be checked in the current Policy for each application.
Rule 5(3): who pays no fee
"No fee shall be payable in respect of any application made by:
(a) the Central Government, a State Government or any department or any office of the Government;
(b) any local authority for the bona-fide import of goods or services or technology required by it for official use;
(c) any institution set up for educational, charitable or missionary purposes, for the import of goods or services or technology required for its use;
(d) an applicant for the import of any goods or services or technology (other than a vehicle) if the import ... is for his personal use which is not connected with trade or manufacture."
(The 2015 Rules replaced "goods" with "goods or services or technology" in clauses (b), (c) and (d). In clause (d) the 2015 notification replaces the word at each place it occurs; the words "(other than a vehicle)" stay.)
| Clause | Who | Condition |
|---|---|---|
| (a) | Central Government, State Government, or a department or office of the Government | None stated |
| (b) | A local authority | Import must be bona fide and for official use |
| (c) | An institution set up for educational, charitable or missionary purposes | Import must be for its own use |
| (d) | An individual applicant | Import must be for personal use, not connected with trade or manufacture; a vehicle is excluded |
Rule 2(b) says that "charitable purpose" includes relief of the poor, education, medical relief and the advancement of any other object of general public utility. Clause (c) names "educational, charitable or missionary" purposes; the Rule's definition covers "charitable purpose".
Clause (d) leaves out vehicles. A person importing a vehicle for personal use does not fall in clause (d), so the exemption does not reach the application.
Example: Greenfield Public School (an invented institution) applies to import laboratory equipment for its own use. Clause (c) applies, and no fee is payable. If the school imported equipment to sell, the exemption would not apply on the words printed.
Example: Mr. Kapoor (an invented person) applies for an authorisation to import a camera for his own use. Clause (d) applies if the import is not connected with trade or manufacture.
Rule 5(4): when a fee is refunded
"The fee once received will not be refunded except in the following circumstances, namely:
(i) where the fee has been deposited in excess of the specified scale of fee; or
(ii) where the fee has been deposited but no application has been made; or
(iii) where the fee has been deposited in error but the applicant is exempt from payment of fee."
The general rule is no refund. The three exceptions are:
- Excess. More was paid than the specified fee.
- No application. The fee was deposited but no application followed.
- Exempt applicant. The fee was deposited in error although the applicant was exempt under sub-rule (3).
Sub-rule (4) was not amended in 2015. Clause (i) still says "specified scale of fee", though the Schedule that contained the scale has been deleted. Read with sub-rule (1), the scale is now what the Policy specifies. The rule does not say how to claim a refund, to whom, or in what time, and the sources consulted do not say either. FTP 2023, para 2.11(b) (in the copy consulted) says the fee once received will not be refunded except in the circumstances and manner laid down in Appendix 2K; the Appendix should be checked.
A failed or rejected application is not one of the three cases. Refusal of a licence under rule 7 does not by itself bring the fee back on the words of rule 5(4).
Need help with an application fee or a refund?
If you are unsure whether your import application attracts a fee, or you paid a fee in error, our restricted items import-export licence service can help you check the Policy and prepare the request. Later amendments to the Act, the Rules and the Policy should be checked.
Key takeaways
- Rule 5 applies to applications to import a licence, certificate, scrip or any instrument bestowing financial or fiscal benefits.
- Since 2015 the fee and the mode of deposit are "as specified in the Policy"; the Schedule was deleted and no amount is stated in the Rules.
- No fee is payable by the Government, a local authority for official use, an educational, charitable or missionary institution for its own use, or an individual importing for personal use (a vehicle excepted).
- A fee is not refunded except if paid in excess, paid with no application, or paid in error by an exempt applicant.
- Rule 5(4) was not amended and still says "specified scale of fee".
Read next
- Rules 3 and 4: special licence and application for licence
- Rule 6: conditions of licence
- Section 9: issue, suspension and cancellation of licence
- DGFT schemes: a complete guide for exporters
Disclaimer: Based on the Foreign Trade (Development and Regulation) Act, 1992 as enacted read with the Amendment Act of 2010, and on the Foreign Trade (Regulation) Rules, 1993 as notified read with the Amendment Rules of 2015, as consulted on 2 October 2026. Later amendments, the current Foreign Trade Policy and the Handbook of Procedures should be checked. This article is general information, not legal advice; check the official text before acting.