Section 9 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.
Section 9 is the licensing section. It lets the Central Government charge fees, lets the Director General or an authorised officer grant, renew or refuse a licence, and sets the form, validity, conditions, suspension, cancellation and appeal. Since 2010 it covers not only a licence but any "licence, certificate, scrip or any instrument bestowing financial or fiscal benefits". This article explains it as per the Act as enacted in 1992 read with the 2010 Amendment Act.
The Director General or an authorised officer may grant, renew or refuse a licence (for goods, services or technology) and a certificate, scrip or similar instrument, and must record reasons in writing for a refusal. A licence is valid for the period stated in it and carries the conditions prescribed. It may be suspended or cancelled only for reasons recorded in writing and after a hearing, and an appeal lies in the way an appeal lies under section 15.
What the 2010 Act changed
In sub-sections (1), (3), (4) and (5) the word "licence" was replaced, wherever it occurs, by "licence, certificate, scrip or any instrument bestowing financial or fiscal benefits". Sub-section (2) was substituted. In 1992 the section dealt only with a "licence to import or export". The 2010 Act was brought into force by notification; the date is not in the sources consulted.
For the plain meaning of "licence" in section 2(g), see section 2 of the Act: a licence to import or export, including a customs clearance permit and any other permission issued under the Act. The wider phrase in section 9 means the section now reaches instruments that give financial or fiscal benefits, and not only permissions to trade. If you are unsure whether your goods fall in a restricted class at all, a restricted items import-export licence check before filing is the sensible first step.
Section 9(1): fees
The Central Government "may levy fees, subject to such exceptions, in respect of such person or class of persons making an application for" a licence, certificate, scrip or such instrument, "or in respect of any" such instrument granted or renewed "in such manner as may be prescribed". The Act sets no amount. The Rules say the fee is as specified in the Policy (rule 5, below).
Section 9(2): grant, renewal and refusal (substituted in 2010)
The Director General or an officer authorised by the Director General may, on an application and after making such inquiry as he may think fit:
- grant or renew, or refuse to grant or renew, a licence to import or export such class or classes of goods or services or technology as may be prescribed; and
- grant or renew, or refuse to grant or renew, a certificate, scrip or any instrument bestowing financial or fiscal benefit,
"after recording in writing his reasons for such refusal". Refusal therefore requires written reasons. The 1992 sub-section covered only licences for classes of goods.
Example: Vikram Engineering applies to import a restricted item. The officer, after inquiry, refuses. The refusal must come with reasons recorded in writing, which become the basis of any appeal.
Section 9(3): form, validity, conditions
A licence (or the other instruments) granted or renewed "shall":
| Clause | Requirement |
|---|---|
| (a) | Be in such form as may be prescribed |
| (b) | Be valid for such period as may be specified therein |
| (c) | Be subject to such terms, conditions and restrictions as may be prescribed or as specified in the licence with reference to those prescribed |
The Act itself therefore fixes no validity period; each instrument states its own. Conditions come from the Rules and from the instrument. Rule 6 lists conditions the Rules attach.
Section 9(4): suspension and cancellation
The Director General, or the officer authorised under sub-section (2), "may, subject to such conditions as may be prescribed, for good and sufficient reasons, to be recorded in writing, suspend or cancel" any licence, certificate, scrip or instrument granted under the Act. The proviso says no such suspension or cancellation "shall be made except after giving the holder of the licence" a "reasonable opportunity of being heard". Reasons in writing and a hearing are both required.
Section 9(5): appeal
An appeal against an order refusing to grant or renew, or suspending or cancelling, a licence or such instrument "shall lie in like manner as an appeal against an order would lie under section 15". The text borrows the manner of appeal under section 15 but does not itself state the time or any deposit; whether the section 15 time-limit and deposit proviso apply should be checked in the text of that section. See section 15.
How the Rules fill in section 9
Section 19(2)(b) to (e) lets the Central Government make rules on fees, classes of goods, form and conditions, and suspension or cancellation. The Foreign Trade (Regulation) Rules, 1993, as amended in 2015, do so. Our rule-wise articles are:
| Rules | Subject | Article |
|---|---|---|
| Rule 4 | Application for a licence or similar instrument | Rules 3 and 4 |
| Rule 5 | Fee, exemptions and refund | Rule 5 |
| Rule 6 | Conditions of licence | Rule 6 |
| Rule 7 | Refusal and recovery of benefits | Rule 7 |
| Rules 8 and 10 | Amendment and cancellation | Rules 8 and 10 |
| Rule 9 | Suspension | Rule 9 |
Background: the Policy on authorisations
The Foreign Trade Policy 2023 uses the word "Authorisation". Para 2.13 says no person can claim an Authorisation as a right, and that DGFT or the Regional Authority has the power to refuse to grant or renew it in accordance with the Act, the Rules and the Policy; para 2.11 deals with the application fee (FTP 2023, in the copy consulted). The specific schemes are outside this article. Policy provisions change, so check the current Policy and Handbook.
Need help with a licence application or refusal?
If your goods need a licence or your application has been refused or suspended, our restricted items import-export licence service can help you with the application and the record of reasons. Later amendments to the Act, the Rules and the Policy should be checked.
Key takeaways
- Section 9 now covers a "licence, certificate, scrip or any instrument bestowing financial or fiscal benefits".
- A refusal must be reasoned in writing.
- Validity is as stated in the instrument; the Act sets no period.
- Suspension or cancellation needs reasons in writing and a reasonable opportunity of being heard.
- Appeal lies in like manner as under section 15; the Rules add fee, conditions, refusal and suspension grounds.
Read next
- Section 10: power of search and seizure
- Rule 7: refusal of licence and recovery of benefits
- Section 15: appeal against adjudication orders
- Advance Authorization under the Foreign Trade Policy
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.