DGFT Restricted Items List in India – Updated Import & Export Regulations

  • The DGFT restricted items list defines goods that require government approval for import or export in India.
  • Restricted goods are regulated under the DGFT Foreign Trade Policy to protect security, health, environment, and trade balance.
  • Importing or exporting DGFT restricted goods without a valid licence can lead to heavy penalties and IEC suspension.

Introduction

A Delhi-based electronics importer once approached us after his shipment was held at Nhava Sheva port for three weeks. The reason was simple but costly: a wireless module imported along with routers fell under DGFT restricted goods, and no prior authorisation had been obtained. Storage charges piled up, buyers backed out, and the entire transaction turned into a loss

This scenario is far more common than businesses admit.

The DGFT restricted items list plays a critical role in India’s import-export ecosystem. It determines which products can move freely and which require government permission. Ignoring these rules doesn’t just delay shipments—it exposes businesses to penalties, confiscation, and long-term compliance risks.

The authority behind these regulations is the Directorate General of Foreign Trade, operating under the Ministry of Commerce & Industry. DGFT frames and enforces India’s Foreign Trade Policy to balance economic growth with national interest.

Understanding DGFT restrictions is no longer optional. It is foundational compliance for every importer and exporter.

What Are Restricted Items Under DGFT?

Under India’s foreign trade framework, restricted items are goods that cannot be freely imported or exported and require prior approval or authorisation from the Directorate General of Foreign Trade (DGFT).

In simple terms, these are products that the government allows to be traded only under controlled conditions, after evaluating factors such as national interest, safety, and regulatory compliance.

Restricted Items as per DGFT Foreign Trade Policy

As per the DGFT Foreign Trade Policy (FTP) and ITC (HS) Classification, restricted items are:

  • Permitted for import or export
  • Subject to a valid DGFT licence or authorisation
  • Governed by specific conditions, such as quantity limits, end-use restrictions, or additional NOCs

They are not banned, but they are regulated.

Why Does DGFT Restrict Certain Items?

DGFT places products under the “Restricted” category to:

  • Protect national security and strategic interests
  • Safeguard public health and safety
  • Prevent environmental damage
  • Regulate sensitive technologies and dual-use goods
  • Control scarce resources and essential commodities

Restrictions also help India meet its international treaty obligations and manage trade imbalances.

Difference Between Free, Restricted, Prohibited & STE Items

Category Description DGFT Approval Required
Free Goods allowed without limitation No
Fee Prescribed By Directorate General of Foreign Trade (DGFT)
Nature of Fee Mandatory government charge
Processing Time (Normal Cases) 1–3 working days
Processing Time (If Documents Are Correct) Often within 24 hours
Validity After Issuance Lifetime
Renewal Requirement Not required (only annual update, if applicable)

Frequently Asked Questions (FAQs) – Export Management System

An Export Management System is a structured framework that helps exporters manage documentation, licensing, compliance, and regulatory obligations under DGFT, Customs, and foreign exchange laws.

EMS is not legally mandatory, but it is essential for exporters to remain compliant, avoid penalties, and manage exports efficiently—especially under increased DGFT scrutiny.

EMS services are required by MSMEs, manufacturers, merchant exporters, export houses, and businesses dealing with regulated or high-value export products.

IEC is a registration number required to export, while EMS is an operational and compliance system that governs how exports are executed after obtaining IEC.

Yes. EMS includes tracking and management of export licenses, Import Export Permits, and authorizations required for restricted or controlled items.

By standardizing documentation, ensuring correct HS codes, and verifying licensing requirements before shipment, EMS minimizes customs queries and regulatory violations.

Yes. A structured EMS maintains audit-ready records and documentation required for claiming and retaining export incentives without rejection or recovery.

Absolutely. EMS helps MSMEs comply with export laws, access incentives, and scale exports without hiring large internal compliance teams.

EMS requires continuous updates to align with DGFT notifications, trade policy changes, and regulatory amendments.

Export compliance in India is governed primarily by the Directorate General of Foreign Trade, along with Customs authorities and foreign exchange regulators.