India is a land of rich culture and diversity, and this is reflected in the wide range of products that it exports. From high-tech engineering goods to traditional handicrafts, there is something for everyone in India's export basket.
Choosing the right product is like choosing a life partner.
For the export purpose, goods have been categorised into the following five parts:
Free Goods
Goods that are freely exportable and do not require any license are known as free goods. Items which do not fall under Schedule 2 (ITC (HS), 2012/2018) – Export Policy are freely exportable goods. However, some items under this schedule are under Free category but export can be done only by fulfilling the required conditions.
Canalized Goods
Goods that are permitted to be exported through State Trading Enterprises (STE) are canalized goods. For example, Onion can be exported through NAFED, Crude Oil can be exported through Indian Oil Corporation. Export through STE(s) is permitted without an Export Licence.
Restricted Goods
The restricted items can be permitted for export under licence. The procedures/conditionalities, wherever specified against the restricted items, may be required to be complied with, in addition to the general requirement of licence in all cases of restricted items.
Items mentioned in Schedule-2 of Export Policy and SCOMET (Special Chemicals, Organism, Materials, Equipment and Technologies) Items fall under this category.
Prohibited Goods
The prohibited items are not permitted to be exported. An export licence will not be given in the normal course for goods in the prohibited category. Even, no export of rough diamond shall be permitted unless accompanied by Kimberley Process (KP) Certificate as specified by Gem & Jewellery EPC (GJEPC).
Items mentioned in Schedule-2 of Export Policy, Appendix 2 (Flora Species), Wild Life Entries, etc fall under this category.
Restrictions on Countries of Export
(i) Export of Arms and related material to Iraq shall be prohibited.
(ii) Direct or indirect export of all items, materials, equipments, goods and technology which could contribute to Iran’s enrichment-related, reprocessing or heavy water-related activities, or to development of nuclear weapon delivery systems including those listed in INFCIRC/254/Rev.9/Part 1 and INFCIRC/254/Rev.7/Part 2 (IAEA Documents) and items listed in S/2010/263 (UN Security Council Document) or any items related to nuclear and missile development programmes is prohibited. All the UN Security Council Resolutions/Documents and IAEA Documents referred to above are available on the UN Security Council website (www.un.org/Docs/sc) and IAEA website (www.iaea.org).
(iii) Direct or indirect export of following items, whether or not originating in Democratic People’s Republic of Korea (DPRK), to DPRK is prohibited: All items, materials equipment, goods and technology including as set out in lists in documents S/2006/814, S/2006/815 (including S/2009/205), S/2009/364 and S/2006/853 (United Nations Security Council Documents) INFCIRC/254/Rev.9/Part 1a and INFCIRC/254/Rev.7/Part 2a (IAEA documents) which could contribute to DPRK’s nuclear-related, ballistic missile-related or other weapons of mass destruction-related programmes.
(iv) Export of rough diamonds to Cote d’Ivoire is prohibited in compliance with Paragraph 6 of UN Security Council Resolution(UNSCR) 1643 (2005).
(v) Export of rough diamond [ITC (HS) Code 710210, 710221 or 710231) to Venezuela shall be ITC (HS), 2012 Schedule 2 – Export Policy 893 Prohibited in view of voluntary separation of Venezuela from the Kimberley Process Certification Scheme (KPCS). No Kimberley Process Certificate shall be accepted/endorsed/issued for export of rough diamond to Venezuela.
(vi) In addition to above, export to other countries will be subject to conditions as specified in Para 2.1 of the Foreign Trade Policy 2009-14 and Para 2.2 of the Handbook of Procedures 2009-2014 (Vol. I) and other conditions which may be listed in the title ITC (HS) Classification of Export and Import items.
Conclusion: Before selecting any product for export, please read the provisions of the Foreign Trade Policy carefully.
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Disclaimer: This blog is for informational purposes only and should not be construed as legal or financial advice. The information contained in this blog is not intended to be a substitute for professional advice. You should always consult with a qualified professional before making any financial decisions. The author of this blog makes no representations as to the accuracy or completeness of the information contained herein. The information in this blog is subject to change without notice. The author of this blog is not liable for any losses or damages that may arise from the use of this blog.
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