Restricted Licence (Import & Export)
From time-to-time Govt. imposes restrictions on import / export of items. These restrictions help the Govt. to regulate the flow of goods coming in and going out of the country and gain control of the supply and demand problems for those goods. The restrictions maybe in the following forms:
- Value Restriction: A specific value is fixed for the item per unit. And Trade is restricted to adhere to the restriction clauses.
- Quantity Restriction: Import or export of an Item is limited to a certain quantity in a time period. Exports or imports should not cross the limit specified in that time period.
- State Trading Enterprises (STE): Few products are authorized to be imported or exported only through State Trading Enterprises. No other entity is allowed to import or export such products. Example of one such product is Crude oil and petroleum products.
All such restricted items along with the respective ITC HS codes are notified from time-to-time by DGFT. EXIM Facilitation Committees (EFC) have been assigned the responsibility of overseeing the approvals of the Restricted Licenses.
There are many rules and regulations associated with the Restricted Licenses and the businesses have to adhere to all such regulations. Violations will lead to penalties.