DGFT Eases Import Procedures for Goods Shipped Before Authorisation

The Directorate General of Foreign Trade (DGFT), through Policy Circular No. 02/2025-26 dated 22nd July 2025, has issued a significant clarification that will ease procedural hurdles and reduce costs for importers operating under the Foreign Trade Policy (FTP) 2023.

Background: Understanding Para 2.12 of FTP 2023

Para 2.12 of FTP 2023 provides a facilitative provision allowing goods already imported/shipped/arrived in advance, but not yet cleared from Customs, to be cleared against an Authorisation (e.g., Advance Authorisation) issued subsequently. However, this was subject to the condition that such goods be first warehoused via a Bill of Entry for Warehousing before being cleared for home consumption.

Importantly, this facility does not apply to ‘Restricted’ items or items traded through State Trading Enterprises (STEs) unless specially permitted by DGFT.

The Issue: Rising Interpretational Hurdles

In recent months, importers have faced challenges at Customs where officers insisted that mandatory warehousing was required even in cases where:

The goods were shipped prior to the issuance of authorisation (based on Bill of Lading date); but
The authorisation was already issued before Customs clearance.

This led to avoidable warehousing costs, delays, and procedural friction—contrary to the facilitative spirit of FTP 2023.

The Clarification by DGFT

The Policy Circular now clearly states:

❝Goods already imported / shipped / arrived in advance, but not cleared from Customs may be cleared for home consumption against an Authorisation issued after shipment but before clearance, without any mandatory warehousing requirement.❞

This means:

If the Authorisation is available before Customs clearance, warehousing is not mandatory, even if the goods were shipped earlier.
This clarification restores the original intent of Para 2.12—to facilitate clearance, not hinder it.

The restriction on ‘Restricted’ items and STE-traded items still applies, unless explicitly permitted by DGFT.

Legal and Trade Significance

This circular:

Aligns DGFT and Customs practice with trade facilitation principles.
Prevents arbitrary warehousing mandates that increase cost.
Provides certainty and procedural clarity to importers and customs brokers.

It further confirms that date of customs clearance, not just shipment date, is key to applying Para 2.12 benefits.

Conclusion

Importers can now confidently clear goods that were shipped before Authorisation issuance, as long as the licence is available prior to Customs clearance, without incurring unnecessary warehousing. This timely clarification, issued with the approval of the Competent Authority, reinforces the government’s commitment to smoother trade facilitation under FTP 2023.

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Source: DGFT

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