DGFT Clarifies Para 2.12 Applicability Under Foreign Trade Policy 2023.

Directorate General of Foreign Trade (DGFT) has issued an important clarification regarding Para 2.12 of the Foreign Trade Policy (FTP), 2023. This pertains to the treatment of goods that have already been shipped or arrived before the issuance of an import authorization.

What Does Para 2.12 State?

Para 2.12 of FTP 2023 allows importers to clear goods from Customs even if those goods were shipped, imported, or arrived before the issuance of the authorization (such as an Advance Authorisation). However, such goods are typically required to be warehoused first and then cleared for home consumption after the authorisation is issued.

This flexibility does not apply to Restricted items or State Trading Enterprises (STEs) unless specifically permitted by DGFT.

The Concern Raised

DGFT received multiple representations from importers facing issues where Customs authorities were insisting on warehousing of goods — even in cases where the authorisation was issued before the goods were cleared, but after their shipment date (as per the Bill of Lading).

This interpretation not only delayed clearances but also added unnecessary warehousing costs, thereby undermining the intent of facilitation under Para 2.12.

DGFT Clarification: No Mandatory Warehousing Required

After examination of the issue, the DGFT has clearly clarified the following:

• If an import authorisation is issued after the date of shipment (Bill of Lading) but before customs clearance,
• Then warehousing is not mandatory.
• The importer can directly clear the goods for home consumption, using the authorisation at the time of clearance.
• This applies only to non-restricted items and non-STE imports (unless otherwise permitted by DGFT).

Impact of This Clarification

This clarification is a significant ease-of-doing-business measure that:

• Reduces unnecessary warehousing costs,
• Speeds up customs clearances,
• And aligns implementation of FTP 2023 with its true facilitative intent.

Notification Reference: DGFT
Policy Circular No. 02 /2025-26
22 /07/2025