PROHIBITED AND RESTRICTED GOODS

INTRODUCTION

Import and export are important contributors to any country’s Gross Domestic Product (GDP), which is a measure of the economy’s health and advancement. It is impossible for any country to establish a closed economy because no country is resource self-sufficient. Whether it’s due to unequal distribution of natural resources or territorial division of labor and specialisation, people’s desire to improve their quality of living eventually leads to overseas commerce. As a result, imports assist in alleviating shortages of vital consumer products, capital goods, and numerous inputs that are not readily available in the country. Sugar, ores and minerals, petroleum and crude products, chemical and allied products, and so on are examples of such things.

If any items are restricted from entering the country, the government takes down import obstacles that must be overcome by the importer. To import such restricted products, certain procedures must be followed. Most prohibited items can be imported if the government of the importing country lifts the limitations by following the relevant processes and formalities. Prohibited items, on the other hand, are not permitted to be imported into such a country. While prohibited and restricted items may sound the same, there is an actual difference – prohibited items must never be sent in the post, while restricted items may be sent in the post, but restrictions will apply.

REASONS FOR IMPOSING RESTRICTIONS

One of the main goals of imposing import restrictions or prohibitions on commodities is to ensure that the importing country’s economic situation is not weakened. Import restrictions do not imply that imports are prohibited. If a product’s import has a negative impact on the health of humans, animals, plants, or other species, the importing country’s government may limit its import. Import restrictions are determined by the government of the importing country’s foreign trade policy, which may be altered from time to time if necessary. The government of the importing country publishes a list of such prohibited products for import, which is updated on a regular basis. The importer may obtain information from authorities about their importing products, such as if they are subject to the importing nation’s limitation list.

Restricted in the context of shipping can signify one of two things:

1.   It’s possible that an item is permitted, but only in a limited number.
2.   A specific object can be mailed, but only if it fits certain requirements.

Sending batteries, for example, is restricted by kind (car batteries are prohibited), and the quantity must fall below a particular threshold for quality check. This means that batteries that are broken or malfunctioning are not allowed. Furthermore, lithium ion batteries may only be sent with an electronic device, but not linked to it.

Restriction can also mean that an item can only be sent if the competent authority has granted a license or authorization, however this usually applies to overseas shipping because rules and procedures differ from nation to country, it’s critical to check limits for the country you’re shipping to ahead of time, as well as apply for any necessary permissions. If you send a restricted material without a license, customs will confiscate your delivery. Due to import and safety rules, restrictions might vary greatly from country to country. Other explanations could include:

•       Economics: Countries create trade barriers to protect their economy from the risks of international trading.
•         Religious Values: Some countries with a strong faith have very strict rules on which texts are allowed to enter the country.
•         The Environment: To protect the native ecosystem from alien pests or disease, hence why many countries carry restrictions on things like seeds and dried fruit.

IMPORT/EXPORT RESTRICTIONS AND PROHIBITIONS IN INDIA

Deliberate evasion of duty or breach of a prohibition or limitation imposed on the import or export of specific products is punishable under the Customs Act, 1962, or any of the associated laws executed by the Customs under the said Act. Thus, importers and exporters, as well as others involved in international trade, must be familiar with the provisions of the Customs Act of 1962, the Foreign Trade Policy, and other relevant allied Acts, and ensure that, before any imports or exports are carried out, they are aware of any prohibitions, restrictions, or requirements that must be met.

The term “Prohibited Goods” is defined as “any goods the import or export of which is subject to any prohibition under the Customs Act or any other law for the time being in force” under Section 2(33) of the Customs Act, 1962. As a result, the Customs Act of 1962 can be used to enforce a restriction under any other legislation. For example, the Central Government can make provisions for prohibiting, restricting, or otherwise regulating the import or export of goods under Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, which is reflected in the DGFT, Department of Commerce’s Foreign Trade Policy.

Some of the goods are absolutely prohibited for import and export whereas some goods can be imported or exported against a licence and/or subject to certain restrictions. An example is that certain products must conform to mandatory Indian Quality Standards (IQS), and exporters of certain products to India must register with the Bureau of Indian Standards for this reason (BIS). Importation of such products will be forbidden if the following criteria are met. If any of the standards are not met, the import of packaged products will be considered forbidden, and the commodities would be confiscated.

The Central Government has the authority to issue notifications under Section 11 of the Customs Act, 1962, declaring the export or import of any items as forbidden. The prohibition can be unconditional or conditional. A notification under Section 11 can be issued for a variety of reasons, including maintaining India’s security, preventing a shortage of goods in the country, conservation of foreign exchange, safeguarding balance of payments etc. The Customs Act of 1962, Sections 111(d) and 113(d), specify that any items that are imported or attempted to be imported, and exported or attempted to be exported, in violation of any ban imposed by or under the said Act or any other legislation in force, are subject to forfeiture. Improper importation is punishable under Section 112 of the Customs Act of 1962, and attempting to export goods improperly is punishable under Section 114 of the same Act. The adjudicating officer may impose a penalty of up to five times the value of the commodities in the case of restricted goods. It is, therefore, absolutely necessary for the trade to know what are the prohibitions or restrictions in force before they contemplate importing or exporting any goods.

Apart from customs act there are some other acts and rules that come into play for imposing restrictions or prohibitions among which some are:

1.       The Prevention of Food Adulteration Act, 1954 and Food Safety and Standards Authority Act, 2006

Any product that does not meet the legislative requirements is not authorized to be imported into the country, according to the Prevention of Food Adulteration Act of 1954 (PFA). Similarly, the government has produced a number of laws, regulations, orders, notifications, and other documents outlining the procedures for dealing with imports of the aforementioned products. In addition, the Food Safety and Standards Authority Act of 2006 (FSSA) aims to replace a number of existing laws, notably the PFA Act, which governs the import of edible goods. The FSSAI was formed to set standards and regulate/monitor food manufacturing, import, processing, distribution, and sale.

2.       Labelling of the goods imported into India:

A government notification of year 2000 mandates the labeling of commodities imported into India that fall under the scope of the 1977 Standards of Weights and Measures (Packaged Commodities) Rules. Before an import consignment of such items is cleared by Customs for home consumption, compliance with labeling standards must be confirmed, according to this Notification.

3.       The Livestock Importation Act, 1898:

The Livestock Importation Act of 1898 governs the import of livestock and livestock products. The purpose of this Act, as well as the notifications/orders issued under it, is to restrict the import of livestock products in such a way that they do not have a negative impact on the country’s human and animal health populations.

4.       Standards of Weights and Measures (Packaged Commodities) Rules, 1977:

When imported into India, all packaged products that are subject to the terms of the Standards of Weights and Measures (Packaged Commodities Rules, 1977) when made, packed, or marketed in the domestic market must comply with all provisions of the said rules. Before the import consignment of such commodities is cleared by Customs for domestic consumption, compliance must be ensured.

5.       Drugs and Cosmetics Act, 1940 and Drugs and Cosmetics Rules, 1945:

According to Rule 133 of the Drugs and Cosmetics Rules, 1945, cosmetics may only be imported into India through the points of entry listed in Rule 43A of the Rules. Furthermore, certain categories of drugs are exempt from the limits imposed by Chapter III of the Drugs and Cosmetics Act, 1940, under Schedule “D” of the aforementioned Rules, read in accordance with Rule 43.

6.       Import of Hazardous Substances:

Hazardous waste imports into India are governed by the Hazardous Wastes (Management and Handling) Amendment Rules, 1989. Furthermore, despite anything in the ITC (HS) Classifications of Export and Import Items, the import of hazardous waste or substances containing or contaminated with hazardous wastes as defined in Schedule 8 of the act is forbidden.

 

LIST OF SOME MAJOR PROHIBITED/RESTRICTED GOODS IN INDIA

 

  PROHIBITED GOODS                                 RESTRICTED GOODS   

Narcotic drugs and psychotropic substances	Firearms and ammunition
Pornographic and obscene material	Live birds and animals including pets
Counterfeit and pirated goods and goods infringing any of the legally enforceable intellectual property rights	Plants and their produce e g fruits, seeds
Antiquities	Endangered species of plants and animals, whether alive or dead
Aero models (such as remote-controlled toy helicopters) that operate on high radio bandwidths	Any goods for commercial purposes for profit, gain, or commercial usage
Indian coins which are covered by the Antique and Art Treasure Act, 1972	Radio transmitters not approved for normal usage
Maps and literature where Indian external boundaries have been shown incorrectly, in view of the Government of India	Importing Gold and Silver, other than ornaments
Chemicals mentioned in Schedule 1 to the Chemical Weapons Convention of U.N. 1993.	Currency in excess of prescribed limits
Wildlife products; ·         Human skeleton ·         Specified sea-shells ·         Beef, tallow, fat/oil of animal origin ·         Exotic birds except for a few specified ones ·          Wild animals, their parts and products ·         Specified Live birds and animals	Telephone and telephony equipment of restricted frequencies

 

Author: Aditya Sharma

Editor: Adv. Aditya Bhatt & Adv. Chandni Joshi