Prohibited, restricted and SCOMET exports: checking your product's export policy

This guide is for any exporter who needs to confirm that a product can legally leave India, and on what conditions. It explains the export policy categories in the ITC(HS) classification, how to check your product, when you need an export authorisation, and how SCOMET controls on dual-use items work.

Where export policy is written

India's export policy for goods is set out in Schedule 2 of the ITC(HS) classification, issued by DGFT under the Foreign Trade (Development and Regulation) Act, 1992. Schedule 2 lists, by ITC(HS) code, every item whose export is not simply free, together with any conditions. Anything not listed is generally free to export, subject to other laws. Schedule 2 is amended by DGFT notifications, sometimes with immediate effect.

The policy categories

Policy	What it means	Typical examples
Free	Export without an export authorisation, but any conditions in the policy column still apply	Most manufactured goods
Free subject to conditions	Free, but with a condition such as registration of contracts, pre-shipment inspection, a quota or a minimum export price	Several farm products
Restricted	Export only against an export authorisation (licence) from DGFT	Sugar, some seeds and chemicals, items under quota
Prohibited	No export allowed; DGFT does not issue authorisations	Wild animals and their products, beef, items under temporary bans
State Trading Enterprise (STE)	Export only through the designated STE, unless the policy allows otherwise	A few specified items

The policy column of Schedule 2 often carries conditions that matter more than the category itself, so always read the full entry and the chapter notes.

How to check your product

1. Classify your product correctly at eight digits. Use the HS Code Finder as a starting point and confirm with your customs broker.
2. Look up the code in the ITC(HS) export policy on the DGFT website, and read the chapter notes and any policy condition attached to it.
3. Check Appendix 3 to Schedule 2 (the SCOMET list) if your product is a chemical, biological material, electronic or telecom equipment, machine tool, drone, software or technology with possible military or weapons use.
4. Search recent DGFT notifications and trade notices for your product. Bans, minimum export prices and quotas are often imposed or lifted at short notice. Our alerts flag major changes.
5. Check other laws that apply to your goods: wildlife and CITES rules, rules on antiquities, controls on narcotic drugs and their precursors, and UN sanctions on certain destinations.

Restricted items: getting an export authorisation

For a restricted item, apply on the DGFT portal in form ANF 2N with your IEC, the item details, the quantity and value, the buyer and your export contract. Applications are considered by DGFT's Exim Facilitation Committee, which may approve, reject or approve with conditions. Some restricted items are released through periodic allocation rounds announced by trade notice: in 2025 and 2026, for example, DGFT called for applications for pharma-grade sugar and reviewed quota allocations for wheat flour products. Do not sign a firm contract until you hold the authorisation or know the allocation rules.

Bans, quotas and minimum export prices on farm goods

To protect domestic supply and prices, the government uses export bans, quotas and minimum export prices (MEPs) on sensitive farm products. In recent years these have covered items such as wheat, sugar, onions and some types of rice, and they have been tightened and relaxed several times. Under an MEP you cannot export below the set price. Before you quote, check the current notification for your exact code. Read the transitional arrangements in any new ban carefully: notifications often allow shipments already in the pipeline, such as goods already handed over to customs or backed by an irrevocable letter of credit opened earlier, but only on the terms they state.

SCOMET: dual-use and strategic items

SCOMET stands for Special Chemicals, Organisms, Materials, Equipment and Technologies. The SCOMET list in Appendix 3 has nine categories:

• Category 0: nuclear materials, equipment and technology (licensed by the Department of Atomic Energy);
• Category 1: toxic chemical agents and other chemicals;
• Category 2: micro-organisms and toxins;
• Category 3: materials, materials processing equipment and related technologies;
• Category 4: nuclear-related other equipment and technology;
• Category 5: aerospace systems and related equipment and technology;
• Category 6: munitions list (licensed by the Department of Defence Production);
• Category 7: certain emerging technologies and related items;
• Category 8: special materials and related equipment, electronics, computers, telecommunications, information security, sensors and lasers, navigation, marine, aerospace and propulsion.

DGFT headquarters issues authorisations for the other categories. Applications are made online in the forms set out in Chapter 10 of the Handbook of Procedures, with an end-user certificate from the buyer, technical specifications and the purchase order. An Inter-Ministerial Working Group examines the end user, the end use and the risk of diversion. A standard authorisation is valid for 24 months.

Regular exporters can use general authorisations for some categories, such as intra-company transfers, specified chemicals, information security and telecom items, and certain drones. These come with conditions such as an internal compliance programme and periodic reporting to DGFT.

SCOMET also covers technology and software sent electronically, not only physical goods. Under the catch-all rule, you need an authorisation even for an unlisted item if DGFT tells you so, or if you know or have reason to believe it may be used for weapons of mass destruction or diverted to military use.

Common mistakes

• Checking only the category and ignoring the policy condition in Schedule 2.
• Assuming a product is not SCOMET because it is commercial: some common industrial chemicals, telecom equipment with encryption and machine tools are listed.
• Sending samples of restricted or SCOMET items without authorisation.
• Relying on an old notification when a ban, MEP or quota has since changed.
• Sharing controlled technical data by email with an overseas party without checking SCOMET.

Related on Exportsmitra

• HS Code Finder
• Policy and market alerts
• Export customs clearance: from shipping bill to let export order
• IEC: getting, updating and keeping your Importer Exporter Code active

Sources

• DGFT: General Note on Export Policy (Schedule 2, ITC(HS))
• DGFT: Foreign Trade Policy 2023, Chapter 10 (SCOMET)
• DGFT: Handbook of Procedures, Chapter 10 (SCOMET procedures)
• DGFT trade notices (restricted item allocations)
• DGFT portal: ITC(HS) policy, notifications and ANF forms

Last checked 1 October 2026. Rules change: confirm with DGFT before you act.