No Need to Warehouse Goods Shipped Before Authorisation If Cleared After Approval: DGFT

Relief not applicable to restricted items or those under STEs without special DGFT permission.

The Directorate General of Foreign Trade (DGFT) has issued a significant clarification regarding the applicability of Para 2.12 of the Foreign Trade Policy (FTP), 2023, providing a major relief to importers facing procedural hurdles related to warehousing requirements.

The policy circular (No. 02/2025-26) addresses concerns raised by several importers who were being compelled by customs authorities to warehouse goods that were shipped before the issuance of import authorization, even when they possessed valid authorizations at the time of customs clearance.

According to Para 2.12 of the FTP 2023, goods that have already been imported, shipped, or arrived in advance but are not yet cleared from customs, can be cleared against authorizations issued subsequently—provided the goods are first warehoused. However, this requirement was not intended to apply universally.

The DGFT has now clarified that mandatory warehousing is not required in cases where:

• Goods have arrived before the issuance of the authorization,
• The importer has obtained the necessary authorization before customs clearance, and
• The items are not classified as ‘Restricted’ or traded through State Trading Enterprises (STEs), unless specifically permitted by DGFT.

The clarification is expected to streamline import procedures and reduce logistical and financial burdens on legitimate importers who often face delays in issuance of Advance Authorisations after goods have been shipped.

“This facilitative measure is in line with the intent of FTP 2023 to ease trade and reduce compliance costs,” the circular states, reaffirming that warehousing should not become an unnecessary requirement in legitimate import scenarios.

Notification Details

Policy Circular No. 02 /2025-26

Date: 22nd July, 2025

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Mariya Paliwala

Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

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