Negative List for imports
The negative list for imports consists of:
(a) Freely Importable Items: Import of all items, except those included in the Prohibited List, is permissible free of duty for export production under a Duty Exemption Scheme. Most capital goods fall into this category. Items in this category do not require import licences and may be freely imported by any individual or entity.
There are no quantitative restrictions on imports of capital goods and intermediates. Import of second-hand capital goods is permitted provided they have a minimum residual life of 5 years. Under the Export Promotion Capital Goods (EPCG) Scheme, exporters are allowed to import capital goods (including computer systems) at concessional customs duty, subject to fulfilment of specified export obligations. Service industries enjoy the facility of zero import duty under the EPCG Scheme. Likewise, hospitals, air cargo, hotels and other tourism-related industries. Software units can use data communication network to export their products.
Imports are allowed free of duty for export production under a duty exemption scheme. Input-output norms have been specified for more than 4200 items.
These norms specify the amount of duty-free import of inputs avowed for specified products to be exported.
(b) Prohibited List: The import of the following four items in India has been completely banned
• Tallow, Fat and/or Oils, rendered, unrendered or otherwise, of any animal origin including the following:
- Lard stearine, oleo stearine, tallow stearine, lard oil, oleo oil and tallow oil not emulsified or
- mixed or prepared in any way;
- Meat's-foot oil and fats from bone or waste;
- Poultry fats, rendered or solvent extracted;
- Fats and oils of fish/marine origin, whether or not refined, excluding cod liver oil, squid liver
Oil or a mixture thereof and Fish Lipid oil containing Eicospentaenic acid and
Decosahexaenoic acid; and
- Margarine, imitation lard and other prepared edible fats of animal origin.
• Animal rennet.
• Wild Animals including their parts and products and ivory
(c) Restricted List: Restricted items can be imported only with licences and only by actual users. The import of items in this list are restricted on the grounds of security, health and environmental protection or because goods are reserved for production by small and tiny enterprises, which are home-based or village-based and which require low skills and employ a large number of people. However, the policy of restricting import of consumer goods is changing.
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