India Blocks All Trade with Pakistan under FTP Para 2.20A
In a significant geopolitical and trade move, the Indian Government has completely banned imports from Pakistan. This decision was formalised through Instruction No. 07/2025-Customs, issued by CBIC under the Foreign Trade Policy (FTP), Para 2.20A.
This import ban reflects India’s evolving stance on trade, national security, and regional diplomacy.
What is Foreign Trade Policy Para 2.20A?
Para 2.20A of the FTP empowers the Directorate General of Foreign Trade (DGFT) to prohibit trade with specific countries. This prohibition can apply to:
- All imports or exports, or both
- Specific classes of goods or services
- Particular regions or sectors
This clause gives the Indian government full legal authority to block trade with any country deemed a security threat or involved in hostile acts.
Key Highlights of Instruction No. 07/2025-Customs
- Issued By: CBIC (Customs)
- Date: May 2025
- Legal Basis: Para 2.20A of FTP, 2023
What Does This Mean for Indian Importers?
Indian importers dealing in:
- Rock salt, cement, dry fruits, leather goods
- Items routed through UAE or third countries
…must immediately rework supply chains or risk seizure at Indian ports.
Expert View: Legal and Compliance Impact
From a compliance angle, importers must:
- Recheck country-of-origin certifications in customs declarations
- Avoid using re-routing techniques that could invite penalties
- Stay updated with CBIC notifications to avoid non-compliance under Customs Act
Government Clarification and Enforcement
Enforcement has begun at all ports, airports, and ICDs (Inland Container Depots), making it a blanket ban across India.
CBIC Instruction No. 07/2025 (taxmanagementindia.com)
Frequently Asked Questions (FAQs)
Q1. Can I still import goods if the invoice was raised before the ban?
No. Even pre-ban shipments will not be cleared if they arrive post-instruction.
Q2. Will there be a refund for customs duties paid in advance?
Refund depends on the nature of deposit.
Q3. Are re-export or transshipment options available?
CBIC has not clarified this. Engage a customs consultant immediately to explore lawful remedies.
Summary
India bans all imports from Pakistan under FTP Para 2.20A. CBIC’s Instruction 07/2025 prohibits clearance of Pakistani-origin goods at Indian ports, even under existing licences.