Import Ban on Pakistani Goods Under FTP 2023: What Para 2.20A Means for India
In a decisive policy move, the Directorate General of Foreign Trade (DGFT) issued Notification No. 04/2025-26 dated 01.05.2025, inserting Para 2.20A into the Foreign Trade Policy (FTP) 2023. This change prohibits all imports and transits of goods originating in or exported from Pakistan—whether directly or indirectly—with immediate effect.
📌 What Does Para 2.20A of FTP 2023 Say?
“Notwithstanding anything contained in this Policy or in the ITC (HS), the import or transit of all goods originating in or exported from Pakistan, whether directly or indirectly, is prohibited.”
This means:
- Any violation could lead to seizure and penal consequences under FT (D&R) Act, 1992.
✅ Key Highlights for Indian Importers & Traders
| Particulars | Impact |
|---|---|
| Direct Imports from Pakistan | Fully prohibited (e.g., textiles, cement, spices) |
| Third-Country Route Imports | Banned even via UAE, Singapore, etc. |
| Transit via India | Disallowed even for goods headed to other nations |
| Customs Clearance | Likely to be more stringent, origin scrutiny rise |
| Trade Contracts in Pipeline | Must be cancelled or rerouted immediately |
📖 Legal Backing
- DGFT Notification: Notification No. 04/2025-26
- Section 5 of Foreign Trade (Development & Regulation) Act, 1992
- ITC (HS) Schedule I (Import Policy): Now to be read with Para 2.20A
🧠 Expert View: Be Cautious with Country-of-Origin Certificates
Any mention of Pakistan-origin—even as an ingredient or part—could result in consignment seizure.”
– Anil Jain, Exports Consultant, Mumbai
📌 Practical Steps for Traders
- Verify supplier declarations and COOs
- Re-evaluate contracts with trade agents in Dubai, Singapore, etc.
- Update ERP and compliance software to flag prohibited countries
- Stay updated with DGFT Trade Notices and Customs Alerts
💡 Why This Matters to You
- Small businesses importing dry fruits, rock salt, textiles, or surgical goods must pivot quickly.
- Importers using multinational suppliers must now trace back product origin for each consignment.
- Customs brokers and freight forwarders must tighten KYC and routing checks.
🔁 Related Reading on Efiletax
- How to Handle Import Bans: Compliance Checklist for Indian Businesses
- [HS Code and Country of Origin Rules Explained Simply]
FAQ: Pakistan Import Ban (2025)
Q1. Can I import Pakistani goods via Dubai?
No. The ban covers indirect imports too.
Q2. Will I face penalty if I import unknowingly?
Yes, ignorance won’t be an excuse. Customs will penalise based on origin documents.
Q3. Does this affect goods in transit already?
Yes, if goods haven’t cleared Indian customs, they will be subject to the ban.
Issued via DGFT Notification 04/2025-26, this change impacts Indian traders, importers, and logistics firms. Ensure full compliance with origin rules to avoid penalties and seizure.