Legal principle

A change in export policy from Free to Restricted applies to exports made after the notification date; goods bought or stored at the port without a bill of lading or a registered ICLC get no transition protection under Para 1.05(b) of the Foreign Trade Policy. But a licensing authority must decide licence applications within a reasonable time.

Court decision

The court upheld Notification No.12/2026-27 and Para 1.05(b). It refused to direct customs to clear shipping bills without a licence. But it directed the DGFT to give a personal hearing and decide the 22.04.2026 licence application by a reasoned order within four weeks, considering the full pre-notification payment, the lack of a domestic market, the Strait of Hormuz shipping delay, port charges and national security. A pending policy review alone is not a reason to leave the application undecided.

Facts

Gimpex Private Limited, a Three Star Export House, has exported Baryte (natural barium sulphate) for decades. It bought Grade A and Grade B Baryte from the Andhra Pradesh Mineral Development Corporation through export-only tenders. On 17.04.2026 it still held 1,89,500.16 MT, worth about Rs.225 crore, lying at Chennai Port. That day the DGFT issued Notification No.12/2026-27 under Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, moving Grade A and Grade B Baryte from "Free" to "Restricted", so a licence is now needed to export them. The company had no Irrevocable Commercial Letter of Credit (ICLC), so it did not get the transition protection in Para 1.05(b) of the Foreign Trade Policy 2023. Its licence application dated 22.04.2026 stayed undecided. It filed a writ petition in the Madras High Court challenging the notification and Para 1.05(b).

Key provisions

• Section 3(2), Foreign Trade (Development and Regulation) Act, 1992 — Powers to make provisions relating to imports and exports.