PESO approvals for importers: Form D licences for gas cylinders and valves, foreign manufacturer approval, pressure vessels and the cost of getting it wrong

PESO is the Petroleum and Explosives Safety Organisation, part of the Department for Promotion of Industry and Internal Trade in the Ministry of Commerce and Industry, and headed by the Chief Controller of Explosives in Nagpur^[1]. It administers the Explosives Act 1884 and the Explosives Rules 2008, the Ammonium Nitrate Rules 2012, the Gas Cylinders Rules 2016, the Static and Mobile Pressure Vessels (Unfired) Rules 2016, the Petroleum Act 1934 and Petroleum Rules 2002, the Calcium Carbide Rules 1987 and the Inflammable Substances Act 1952^[1].

For most importers, PESO comes up in one of three ways:

1. Gas cylinders, cylinder valves and LPG regulators. Rule 29 of the Gas Cylinders Rules 2016 says no one may import gas cylinders filled or intended to be filled with compressed gas, or valves and LPG regulators meant for cylinders, except under a licence or approval under those rules^[2]. This is the PESO approval importers meet most often, and most of this page is about it.
2. Pressure vessels and ISO tank containers. Importing empty pressure vessels or ISO tanks for use in India needs an import permission under rule 4 of the SMPV(U) Rules 2016, and filled ISO tanks need a Form LS-2B licence^[4].
3. Petroleum products and explosives. These are licensed under the Petroleum Rules and Explosives Rules^[1]. They are specialised trades, and we do not cover their forms and fees here.

Applications are made online, through online.peso.gov.in (with separate modules for petroleum, gas cylinders and SMPV, and for explosives) and through the National Single Window System^[1].

A PESO licence is an addition to your IEC, not a replacement. Rule 29 itself says cylinder imports must also follow the Foreign Trade (Development and Regulation) Act^[2].

The Gas Cylinders Rules 2016 were amended four times in 2025, and a draft and two further amendments followed in 2026, so a checklist written in 2024 may be out of date. The Gazette note to PESO's February 2026 draft lists the principal rules, G.S.R. 1081(E) of 22 November 2016, and eight amendments up to G.S.R. 839(E) of 12 November 2025^[6].

Draft of 24 February 2026. DPIIT published draft amendment rules as G.S.R. 146(E), proposing to omit rule 48, drop one document from the Form C list for filling and storage licences, and let the licensing authority allow different storage arrangements for cylinders packed in certified racks or cages^[7].

April 2026 amendment (reported). TeamLease RegTech reports that G.S.R. 315(E) of 27 April 2026 exempts cylinders and valves imported by defence and space establishments for their own use, drops prior permission for importing empty cylinders without valves and for valves and LPG regulators from approved foreign makers holding valid import licences, and extends rule 48 to other flammable gases^[8]. We have not read the Gazette text, and the summary does not quote the new wording. Until you have seen it, keep treating the Form D licence and the foreign maker approval as required, because rule 29 and the rule on producing the licence to Customs are what officers at the port check^[2].

June 2026 amendment (reported). The same source reports that G.S.R. 447(E) of 5 June 2026 finalised the February draft: rule 48 omitted, a Form C item dropped and a new Form F condition 8A allowing higher stacking for industrial gas cylinders in certified structured packaging^[9]. This mainly affects storage licence holders, not the import licence itself.

Enforcement in 2026. The February 2026 Nhava Sheva order on cylinders shipped before the Form D licence was issued is the clearest signal of how Customs reads the rules this year^[5]. We track changes across all regulators on the new rules for 2026 page and the compliance calendar.

The table maps common imports to the PESO approval that applies. Where an item is not listed, check the Act and rules PESO administers^[1] before assuming it is free to import.

Rules 29 to 34 of the Gas Cylinders Rules 2016 set out the import regime, and PESO reproduces them in its licensing SOP.

• Licence first (rule 29). No import of cylinders filled or intended to be filled with compressed gas, or of valves and LPG regulators for cylinders, without a licence or approval^[2]. The importer must also have handling, transport and storage facilities, an emergency action plan and trained technical staff, and if it imports filled cylinders above the rule 44 exempt quantity it needs a Form F storage licence^[2].
• Show the licence to Customs (rules 31 and 32). The importer must produce its import licence before the Commissioner of Customs, and imported cylinders, valves and LPG regulators may be landed only with Customs permission^[2].
• Land and air routes (rules 33 and 34). Filled cylinders, valves and LPG regulators can come by land only with prior Central Government sanction in each case, and filled cylinders by air only with prior sanction from the DGCA^[2].

The import licence is Form D, granted by the Chief Controller of Explosives in Nagpur^[2], for the period the Chief Controller deems necessary up to a maximum of one year^[2].

Approved makers only. PESO's FAQ is clear that only PESO-approved cylinders may be imported for filling and use in India, and only by the Indian agent of a foreign manufacturer that holds PESO approval^[3]. In practice that means two approvals in sequence: the foreign manufacturer's approval, then your Form D licence.

Both, for different things.

The foreign manufacturer applies for its own approval as a cylinder or valve maker, in the format set out in Schedule III of the Gas Cylinders Rules, and names its Indian distributor, submitting their agreement with the application^[3]. PESO considers the maker's proven track record, ten years of manufacturing experience and widely distributed market share, and asks for product liability insurance and ten years of supply records^[2].

The Indian importer applies for the Form D import licence for each import^[2]. Only the Indian distributor whose MoU with the foreign manufacturer has been filed with PESO may import that maker's new empty cylinders or valves^[3]. If you are not the named distributor, you cannot simply buy approved cylinders from the factory and import them.

Your customs broker presents the licence at the port, but responsibility stays with you. In a 2026 Nhava Sheva order, the importer was penalised for invalid PESO licences submitted through its broker, because the broker acted with the importer's consent^[5].

If you are a trader rather than the manufacturer's named distributor, read our guide for distributors on how to get onto a foreign maker's PESO file, and the first-time importers guide for the wider set of registrations. Cylinders sourced from Chinese factories follow exactly the same two-approval rule; our importing from China page covers the rest of that trade lane.

This step is the manufacturer's job, but importers usually drive it, so it helps to know the sequence PESO's SOP describes.

Standards. Foreign manufacturers may make cylinders and valves to any internationally accepted standard approved by the Chief Controller, and their design drawings may be endorsed by BIS or an accredited third-party inspection agency^[3]. Valves are narrower: PESO approval applies to valves connecting directly to gas cylinders, and imported valves must be made to the IS, ISO or EN codes listed in Schedule I and approved by the Chief Controller^[3].

Fees. The foreign maker pays fees under 'Fees other than licence fees' in Schedule V, through Bharatkosh^[3], plus an additional Rs 6,50,000 for evaluation of the foreign unit^[2].

Duration. Approval is granted for one year at first, extended on satisfactory performance, with re-evaluation of foreign units every five years; PESO may issue provisional permission pending the physical evaluation^[2]. Extensions are applied for under rule 55, and a late application is accepted up to one year after expiry with a late fee, but never after that^[3].

Once the foreign maker is approved and you are its recorded distributor, the Form D application itself is document-driven. The steps below follow PESO's licensing SOP.

PESO's SOP lists ten items for a Form D import licence^[2].

PESO's fees for the Gas Cylinders Rules are in Schedule V^[3]. We have verified two figures from PESO's own documents and report the rest as secondary sources describe them.

• Foreign manufacturer evaluation: Rs 6,50,000 additional fee for evaluating a foreign unit^[2].
• Cylinder testing station approval: Rs 10,000 scrutiny fee including the first year^[3]. This applies to testing stations in India, not to importers, but it shows the scale of Schedule V fees.
• Form D import licence: a legal-news site reports that the amended Schedule V fee for the first 100 cylinders is Rs 2,000, reduced to Rs 1,000 for micro and small enterprises and start-ups and Rs 400 for women entrepreneurs^[10]. We have not read the Gazette text.
• Concessions: news reports say the Commerce Ministry announced concessions of 80% for women entrepreneurs and 50% for MSMEs on PESO licence fees^[11].

Because Schedule V has been amended and a further draft amendment exists, check the fee on the PESO portal's payment screen before you budget.

PESO's documents do not set a fixed number of days for granting a Form D licence. The SOP says only that the licence is granted after the documents are verified and found in order^[2]. Plan for the foreign manufacturer's approval to take the longest, since it involves a physical evaluation of the factory, though PESO can give provisional permission meanwhile^[2].

Validity is clearer:

Put every PESO validity in a diary: a Form D licence lasts at most one year^[2], foreign maker approval starts at one year and is extended on performance^[2], and Form E and F filling and storage licences run from one year up to ten years^[3].

Missing a date costs more than a late fee. An approval extension can be applied for under rule 55, and a late application is accepted for up to one year after expiry with a late fee, but never after that^[3]. A Form D licence that lapses between two shipments is worse: the licence must be valid on the Bill of Lading date, and one obtained afterwards does not cure the import^[5].

Worked example. A distributor holds a Form D licence granted for the full year and plans quarterly shipments. The fourth shipment is delayed by the supplier and now loads after the licence end date. The distributor must get a fresh Form D before the goods leave the foreign port, not after they arrive, or it risks the confiscation and penalties seen in the 2026 Nhava Sheva case^[5]. The same distributor should also confirm its IEC was updated in the April to June window^[12], since an IEC that is not updated is de-activated^[12].

Use our licence renewal date calculator to work out filing dates, the compliance calendar for recurring deadlines, and the India compliance fees 2026 data page to compare PESO fees with other regulators. If you are unsure which PESO licences your business holds or needs, ask for a free compliance check.

This is the single most expensive mistake in PESO imports. Customs looks at the date of shipment, not the date your goods arrive.

In an order of February 2026, the Jawaharlal Nehru Custom House dealt with seven gas cylinders shipped on 29 November 2025. The importer first produced PESO licences that the PESO portal showed as invalid, then obtained fresh Form D licences in January 2026. Customs held that a licence must be valid on the date of shipment, citing paras 2.17 and 2.18 of the Handbook of Procedures, so licences issued after the Bill of Lading date did not cure the import^[5].

The result: the cylinders were confiscated, with an option to redeem them on a Rs 30,000 fine, and the importer was given penalties of Rs 5,000 under section 112(a) and Rs 50,000 under section 114AA of the Customs Act^[5]. The importer was held responsible even though its customs broker had filed the documents^[5].

The lesson for any importer: get the Form D licence issued, check it on the PESO portal, and only then let your supplier load the goods. Our why shipments get held article covers other timing traps.

A PESO licence is one document in a longer customs file: you also need an IEC, an ICEGATE login, the right HS code and the standard shipping documents. No goods may be imported without an IEC unless specifically exempted^[12]; see our IEC guide, the importer exporter code glossary entry and the DGFT portal walkthrough. Bills of entry are filed online, and ICEGATE registration is a prerequisite for that^[13]; the ICEGATE portal guide covers registration.

The Foreign Trade Policy lists the mandatory import documents, including the transport document, commercial invoice cum packing list and the bill of entry, plus documents required under specific laws^[12]. For cylinders, the Form D licence is one of those, and Customs lets the goods land only with its permission^[2]. Our customs clearance documents checklist and the article on documents required for import in India list the rest.

Domestic safety norms apply to imports just as they apply to goods made in India^[12], so check every regulator, not only PESO. The HS code approval finder and the approval checker flag approvals tied to a product; confirm the HS code with your broker. While cylinders sit at the port waiting for a licence, demurrage runs, and the goods leave only after Customs gives out of charge.

The SMPV(U) Rules 2016 cover storage and transport of compressed gases in pressure vessels. For importers, PESO's SOP sets out these routes^[4]:

• Empty pressure vessel imported for transport use within India: import permission under rule 4, then a Form LS-2 licence.
• Empty ISO tank container imported for use within India: import permission under rule 4, then a Form LS-2A licence.
• Filled ISO tank imported and returned to the country of origin, or empty ISO tank filled in India and exported: Form LS-2B licence.

The import permission is applied for in Form AS-3, with the initial and periodic inspection reports and a design drawing vetted by a third-party inspection agency of the country of origin^[4]. An LS-2B licence also needs DGFT permission for the import of the gas^[4]. Both import permissions and LS-2B licences are granted only at PESO's head office^[4].

For imported cylinders and valves, the key paperwork is the manufacturer's test and inspection certificate for each lot, issued by the inspecting authority against the approved design^[2]. Drawings must carry the manufacturing code and design details and be endorsed by BIS or a TPIA^[3].

For cylinders in use in India, PESO's FAQ says every cylinder must be labelled with the name of the gas, the name and address of the person who filled it, and a 'Warning' mark; this is in the LPG section of the FAQ^[3]. The same FAQ says LPG cylinders must be periodically tested every 10 years^[3]. Check the label and testing requirements for your gas with PESO.

If your cylinders or valves go to retail customers in packages, the general LMPC package declarations can apply too^[14].

Use this list before you raise a purchase order. Each line maps to a rule above, and missing any one can leave goods stuck at the port.

Check your importer exporter code status on the DGFT site before ordering; an IEC that has not been updated is de-activated^[12].

Yes, in one narrow case. Under rule 3(5) of the Gas Cylinders Rules, foreign cylinders that are not PESO-approved may be imported by a holder of a Form E and F filling licence, only to fill them with gas and re-export them to the country of origin, following Customs and port procedures and showing PESO that the filled cylinders will go back^[3].

A similar carve-out exists for valves. Valves imported to fit on PESO-approved cylinders that the Indian importer makes in its own factory and exports for a bona fide purpose do not need the usual valve approval, provided the importer shows PESO the valves are fitted on Indian-origin cylinders for export^[3].

Neither route lets the goods enter the Indian market. If you later want to sell in India, the normal approvals apply^[3].

Most problems come from the two-approval structure and from timing.

Goods imported without a valid PESO licence are treated as improperly imported under the Customs Act. In the 2026 JNCH case, Customs held the cylinders liable to confiscation under sections 111(d), 111(l) and 111(m), allowed redemption on a Rs 30,000 fine, and imposed penalties of Rs 5,000 under section 112(a) and Rs 50,000 under section 114AA^[5]. Customs also has the power to refuse landing: imported cylinders, valves and LPG regulators can be landed only with Customs permission^[2].

The importer cannot shift the blame to its broker. The same order found the importer liable because the broker acted with its consent under section 46 of the Customs Act^[5].

Redemption is not guaranteed in every case. The JNCH order allowed it because valid PESO licences were eventually produced and the importer agreed to follow their conditions^[5].

1. A gas distributor importing empty cylinders. A Gujarat distributor wants to import 500 empty seamless cylinders from a maker in Europe. The maker has no PESO approval yet, so it files a Schedule III application naming the distributor, pays the Rs 6,50,000 evaluation fee through Bharatkosh^[2], and waits for evaluation or provisional permission^[2]. The distributor then applies for a Form D licence. No storage licence is needed because the cylinders are empty, but the distributor must show handling facilities, an emergency plan and trained staff^[2]. The valves are ordered separately, so they need a separate licence^[3].

2. A refrigerant trader importing filled cylinders. A Mumbai trader imports filled refrigerant cylinders. It needs a Form F storage licence before the Form D application^[2], plus filler certificates, the MSDS and an agreement to return the empties^[2]. Its Form D is valid for up to a year^[2], so it times shipments within that window and confirms the licence predates every Bill of Lading^[5].

3. An industrial buyer importing an ISO tank. A chemical company imports an empty ISO tank container to use within India. It applies to PESO's head office for import permission in Form AS-3, with the TPIA inspection reports and vetted design drawing, and then for a Form LS-2A licence^[4].

PESO approvals work differently from product-certification schemes such as BIS: they license specific imports and premises, not just a product model.

Browse every approval we cover on the approvals hub.