The Directorate General of Foreign Trade, housed within the Ministry of Commerce and Industry of India, serves as the central nexus for coordinating the country’s foreign trade. DGFT stands out as a guiding force in the complex picture of India’s import and export scene. A dgft licence is a must-have, granting the authority to transport goods across international borders. It is essential because, without this official approval, the doors to import and export are firmly closed to would-be merchants.
What are the 10 roles of DGFT?
- Execution of EXIM Policy/ Foreign Trade Policy Implementation: DGFT spearheads the operationalization of policies crucial for India’s foreign trade, aligning strategies with the nation’s growth trajectory.
- Structured Facilitation of Foreign Trade Procedures: Crafting and upholding systematic trade procedures to avert national and global disruptions.
- IEC Code Allocation to Exporters and Importers: Issuing the Import-Export Code, an essential unique identifier for global trade, is imperative for entities engaged in international transactions.
- Management and Cataloguing of ITC-HS Code: Overseeing the International Harmonized System of Coding, enabling businesses to classify and describe products for seamless foreign trade, categorized into import and export schedules.
- eBRC Platform Maintenance and Updates: Managing the electronic platform for Electronic Bank Realization Certificates, ensuring exporters claim benefits seamlessly under various trade schemes.
- Comprehensive Dissemination of Export Policy Schedule Information: Furnishing detailed information about the Export Policy Schedule, safeguarding traders from inadvertent breaches of regulations.
- Issuance of Export Licenses for Restricted Items: Facilitating licenses for exporting restricted categories, ensuring compliance with regulations concerning banned goods.
- Advancement of Foreign Trade Relations: Actively fostering and nurturing foreign trade relations to bolster India’s economic growth and promote global business exchanges.
- Oversight of DEPB Rates Management: Supervising Duty Entitlement Pass Book Rates to maintain equilibrium in export-import dynamics and prevent market imbalances due to excessive credit.
- Regulation and Facilitation of Goods Transit: Ensuring regulated transit of goods, addressing delivery issues, feedback, and trade hurdles for seamless trade transactions.
How to get a DGFT license?
Here’s a step-by-step explanation of how to obtain a dgft or export license:
Visit the DGFT Website: Open the DGFT website through your web browser.
Navigate to Services: Look for the “Services” section on the homepage. It might be located on the main menu or as a dropdown option.
Select ‘Online ECOM Application’: Within the Services section, locate and choose the ‘Online ECOM Application’ option from the dropdown menu.
Choose License Type: Look for options related to licenses. Select the specific license you require.
Submit the Application: Once you’ve completed the form, there might be an option to generate a PDF copy of your application. Save this PDF as it might serve as your reference.
Follow-up and Await Confirmation: After submission, monitor your email for any communication from DGFT regarding your application. They might request additional information or provide confirmation and further instructions.
Remember, the process might have variations based on the specific type of license or changes in the DGFT website interface, so it’s essential to refer to the most updated guidelines and instructions available on the DGFT website for accurate and current information.
What are the Schemes by DGFT to promote exports?
DGFT has introduced various schemes to bolster exports:
MEIS: Previously in action, this scheme aimed to counter infrastructural inefficiencies for exporters but is currently withdrawn.
RoSCTL: Offers rebates on state and central taxes for garment exports using credit scrips against customs duties.
SEIS: Encourages specified service exports by providing incentives ranging from 3% to 7% of net foreign exchange earnings.
Deemed Exports: Offers rebates and exemptions to goods manufactured and used within India, supporting the domestic industry.
NIRVIK: Aids small exporters by providing insurance coverage up to 90% of the total principal and interest.
GST Refund: Allows exporters to claim refunds on GST paid for inputs used in manufacturing final products.
EOU Scheme: Facilitates duty-free procurement of raw materials and capital goods for exporters, aiming to boost exports and foreign exchange inflow.
What are the functions of DGFT?
Export Boosting Magic: DGFT’s scheme to supercharge exports by the Government of India, like a booster for exporters.
Quality Guardian: Tackling Concerns: Addressing worries about the quality of Indian exports to keep foreign buyers happy.
Trade Language Expansion: Growing the Codes: Adding new categories to the trade codes to make trade smoother.
Policy Implementer: Making Trade Rules: Putting the government’s international trade policies into action.
Trade Contacts Hub: Directory of Traders: Keeping a big list of all Indian importers and exporters for easier connections.
Trader ID Provider: Key to Trade: Giving out special ten-digit codes to Indian traders that open the trade doors.
Import-Export Control Tower: Keeping Control: Having the power to manage, limit, or even stop imports and exports.
Neighborly Trade Rules: Friendly Trade Agreements: Making sure goods move between India and nearby countries, following special trade deals.
Neighborly Commerce Boost: Growing Friendship: Increasing trade between India and its neighbors for better friendships.
Free Trade Pass: Open the Gates: Allowing free exports whenever possible, playing a big role in setting export rates.
Summary – DGFT manages vital trade functions in India, overseeing policies, regulating trade, and fostering international relations. Meanwhile, Amazon Global Selling provides a platform for Indian businesses to easily access global markets, enabling them to showcase and sell products worldwide, simplifying international trade for Indian sellers.
