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Role of Directorate General of Foreign Trade (DGFT) in exports-imports’ and it’s function

The Directorate General of Foreign Trade (DGFT) is the Government body comes under the Ministry of Commerce and Industry of the Government of India. Before 1991 DGFT was known as CCI&E which means Chief Controller of Imports & Exports. In 1991 DGFT formed to replace CCI&E and the role was also changed from the Import-Export controller to the facilitator, promoter, and regulator of import-export. It also has the objective of increasing exports in the country. It provide the following services –

  • Implements necessary laws
  • Issues Export License
  • Introduce trade incentives
  • Build strong relationship with other nations
  • Implements foreign trade policy(FTP) and procedures
  • Issue Import-Export(IEC) code
  • Maintenance of Classification of products depending upon the ITC (HS) code.
  • Build and maintain the platform for e-BRC(Bank realization Certificate)
  • Issue license for restricted export products
  • Promote exports
  • Have control on Benefits rate under various Government incentive schemes. Etc.

Implementation of Foreign Trade policies and procedures:-

Set of guidelines and instructions related to Import-Export of goods and services developed by DGFT is known as Foreign Trade Policy (FTP)

It is applicable for 5 years. Currently foreign trade policy 2015-20 is in effect and it is extended for more 1 year till 31st  March 2021 due to covid – 19 outbreak. DGFT formulate the procedures and announce the FTP.

Issuance of IEC (Import – Export Code):-

Import-Export Code (IEC) is 10 digit no. to start import export business in India. This code helps in tracking of shipments now it is integrated with PAN card. On one Pan Card one IEC is issued which is valid for lifetime.

Platform for updating and viewing eBRC:-

Banks issue the Bank realization certificate to the exporters so that they can avail the benefits under government incentive scheme under foreign trade policy and  to avoid the use of papers DGFT introduced the e-BRC module on DGFT site.

Steps to view BRC –

Step1:- Go to DGFT website – select “View and print your e-BRC”.

Step2:- Enter IEC code to check the BRC.

Step3:- List of updated e-BRC will be shown.

Step4:- BRC can be downloaded from DGFT site.

License issued for Restricted Items:-

Online applications can be done on DGFT website to issue the license for restricted items .

Director General (DG) of DGFT:-

Director General is appointed by the Central Government who heads the Directorate General of Foreign Trade (DGFT).

Eligibility Criteria:-

  • Candidate should be member of Indian Administrative Service (IAS).
  • Should have experience in public service of 30 or more Years.

DG helps the government in formulation of foreign trade Policy and it’s execution. Few of the responsibilities are as follows –

DGFT Promote the exports:-

To promote the exports of goods and services DGFT had launched various incentive scheme under Export Promotion Schemes including as follow –

  • MEIS Scheme
  • SEIS Scheme
  • Advance Authorization
  • Duty Free Import Authorization scheme
  • Export Promotion capital goods scheme
  • Deemed exports

Apart from these D+++GFT also undertakes the implementing ease of doing business for importers – exporters with the help of digitizing FTP procedures.

  • Formulation of FTP
  • Formulation of handbook for foreign trade policy (FTP)
  • Classifications of products

Office address:-  Gate no 2 , Udyog Bhavan, New Delhi India,

Facilitate the Application under various incentive scheme:-

DGFT facilitates the application under various schemes like MEIS scheme with the help of digital signature certificate online in which details of shipping bills and e-BRC are linked online.

Control on Rates of Export Incentive Scheme:-

MEIS scheme is the Government Incentive scheme under which goods exporters can claim the benefits of 2% – 5%  on the eligible export in the form of Duty Credit Scrip.

SEIS scheme is the government scheme under which service exporter can claim the benefits of 5% – 7% on the eligible exports on notified services.

Rates of benefits under MEIS Scheme & SEIS Scheme are controlled by DGFT.

Recently Government approved RoDTEP Scheme which replace the existing MEIS Scheme and RoSCTL scheme and implementation of the scheme will be done phase-wise.

Office Structure:-

It has two types of offices known as –

  1. Regional Authority(RA)
  2. zonal offices.

Zonal offices are headed by the Additional Director General of foreign trade (ADGFT). It has four offices – 1) Kolkata 2) Delhi 3) Chennai 4) Mumbai. Regional offices are headed by the Joint Director General, Deputy Director General and assistant Director General. All the DGs(Director General) sits at Udyog Bhawan in New Delhi.

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