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How Does DGFT Help India in Export Trading?

The Government of India’s Ministry of Commerce and Industry established DGFT as an agency to make exporting simple for companies. It is in charge of creating and carrying out the nation’s foreign trade policy, with its main office located in New Delhi. As a government organisation, DGFT works to uphold and expand exports and trade partnerships with various nations, aiding sellers in simple exports. Additionally, it grants export permits and introduces trade incentives. The DGFT has four zonal offices, each led by a Zonal Joint Director General of Foreign Trade, making it easier for sellers to begin exporting. These offices are located in New Delhi, Mumbai, Kolkata, and Chennai. There are 35 Regional Authorities spread out over the nation.


What are the services DGFT offers?

The following are a few of the services the DGFT provides to support Indian companies and encourage exports:

  • To put into practise India’s Exim Policy, or Foreign Trade Policy, by adopting various programmes and regulations through its network of DGFT regional offices across the nation. The DGFT coordinates its operations with state governments and all other Ministries of Commerce and Industry of the Government of India.
  • In order to provide Indian exporters and importers with an exporter importer code number. In order to import and export goods in India, producers or dealers need to have an IEC Number, which is a special 10-digit code. For conducting import-export trade activities, DGFT IEC Codes are required. They also give businesses access to benefits regarding their imports/exports, Indian Customs, export promotion councils, etc. in India.
  • According to the bilateral agreements between India and other nations, the DGFT authorises or controls the transit of goods from India or to its neighbouring countries.
  • The DGFT is also in charge of controlling the standard input-output norms.  The DGFT also implements any modifications, formulations, or additions of new codes in ITC-HS Codes.

What are the services DGFT offers


What is a DGFT Digital Signature Certificate?

To confirm that the exporter and documents are valid, the DGFT created the Digital Signature Certificate (DSC). For all electronic papers published to its website, the DGFT has mandated the use of DSC. Your online transactions are highly secure because to the DSC, which guarantees that all information exchanged is completely private. DSC strengthens, facilitates, and increases the security of the IEC issuing and modification processes. On the DGFT website, DSC makes it simple and authentic for export-import organisations to submit or apply for any document. DSC plays a significant role in the process of obtaining licence issuance. Only organisations accredited by India’s Controller of Certifying Authorities (CCA) should issue Class-2 or Class-3 documents. Any vendor whose company has an IEC and other relevant documentation for verification can receive it.


How are Exports From India Governed by the DGFT?

Procedures of Foreign Trade

Planning and announcing processes for exporters’ overseas trade is one of the DGFT’s main responsibilities. To aid exporters in conducting international business in the nation smoothly, straightforward and user-friendly procedures are developed.

IEC for Importers and Exporters

For potential exporters, applying for an Importer-Exporter Code (IEC) is now hassle-free. Now, sellers can apply at any moment from the convenience of their homes for the 10-digit unique registration code provided by the DGFT website. The IEC is given out to help in managing and tracking exporters’ and importers’ cargo.

Exim Policy

A set of rules must be followed in order to keep up commercial relations and ensure smooth imports and exports from a nation. This collection of guidelines to oversee export companies is provided by the EXIM policy or Foreign Trade Policy. These regulations, created by the DGFT, are made public by the Indian government under Section 5 of the Foreign Trade Act of 1992 for a five-year term.

HS codes of Indian Trade Clarification

The worldwide Harmonised System of Coding, or ITC HS codes, were adopted by India to help with the expansion of international trade. Exporters can select a product category and confirm that the commodity description is accurate using these codes. India has two schedules for the ITC HS Codes: Schedule 1 is for imports, and Schedule 2 is for exports. Within India, the DGFT is empowered to add new codes and modify existing ones for certain commodities.

License For Export

A number of goods that can be exported from India require a licence from DGFT. The majority of the main product categories, including textiles, home decor, handicrafts, leather items, and more, can be exported with ease. An export licence from the DGFT is necessary for an exporter to sell goods that the Indian government has designated as “restricted,” such as horses and some petroleum products. On the DGFT website, these licences can be requested.

Trade Promotion

Launching export promotion programmes under the Foreign Trade Policy is another crucial duty of the DGFT. The agency has put in place programmes including the Advance Authorization Scheme, Duty Free Import Authorization Scheme, and Deemed Exports to help vendors. In order to encourage international trade, it also takes on the implementation of “Ease of Doing Business” for exporters by streamlining and digitising export-import procedures. Additionally, DGFT publishes circulars, notifications, and public notices.

Quality Control and Trading Issues

The DGFT resolves comments, ideas, and other trade-related issues to allay exporters’ worries. Through this forum, it handles both complaints received from overseas purchasers for Indian exporters and complaints from Indian importers against foreign suppliers. In doing so, it aims to keep export trade flowing smoothly.


Final Words

India is no longer a difficult nut to crack for exporters. The offline trade component of the export business game is not the only one. A seller can become an exporter and run his or her business from any location in India by adhering to DGFT rules and regulations and thanks to the increased use of the internet and e-commerce worldwide.

An ecommerce exports program called Amazon Global Selling, which was introduced in 2015, assists Indian companies in beginning to export and do business abroad. With the help of Amazon, more than 70,000 Indian sellers from every corner of the nation have effectively expanded their operations to foreign marketplaces.