Every country can grow by importing and exporting. India is one of the fastest-growing countries for export. India saw its merchandise exports reach a new record in 2021. India is rich in resources. Indian Exporters have been involved in the export-import trade since the beginning to see the potential and take advantage of it. There are so many benefits for India to improve its exports. International Trade will provide assistance if you’re still not sure which product you should start with.
What is DGFT?
The Directorate General of Foreign Trade, (DGFT), is a department of the Ministry of Commerce and Industry of India. The Director-General of Foreign Trade heads it. This office was formerly known as Chief Controller for Imports & Exports (CCI&E) until 1991. After liberalization in 1991, DGFT replaced CCI&E and its role was changed from Prohibition and Controller Exports and Imports to Facilitator and Promotor of Exports and Imports. In order to achieve the country’s goal of increasing exports, it implements all laws, issues export licenses, creates trade incentives, and develops trade relationships with other countries.
Role of DGFT and its Functions
The DGFT coordinates with the state government and all departments of the Ministry of Commerce and Industry (Govt of India) in order to fulfill its functions. DGFT has several major functions.
- The exclusive responsibility of incorporating various policies is entrusted to DGFT. This pertains to trading such as Foreign Trade Policy.
- DGFT has been granted the licensing authority to exporters, importers, import and export businesses.
- DGFT will assist with the restriction, prohibition, and regulation of import and export services
- The note to issue for Notifications, Public Notices, Circulars, etc. is the main functional role of DGFT.
- DGFT will issue you with an Importer Exporter Code if your international business is ready. It addresses the most important requirements for exporting business and services.
- The DGFT aids in the implementation of new schemes as they become available. This is relevant to the country’s trading benefits.
DGFT has also launched ITC (HS CODE), Schedule-1, for Indian imports. Schedule 2 will include export items from India.
The details and depth of the DGFT EXIM are required to acquire the DGFT Services. What you should know is that you must have Import Export Code. Your business will have greater options in terms of export and import. It will bring you the benefits of being able to access the international market for any products or services that they offer. IEC Code is the key to entering the international market. This is the necessary involvement to ensure the success of your trading company for a given period.
Importance DGFT
- DGFT not only helps with economic growth but also gives a boost to the trade industry.
- It plays an important part in the issuance of Notifications (Public Notices, Circulars), etc.
- It provides a 10 digit IEC, which fulfills the primary requirement of import/export.
- DGFT introduces new schemes periodically regarding the benefits of citizens throughout the country.
How DGFT Regulates India Trade
The Foreign Trade Policy (DGFT) is formulated and implemented with the aim of promoting India’s exports. The DGFT issues scripts/authorization to export and monitors the compliance of their obligations through a network that includes 24 regional offices.
All regional offices offer assistance to exporters regarding development in international trade. WTO agreements can be used to aid exporters in their international dynamic environment import and export decisions.
DGFT offers many services which will benefit both the exporters as well as the importers. As per the Foreign Trade policy, registered business entities will be eligible for benefits. The exporters can export after they have filed LUT under GST. It is done through the payment tax. Exporters can request refunds for the tax they have paid.
DGFT offers several schemes such as MEIS, RoDTEP SEIS, and EPCG. Advance License, DFIA, TMA, RoDTEP, Deemed exported benefits, and many more.
It is profitable to sell products in foreign countries. You can make big profits and get paid promptly. This can be a complicated & difficult process. Proper guidance is necessary to make sure you have all the documentation, insurance, and tariffs you need. It’s important to have this information when you make your first sale. Import Export consultants and private firms are available to assist businesses or companies in importing to or exporting to a particular market. Import Export Consulting Services helps companies find the right markets and makes sure that the process goes smoothly.
Numerous reliable Import Export Consultancy Services providers will be happy to answer any questions you may have about import-export. Hire the best DGFT Consultants to help you sell your products internationally.
Sometimes, it can be difficult to understand policies. Experts are available to help. Dgft Consultants will help you solve all problems related to export-import.
Authors Bio:
Mr. Mehul Goyal is a professional DGFT Consultant with experience of more than 30 years and specialized in the field and is offering DGFT Consulting Services all over India. He is working with many importers and exporters even before DGFT was instigated in the markets.