DGFT’s role in regulating India’s exports
The DGFT was established as an agency of the Ministry of Commerce and Industry of the Government of India to make exporting easier for enterprises. It is responsible for designing and implementing the country’s Foreign Trade Policy, with its headquarters in New Delhi. As a government agency, the DGFT works to maintain and grow exports and trade links with many countries, thereby supporting sellers in exporting their products more easily. It also provides export licenses and trade incentives.
The DGFT has four zonal offices in New Delhi, Mumbai, Kolkata, and Chennai, each led by a Zonal Joint Director General of Foreign Trade, making it easier for sellers to start exporting. All around the country, there are 35 Regional Authorities. Understanding the significance of DGFT in export trade will build the framework for expanding globally, whether you’re a current seller in India with a goal to launch an export firm or you have a fresh idea. The following are some of the roles of DGFT.
- Procedures for international trading
One of the DGFT’s main responsibilities is to arrange and announce exporters’ foreign trade procedures. Simple and user-friendly procedures have been developed to assist exporters in conducting seamless foreign trade in the country.
2. International Economic Commission (IEC) to exporters and importers
For ambitious exporters, obtaining an Importer-Exporter Code (IEC) has become much easier. Sellers can now apply for a 10-digit unique registration code on the DGFT website at any time from the comfort of their own homes. The IEC is given to help exporters and importers track and manage their goods.
3. HS Codes for ITC (Indian Trade Clarification)
India adopted the ITC HS codes to encourage the growth of international trade (the international Harmonized System of Coding). Exporters can use these codes to select a product category and guarantee that commodity descriptions are correct. The ITC HS Codes in India are separated into two schedules: Schedule 1 for imports and Schedule 2 for exports. Within India, the DGFT has the authority to create and amend commodity descriptions as well as introduce new codes.
4. Export Licenses
The Directorate General of Foreign Trade (DGFT) offers licences for a variety of products that can be exported from India. Textiles, home accessories, handicrafts, leather items, and other top product categories can all be simply exported. An export licence from the DGFT is required for an exporter to sell products classed as “restricted” by the Indian government, such as horses and a few petroleum liquids. On the DGFT website, you can apply for these licenses online.
We hope now you know about the main functions of DGFT in regulating India’s exports.
Also read: Top products That are Exported from India to the USA
