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DGFT Stands For Directorate General of Foreign Trade
DGFT Stands For Directorate General of Foreign Trade
The Directorate General of Foreign Trade is the sole body that implements all the policies
which are concerned with foreign trade. This comes as the primary role of the body as India is
the fastest growing country in trading as well as in population. That is why it becomes a matter
of high priority to ensure an adequate implementation of the trading policy.
Implement Foreign Trade Procedures
In the present day, we all have our Aadhar Cards as our unique identification ID. Similarly, in an
export-import business, an organization or an individual must have an IEC Code. This code is
referred to as Import-Export Code. It is a 10-digit number that is issued by DGFT as a unique ID
to trade globally. A person can apply to get an IEC code on the DGFT website. The portal is
available for everyone who wishes to trade across the globe. It is essential for an individual to
have their PAN card because the IEC code is only issued o the people having their Permanent
Account Number.
Document and Maintain Classifications ITC-HS Code
India sanctioned the ITC HS code (the International Harmonized System of Coding) to develop
and improvise foreign trade. ITC HS code allows several businesses and individuals to select
their respective product categories. Not only this, they are allowed to provide the proper
descriptions of the goods they want to sell in foreign countries. The Directorate General of
Foreign Trade divided the ITC HS code into two schedules- Schedule 1 for imports and Schedule
2 for exports.
Electronic Bank Realization Certificate (BRC) or eBRC is the certificate issued by the banks to
the desired exporter. It ensures that the exporters are claiming certain benefits under various
schemes of the Foreign Trade Policy. This was one of the initiatives taken by the Government of
India to promote paperless trading, and the Directorate General of Foreign Trade has created the
electronic platform for BRC.
Provides Information About the Export Policy Schedule
The concept that half-knowledge is dangerous is also applicable in government bodies. Because
in foreign trade, if an individual is not fully aware of the rules and regulations, it might cost the
business or the person millions of fortunes. That is why to avoid any such situations, the
Directorate General of Foreign Trade provides complete information about the everything.
Amongst which Schedule 2 that is only concerned with exports are available with full details of
the DGFT website.
Grant Export Licenses to Restricted Items
There are many categories that are banned in India to sell, or likewise in other countries. These
categories can be beef, leather, oils, etc. To export them outside the country, an individual or the
organization need to apply for the license on the DGFT website. The additional licenses are
primarily given to the ‘restricted’ items. The Directorate General of Foreign Trade ensures that
the exporter can sell the restricted items only in the places where it is allowed.
Globalization is playing a crucial role in every country. In India, it has been a significant part of
the development and to maintain foreign relations with all the other countries. The incorporation
of DGFT was made to promote such foreign relations and trade. Promoting foreign exchange
helps India grow and expand its business venture all across the world by fostering foreign
exchange. Foreign trade relation boosts the economy of the respective countries. It facilitates the
global growth and also helps countries that are not developed.
Control DEPB Rates
DEPB stands for Duty Entitlement Pass Book. It is an export incentive scheme which is
authorized by the Government of India. DEPB Rates are given to the exporters of India. It allows
the import of any restricted item like gold accessories, minerals, etc. It is a way of providing a
grant of duty against the export credit. DEP allows the exporter to apply for any credit as a
specified percentage of the value of exports into a convertible currently. But at the same time, it
is necessary to control the DEPB rates, as an overflow of such credits can imbalance the export-
import inventories and affect the homegrown and foreign marketplace. For that, the Directorate
General of Foreign Trade is the authority who takes care of all these things.
DGFT facilitates a regulated transit of goods. In most cases, when goods are packed and shipped
for delivery to the respective countries and do not reach the destination. In such scenarios, DGFT
comes to the rescue. It addresses feedback, proper delivery of the goods, resolving the issues that
are hampering the trade.
The Directorate General of Foreign Trade is one body but facilitates several importers and
exporters simultaneously. The roles and responsibilities of DGFT are not just restricted to
the above-mentioned points. It also plays a significant part in the government for all the internal
affairs of foreign trade.