DGFT & Foreign Trade Policy

DGFT – Directorate General of Foreign Trade: Empowering India’s International Trade

The Directorate General of Foreign Trade (DGFT) plays a pivotal role in shaping and regulating India’s international trade. As a policy-making, licensing, and compliance body under the Ministry of Commerce and Industry, the DGFT facilitates exports and imports in India through regulatory frameworks, incentives, and trade facilitation tools.

Awat Logistics, as a trusted logistics and compliance partner, helps businesses navigate the complexities of DGFT registrations, schemes, and regulations, ensuring seamless and compliant cross-border trade.

🌐 What is DGFT?

The DGFT (Directorate General of Foreign Trade) is the nodal agency responsible for formulating and implementing the Foreign Trade Policy (FTP) of India. Its primary objective is to promote exports, regulate imports, and ensure trade compliance in accordance with the national interest.

DGFT’s responsibilities include:

• Issuing the Import Export Code (IEC)
• Managing schemes like Advance Authorization, EPCG, RoDTEP, and MEIS/SEIS
• Granting licenses for restricted or controlled items
• Handling export promotion councils and export data
• Coordinating with customs, RBI, SEZ, and other departments

🏛️ Key Functions of DGFT

1. Formulating Foreign Trade Policy

The DGFT drafts India’s Foreign Trade Policy, which is reviewed every 5 years. The policy outlines:

• Export promotion schemes
• Import restrictions or licensing norms
• Trade facilitation and compliance framework
• Duty exemption or remission benefits

The current policy (2023) emphasizes digital trade facilitation, paperless licensing, and MSME empowerment.

2. Issuing IEC (Import Export Code)

No import or export activity can be legally undertaken in India without obtaining an IEC code from DGFT.

IEC Key Points:

• A 10-digit unique identification number
• One-time registration; no renewal required
• Mandatory for customs clearance
• Linked to PAN and GSTIN

Awat Logistics helps businesses obtain IEC codes quickly and accurately through the DGFT portal.

3. Administering Export Incentive Schemes

DGFT operates major schemes to boost exports from India:

a. RoDTEP (Remission of Duties and Taxes on Exported Products)

• Replaces MEIS
• Refunds of embedded taxes are not rebated under GST
• Automated via shipping bills

b. Advance Authorization

• Allows duty-free import of inputs used in export products
• Export obligation based on value or quantity

c. EPCG (Export Promotion Capital Goods)

• Allows duty-free import of capital goods
• Export obligation linked to turnover or a fixed period

d. SEIS (Service Exports from India Scheme)

• Incentivizes foreign exchange earning services (phasing out)

Awat Logistics provides consulting and documentation support for DGFT schemes to maximize duty savings.

4. Import Licensing

While many goods are freely importable, some require DGFT-issued licenses:

• Restricted, canalized, or prohibited items
• Dual-use or defense-grade products
• Capital goods under EPCG

We assist.

5. Export Obligation Monitoring

DGFT monitors exporters under EPCG, Advance Authorization, and other schemes to ensure compliance.

Businesses must:

• Maintain detailed shipping and invoice records
• File Annual Performance Reports (APR)
• Fulfill export obligations within the stipulated time
• Pay duty with interest in case of shortfall

Awat Logistics offers a full suite of post-licensing compliance, redemption, and closure services.

🖥️ DGFT Digital Services

DGFT has fully digitized its services under the “Trade Facilitation through Paperless Processing” initiative.

Available services:

• IEC application and modification
• License issuance (EPCG, AA, RoDTEP scripts)
• Import authorization requests
• Duty credit scrip management
• Online grievance redressal via Contact@DGFT

We help clients create, manage, and integrate their DGFT profiles with ICEGATE, GST, and banking systems for automated compliance.

🧾 DGFT and Customs Integration

DGFT works closely with:

• CBIC (Customs): For linking IEC, shipping bills, and RoDTEP
• ICEGATE: For port-level data exchange
• RBI/AD Banks: For foreign exchange realization
• GSTN: For tax linkage and refunds

This multi-agency integration ensures a 360° trade compliance ecosystem.

✅ Benefits of DGFT Registration & Compliance

📊 DGFT and Indian Trade Growth

As of 2023–24:

• India’s merchandise exports crossed USD 450 billion
• Over 7 lakh IEC holders are active
• DGFT processed over 15 lakh digital license applications in FY 2023

DGFT plays a pivotal role in achieving India’s $2 trillion export target by 2030.

🧠 Common DGFT Challenges & How Awat Logistics Helps

📌 Case Study: Fast-Tracking DGFT Compliance

Client: Textile exporter from Ludhiana
Challenge: Missed EPCG export obligation deadlines; at risk of duty recovery

• Awat Logistics conducted an EO analysis
• Filed late redemption with penalty condonation
• Coordinated with the DGFT RA office for license closure
  • Result: ₹27 lakhs in duty liability waived
    

🤝 Why Choose Awat Logistics for DGFT Support?

✅ IEC, EPCG, RoDTEP, AA, and import license expertise

✅ Decades of experience in customs and trade policy

✅ Local support in Delhi, Mumbai, and PAN-India

✅ Quick turnaround and 100% documentation accuracy

✅ Strong liaison with DGFT RA offices and customs houses

Whether you’re an MSME or a large manufacturer, our DGFT consulting services simplify compliance, reduce costs, and improve operational efficiency.

🏁 Conclusion

The DGFT plays a foundational role in enabling India’s foreign trade by offering policy clarity, incentive access, and digital trade facilitation. While its services are empowering, navigating DGFT schemes and compliance demands experience, precision, and timely execution.

Awat Logistics ensures that your journey through India’s international trade ecosystem is smooth, compliant, and profitable—from IEC registration to post-export obligation closures.