India’s economy is growing fast when it comes to exporting goods. According to the Ministry of Commerce and Industry portal, India’s export trade from April to February 2022-23 grew with a whopping USD 405.94 billion. That’s a lot of stuff being sold overseas! To keep the export wheels turning smoothly, DGFT does a bunch of important things. It issues special licenses to exporters, like permits allowing them to export their products. It also gives out cool incentives and benefits to encourage businesses to export more. These could be export subsidies and duty drawbacks, making selling stuff abroad more profitable.DGFT has its main office in New Delhi, but it’s spread out across the country to be closer to businesses. Thirty-five regional offices nationwide provide assistance and support in dgft export. So, whether you’re in New Delhi or any other part of India, DGFT is there to help you with your exporting journey.
What are the services dgft provides to the exporters?
- IEC registration and profile management
IEC registration involves obtaining a unique 10-digit Import-Export Code, while profile management allows exporters to update their information and access export incentives.
- DFIA
It is an export promotion scheme by DGFT in India. It enables eligible exporters to import inputs or raw materials without paying customs duties. DFIA authorizations are issued, allowing duty-free imports, subject to fulfilling a dgft export obligation within a specified time frame. DFIA can be used with the EPCG scheme and promote manufacturing and export-oriented industries.
- Online E-com application
It refers to applying for trade-related services and licenses through an online platform. DGFT in India provides this convenient and efficient way for businesses to submit applications for services like IEC registration, export declarations, licenses, and export incentives. The online process allows document submission, tracking application status, and online payment. It simplifies the process and provides transparency for businesses involved in foreign trade.
- The EPCG scheme
This scheme by DGFT in India promotes exports by providing duty concessions on importing capital goods. Eligible exporters can import machinery, equipment, and technology at concessional customs duties. They must fulfil a dgft export obligation within a specified time frame. The authorities issue EPCG authorization and monitor exporters for compliance. The scheme encourages modernization and competitiveness in export industries.
- The Merchandise or Service Exports Scheme
It is a government policy in India that promotes exports of goods and services. It provides incentives and benefits to exporters, such as Duty Credit Scrips for merchandise exports and duty-free import of capital goods for service exports. Export Promotion Councils play a role in implementing the scheme. Compliance with guidelines and documentation is necessary to avail of the scheme’s benefits, which operate within the framework of the Foreign Trade Policy.
- The Import-Export Management system
It streamlines and manages the processes involved in importing and exporting goods and services. It focuses on documentation, compliance, procedures, logistics, risk management, financing, and market intelligence. The system ensures adherence to trade regulations, efficient supply chain management, and effective market research for successful import and dgft export operations.
- The DGFT Helpdesk
This service provided by the Directorate General of Foreign Trade offers support and guidance to exporters, importers, and stakeholders in foreign trade. It assists with information, query resolution, and grievance redressal related to trade policies, regulations, documentation, and online systems. The service aims to provide timely and effective assistance through various communication channels.
What are the benefits exporters get with registration for DGFT Services?
- Access to Export Promotion Schemes
DGFT registration offers exporters access to a range of export promotion schemes by the Indian government. These schemes, including MEIS, EPCG, and SEIS, aim to incentivize and support exporters in boosting their competitiveness and expanding their exports. Other schemes like DFIA, Advance Authorization, and EOU provide additional benefits to exporters. To access these schemes, exporters must register with the dgft export, obtain an IEC, and comply with the prescribed procedures. These initiatives are crucial in encouraging and supporting Indian exporters, enhancing their global market presence, and boosting exports.
- Duty Exemption and Refunds
Registered exporters can claim duty exemptions or refunds under specific export promotion schemes. These schemes aim to reduce the tax burden on exporters, enhancing their competitiveness globally. By availing these benefits, exporters can save costs and improve profitability. Proper documentation and compliance with procedures are necessary to claim these benefits. Duty exemptions or refunds incentivize exporters to engage in international trade, explore new markets, and expand their export activities. Overall, these schemes play a crucial role in supporting exporters, boosting their competitiveness, and contributing to the growth of the export sector and the economy.
- Lifetime Validity
IEC registration is a permanent and lifetime valid registration for importers and exporters. It does not require regular renewal and can be modified online when necessary. To ensure a smooth process, exporters may seek a consultant’s assistance for the best service. The IEC registration eliminates frequent updates and provides a convenient way to make changes through the online portal. With a consultant’s guidance, exporters can navigate the registration process more efficiently and obtain the desired outcomes. IEC registration offers a hassle-free and permanent solution for importers and exporters, simplifying their operations and allowing them to focus on their business activities.
- Access to Restricted Items
DGFT registration allows exporters to obtain licenses for exporting restricted items, ensuring compliance with laws and regulations. Exporting such items involves scrutiny, compliance measures, and adherence to guidelines to protect national security, prevent technology proliferation, and comply with international agreements. Exporters must familiarize themselves with regulations, maintain documentation, and fulfil obligations. DGFT registration facilitates this process, enabling exporters to navigate requirements and obtain necessary clearances. It ensures lawful trade, mitigates risks and upholds national security and international obligations.
- Reduces illegal business in export
DGFT registration plays a crucial role in reducing the risk of illegal transportation. By ensuring the proper documentation and obtaining an IEC, the registration process helps eliminate unauthorized or unlawful transportation of goods. The centralized nature of the registration process enables professionals to supervise and enhance the administration of transactions, especially for cross-border businesses. This oversight helps maintain transparency, prevent illegal activities, and promote compliance with regulations.
Summary – DGFT registration offers valuable services to exporters in India, including access to dgft export promotion schemes, duty exemptions, lifetime validity of IEC registration, authorization for exporting restricted items, and reduction of illegal transportation risks. It supports businesses in reaching global markets, such as through the Amazon Global Selling program. DGFT’s services, combined with initiatives like Amazon Global Selling, foster a conducive environment for exporters, promote economic growth, and strengthen India’s position in international trade.