2022-05-11 11:40:31

Directorate General OF Foreign Trade

Introduction

DGFT means Directorate General of Foreign Trade. The import and export business in which is mandatory to the key of the import-export code of business. No person shall make any import or export without an IEC Number which is granted by the DGFT. The IEC shall be required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies for the import and export of services or technology. For any firm obtaining an IEC number Like Proprietorship, Partnership, LLP, Limited Company, etc. GST, the IEC number is the same as the PAN number of the firm. DGFT would be issued separately from IEC.

Functions of DGFT

There are many functions of DGFT but some functions are given below:

The main function of DGFT is to Implement the foreign trade policy and EXIM policy of the government.
It is providing a complete database of all importers and exporters in India.
It Granting the Exporter Importer Code (EIC) Number to exporters and importers in India. The EIC Number is a 10digit number that is needed for the import and export of business.
It has the authority to prohibit, restrict, and regulate the import and export of Business.
Regulating and permitting the transit of goods from India to adjacent countries according to the bilateral trade agreements.
Promoting trade between India and her neighboring countries.
Granting permission of free export wherever necessary.
It plays a vital role in controlling DEPB rates. DEPB means Duty Entitlement Pass Book. Its Scheme is an export incentive scheme of the GOI given to exporters.
Handling quality complaints of the foreign buyers of Indian export products.
Formulating or adding new codes in the ITC-HS Codes. ITC-HS codes mean Indian Trade Clarification based on the Harmonized System of Coding. These codes are given to import/export the products.

Implement Foreign Trade Procedures

DGFT formulates Foreign Trade Procedures which are to be followed by an exporter or importer for the purpose of implementing provisions under the Foreign Trade Act and Foreign Trade Policy. The objective of DGFT is to lay down simple EDI-compatible procedures which are easy to understand and execution of foreign trade in the country.

IEC Code

Importer Exporter Code (IEC) must be obtained by all exporters and importers which are essential for the import or export of the commodities. IEC is valid for the lifetime of the individual or entity, and need not be renewed. Processing of IEC applications is a major task undertaken by the DGFT Department.

Document and Classifications of ITC HS Codes

ITC HS Codes means International Harmonized System of Coding and it was adopted by India for facilitating foreign trade. Directorate of Foreign Trade Policy Provides an 8-digit ITC HS code used by Indian Customs for trading activities. ITC HS Codes are divided into two schedules i.e. Schedule 1 and schedule 2.
Schedule 1 is for Import Activities and Schedule 2 is for export activities. Any changes, or adding in descriptions of commodities, removing defunct codes, adding new codes, etc. are done by DGFT.

An exporter can follow the following steps for viewing his eBRC:-

A list of all eBRCs uploaded by that bank Go to DGFT's website and select "View and Print your eBRC"
If you access the eBRC details than you have to enter your IEC Code and IFSC Code of the bank anything to view where your drawback amount or forex has been realized. Once will be shown.
You can download eBRC by clicking on print.

DGFT(Amendment), 2022

The Foreign Trade policy is amended on 09-05-2022. According to section 5 of Foreign Trade Amended Policy,1992, the Central Government do some amendments but some amendments are given following related to the export of Guar Gum:

Guar Gum Export to European Union and the UK, originating in or consigned from India and intended for animal or human consumption, allowed subject to the issue of the official certificate by the Ministry of Commerce and Industry under the government of India.
The original analytical report of testing of Pentachlorophenol issued by any of the Vimta Labs, Hyderabad, and export Inspection Agency Lab, Chennai certified that product does not contain more than 0.01 mg per KG of the PCP on sampling done by the authorized representative of the competent authority.
The original analytical report of testing of ETO: Ethylene Oxide and the sum of chloroethane expressed as the ethylene oxide issued by the VIMTA Labs, Hyderabad, And EIA Lab, Mumbai certifying that products that do not contain more than 0.02 mg per Kg of ETO on sampling done by the authorized representative of the competent authority.
The Export of Guar Gum to the European Union and the UK will now be allowed to the issuance of an Official Certificate in Place of a Health Certificate with immediate effect after the Amendment of Foreign Trade Policy, 2022.

Conclusion

It concluded that DGFT is an organization and attached office of the Ministry of Commerce and Industry and is headed by the Director-General of Foreign Trade. It has been essential for the regulation and promotion of foreign trade. The main objective of the DGFT is to increase the import and export of business. It is providing a complete database of all importers and exporters in India.

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