What is DGFT and How to Get Started
DGFT: Your Gateway to Importing and Exporting in India
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, is the nerve center of India's foreign trade regulations. If you're venturing into importing or exporting goods in India, understanding the DGFT and its procedures is crucial. This guide simplifies the process of getting started with DGFT, including obtaining import/export licenses (online and offline).
What Does DGFT Do?
The DGFT plays a pivotal role in:
Formulating Foreign Trade Policy: The DGFT establishes India's foreign trade policies, aiming to promote exports and maintain a healthy balance of trade. Issuing Licenses: It regulates imports and exports through a system of licenses. Certain commodities require specific licenses (like Scomet for controlled items) issued by the DGFT. Promoting Exports: The DGFT offers various schemes and incentives to encourage Indian businesses to export their products globally.
Do You Need a DGFT License?
Freely Importable/Exportable Goods: Many goods can be imported or exported freely without DGFT licenses.
Restricted Items: Certain categories require licenses or specific permissions for import/export. These can be due to safety concerns, environmental protection, or other strategic reasons.
The DGFT website provides a detailed schedule of ITC (HS) classifications to help you identify if your intended import or export requires a license (https://www.dgft.gov.in/).
Getting Started with DGFT
IEC Registration:
The first step is to obtain an Import Export Code (IEC) issued by the DGFT. You can apply online through the DGFT website (https://www.dgft.gov.in/). The IEC serves as your unique identification for import/export activities.
License Requirement Check:
Carefully research the ITC (HS) classification of your intended import/export items on the DGFT website. This will determine if a license is mandatory.
License Application (if required):
If a license is necessary, the DGFT website offers online application options for various licenses (like Advance Authorization for duty-free import of inputs for export products). You can download and submit the relevant application forms online with supporting documents.
Offline Process:
An alternative to the online process involves submitting the application forms and documents physically at your nearest DGFT regional office.
Final Thoughts
India's overseas trade is significantly streamlined by the DGFT. You may guarantee a seamless import/export process for your company by being aware of its features and protocols. Recall that the DGFT website is a great source of information about licenses, classifications, and other aspects of the trade. Do not hesitate to use the DGFT's resources as you begin your import/export journey and, if necessary, seek professional advice.