DGFT full form is Directorate General of Foreign Trade. It refers to an attached office of the Ministry of Commerce and Industry, Government of India. It is responsible for framing and implementing the Foreign Trade Policy of the government.
Businesses that want to commence import or export operations for goods/services need to apply for Import Export Code (IEC) from the DGFT. In this blog post, we shall discuss what DGFT is and shed some light on its key functions.
DGFT full form is Directorate General of Foreign Trade. It is an attached office of the Ministry of Commerce and Industry that is headquartered in New Delhi. It is responsible for formulating and implementing Foreign Trade Policy aimed at promoting India's exports. DGFT is headed by the Director General of Foreign Trade. Currently, DGFT Director is Mr. Shri Lav Agarwal (IAS).
The Directorate General of Foreign Trade (DGFT) was established in 1991, and replaced the Chief Controller of Imports and Exports. It issues scrips and import/export authorizations to importers/exporters and monitors their obligations and comp through a network comprising 24 regional offices, including in Mumbai, Kolkata, Chennai, Delhi and Bengaluru. DGFT headquarters and many of its regional offices are certified under ISO 9000:2008 certification.
All regional offices of Directorate assist exporters by providing information on developments in international trade, including World Trade Organization agreements, rules of origin and anti-dumping issues. This support aids the exporters in making well informed decisions regarding imports and exports in an ever-changing international environment.
The main functions of DGFT can be understood with the help of the following points:
Regulation of Goods/Services Meant for Export/Import: One of the main functions of the DGFT is to regulate goods and services exported from and imported into India. For this purpose, it imposes certain restrictions, prohibitions or sets forth certain conditions on import/export of specific goods. This allows the DGFT to protect domestic industries, ensure environmental conservation and address national security concerns.
Formulation & Implementation of Foreign Trade Policy: In the formulation and execution of Foreign Trade Policy, the DGFT plays an indispensable role. It helps the central government to design and update this policy from time to time and ensures that it is in alignment with the national economic goals as well as the present trade dynamics.
Export Promotion Through Schemes: The Directorate General of Foreign Trade promotes export of Indian goods through various schemes. Two of the most famous ones are Advance Authorisation Scheme and Export Promotion Capital Goods Scheme. The Advance Authorisation Scheme enables duty free import of raw materials required to manufacture certain export goods. The Export Promotion Capital Goods Scheme allows the exporters to import/procure certain goods like machinery, equipment, etc., at zero customs duty.
Management of HSN Codes: Another key function of the DGFT is to maintain and manage the Indian Trade Clarification based on Harmonized System of Nomenclature (HSN codes) and update it whenever necessary. This system refers to an 8-digit standardised code system that is maintained by DGFT in India and is used to classify export and import goods. The HSN codes are numerical codes that are essential for classification of goods in international trade.
Grant of IEC Registration to Exports & Importers: DGFT is the concerned authority for issuing the IEC registration to the eligible exporters and importers through the official DGFT portal. Without this registration, exporting goods from or importing goods into India is not possible, unless specifically exempt from this requirement.
You May Also Read: Import Export Code Exemption: Eligible Persons and Businesses
The full form of DGFT is Directorate General of Foreign Trade. It is an attached office of the Ministry of Commerce and Industry. It is headed by the Director General of Foreign Trade. Currently, this post is being served by IAS Officer Mr. Shri Lav Agarwal. Some of the important responsibilities and functions of the DGFT include issuing IEC code to exporters and importers, formulating and implementing foreign trade policy, maintaining the Indian Trade Clarification based on Harmonized System of Nomenclature and promoting export through schemes like Advance Authorisation and Export Promotion Capital Goods Scheme.
If you want to start an import or export business, don’t forget to obtain an IEC license from the DGFT. For professional guidance and support in applying for and obtaining this license, you can connect with our business compliance consultants at Registrationwala.
Q1. What is DGFT full form?
A. DGFT full form is Directorate General of Foreign Trade.
Q2. Under which government ministry does DGFT fall?
A. DGFT falls under the Ministry of Commerce and Industry, Government of India.
Q3. What is DGFT full form in Hindi?
A. DGFT full form in Hindi is विदेश व्यापार महानिदेशालय (Directorate General of Foreign Trade).
Q4. When was DGFT set up by the Indian government?
A. The Indian government established the DGFT in 1991. It was formed to replace the Chief Controller of Imports & Exports.
Q5. Which government agency is responsible for implementing Foreign Trade Policy of India?
A. The Directorate General of Foreign Trade is the concerned government agency that’s responsible for implementation of the Foreign Trade Policy of the country.
Q6. Where are the headquarters of DGFT?
A. The headquarters of DGFT are located in New Delhi. Here’s the DGFT headquarters address: Vanijya Bhawan, 'A' Wing, 16 Akbar Road, New Delhi - 110011.
Q7. What is Indian Trade Clarification based on the Harmonized System of Nomenclature?
A. Indian Trade Classification based on Harmonised System refers to an 8-digit standardised code system that is maintained by DGFT in India and is used to classify export and import goods.
Q8. Which government agency is responsible for managing and updating the Indian Trade Clarification based on the Harmonized System of Nomenclature?
A. The Directorate General of Foreign Trade is the concerned government agency responsible for managing and updating the Indian Trade Clarification based on the Harmonized System of Nomenclature.
Q9. Who is the DGFT Director right now?
A. Currently, DGFT Director is Mr. Shri Lav Agarwal (IAS).
Q10. Who heads the DGFT?
A. The Director General of Foreign Trade serves as the head of the DGFT.
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Disclaimer:- This blog post is for general informational purposes only. While the author has made every effort to ensure accuracy of the information provided in this post, the rules, schemes and facts might get changed or replaced in the future. Therefore, for the latest information, our readers are encouraged to verify through official government websites. |
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, finance and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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