Directorate General of foreign trade. It is an agency of the ministry of commerce and industry under the government of India. It is a body under the Ministry of Commerce and it is an industry of India. This agency is headed by the director-general of foreign trade. The directorate general of foreign trade is responsible for administrating laws regarding foreign investment and foreign trade in India. The role of this office is to facilitate, promote and regulate the export and import.
This agency is responsible to implement necessary laws, to issue export licenses, develop trade relationships with other nations and to introduce trade incentives along with keeping the country’s objectives of increasing exports in mind.
This agency has two types of office and these are Regional authority and zonal offices.
Now here in this article, we are heading towards important roles and functions of directorate general of foreign trade.
Important functions and roles of directorate general of foreign trade:
· It is responsible to implement EXIM Policy and foreign trade policy.
· It also implements foreign trade procedures.
· This agency is responsible to issue IEC code to exporters and importers.
· This agency documents and maintains the classification of ITC-HS codes.
· This is an agency that grants export licenses for restricted items.
· It also promotes trades.
· This is the agency that informs about goods that you can or cannot export freely under export Policy Schedule 2.
· It provides a platform for updating eBRC.
· It controls DEPB rates.
· It also regulates the transit of goods.
Implement EXIM Policy or foreign trade policy
It can be defined as a set of guidelines and instructions that are related to the import and export of goods that are developed by the directorate general of foreign trade. The main objective of this policy is to motivate exporters in the country and thus helps the country to increase exports and maintain a favorable balance of payments positions.
Directorate general of foreign trade
Implement foreign trade procedures
The directorate general of foreign trade formulates and announces foreign trade procedure and it needs to be followed by exporters and importers to implement the provision of foreign trade act and foreign trade policy. The main objective is to lay down simple EDI compatible procedures that you can easily understand and these are user-friendly for efficient execution of foreign trade in the nation.
Issue IEC Code to Exporter and importers
This code is a must for all import and export businesses in India. This code is a unique 10 digit registration code that is issued by the directorate general of foreign trade. This code will help you in tracking and managing the shipment of your exporter and importer. Nowadays this IEC code is integrated with PAN and only a single IEC code can be issued against one PAN.
Document and Maintain Classification of ITC-HS codes
These codes are based on the International Harmonized system of coding and it was adopted in India for facilitating foreign trade. In trading activities, Indian customs use 8 digit ITC HS code and these codes are divided into two schedules. Schedule 1 is for import activities while Schedule 2 is for export activities. The directorate general of foreign trade carries any changes or addition like changes in the description of the commodity, adding new codes, removing defunct codes and many more.
A platform for updating and viewing eBRC
Bank realization certificate or eBRC is issued by banks to exporters and thus they can claim benefits under various export promotion schemes under the foreign trade policy. The directorate general of foreign trade introduces eBRC modules to promote paperless trade. This scheme is for the bank to electronically transmit foreign exchange realization directly to the exporter’s account.
An exporter need to follow some steps for viewing his eBRC and here are these steps:
· First of all, you need to go to DGFT’s website and then select “View and print your eBRC”.
· Then to access the eBRC details, you need to enter your IEC code and IFSC code of the bank whose eBRC you wish to view and where your drawback amount or forex has been realized. After filling these details, you have to click on “Show details”.
· The website will show you a list of all eBRC uploaded by the bank.
· After this, you are allowed to download each eBRC by clicking on print.
We advise you to print 4 copies of each eBRCs as they might be not available later on because of constant server updations.
Inform about goods that can or cannot be exported freely under export Policy schedule 2
According to schedule 2- an export policy that is formulated by the directorate general of foreign trade, all goods other than those that are listed in the export licensing schedule along with its appendices are free exportable. All exports are free, only except when they are regulated by the path of any “Prohibition”, “Restriction” and “STE”.
Grant Export Licenses for restricted items.
All those items that are defined as restricted in the export policy, are permitted for export subjects to license that is granted by the directorate general of foreign trade. You can apply for a license for these items online on the website.
Promote Trade
This agency also plays an important role in launching several export promotion schemes like MEIS, Advance authorization schemes, SEIS, duty-free import authorization scheme, export promotion of capital goods scheme, export-oriented units scheme, deemed exports, etc. The procedure to apply for these schemes has been outlined under foreign trade procedure and all these schemes have been implemented under foreign trade policy.
Facilitate application for MEIS
The directorate general of foreign trade facilitates claims rewards under MEIS to exporters with the help of an online application system. You can fill the MEIS application online by using the digital signature with the concerned RA in form ANF 3A. You need to link relevant shipping bills and e-BRC in the application.
Control DEPB Rates
DEPB is an export incentive scheme that is regulated by the directorate general of foreign trade. Under it, the exporters are incentivized on the customs duty paid on import od goods like raw materials which will be further exported.
Regulate Transit of Goods
This agency regulates the transit of goods from or to India according to bilateral treaties in effect between India and other countries.
