ROLE OF DGFT IN
FOREIGN TRADE POLICY
DIRECTOR GENERAL OF FOREIGN TRADE
DGFT or Director General of Foreign Trade is a government
organization in India responsible for the formulation &
implementation of Exim Policy, Guidelines and Principles for
Indian Importers and Indian Exporters of the country.
Before 1991, DGFT was known as the Chief Controller of
Imports & Exports (CCI&E)
It is an attached office of the Department of Commerce,
Ministry of Commerce & Industry. It’s headquartered in
Udyog Bhavan, New Delhi.
Officials of DGFT works in close coordination with other
related economic offices like Customs
Commissionerates, Central Excise authorities, DRI authorities
and Enforcement Directorate
DGFT plays a very important
role in the development of
trading relations with various
other nations & thus helps in
improving not only the economic
growth but also provides a
certain impetus needed in the
For promoting exports & imports
it established Four Zonal Offices
at Delhi, Mumbai, Kolkata &
Chennai. In addition to that
there are 35 Regional Authorities
spread across the country.
ROLEs OF DGFT
Policy Research & Analysis
To advise the Government on Policy
measures in the light of emerging national
and international economic scenarios
Formulation & Regular Updatation of new
codes in ITC(HS) Codes. It is the governing
body of ITC(HS) & IEC codes.
DGFT sets and controls SION i.e. standard
ITC(HS) is Indian Trade Clarification for import-export
It basically describes the rules and guidelines related to
export & import policies.
Schedule I describes the rules and regulation related to
Schedule II describes the rules and regulation related
to export policies.
Indian Customs uses an eight digit ITC(HS) Codes to suit
the national trade requirements.
It is also used by Importers & Exporters to log into their
account & check out new rules or changes regarding
their area of business.
To review export performance of various sectors, identify
To examine the existing institutional framework, policy
instruments and procedures for imports & exports.
Suggest practical industry specific measures for optimum
use of such schemes.
Regulate Transit of Goods in accordance with Bilateral
Grants “Importer Exporter Code ” IEC No. which is
mandatory to import or export in India.
Maintains SCOMET List.
These are certain products which comes in the list of Special
Chemicals, Organisms, Materials, Equipment and Technologies
India’s SCOMET list includes eight categories of sensitive items
that could be used for both civilian and military purposes. The
export of all the items on the list is strictly regulated by the DGFT
The list includes toxic chemical agents, micro-organisms, toxins,
aerospace systems, information technology, nuclear materials,
nuclear-related other materials, equipments and technology”.
To examine issues
which are considered
promotion of India’s
foreign trade, and to
Indian goods and
Assistance to states for infrastructure
development for exports.
Recognising Export Excellence Towns, with
threshold limit of Rs 250 Cr & providing special
facilities to such towns.
Development of Agri Export Zones (AEZ) &
Handicraft SEZs shall be established which
would procure products from the cottage sector
and do the finishing for exports.
Scheme such “Vishesh Krishi and Gram Udyog
Yojana” for promoting export of
fruits,Vegetables, Flowers, Minor Forest produce,
Dairy,Poultry and their value added products
Financial assistance to export promotion councils, industry and
trade associations, agencies of State Govt, Indian Commercial
mission abroad and other persons as Market Access initiative.
Financial assistance for marketing development & meeting
the legal expenses for Trade related matters.
Recognising efforts by service sector & exporters who
contribute substantially to the export kitty & providing them
Providing duty free imports of raw materials consumables etc.
meant to be used in exports.
Developing Export Oriented Units, Special Economic Zones,
Technology parks and Bio-Tech parks for for imports of capital
goods & services at concessional rate of customs duty.
AdjudicAtion & RedRessAl
If any question or doubt arises in respect of any
provision in Foreign Trade Policy, or with Issuance of
licence/ certificate/permission or regarding the
classification of any item in the ITC(HS) or DEPB
Rate; it shall be referred to the DGFT whose decision
thereon shall be final and binding.
DGFT also deals with the quality complaints of the
A Grievance Redressal Mechanism is established in
order to avoid the need to litigation by aggrieved