The Directorate General of Foreign Trade (DGFT) plays several key roles in relation to Indian exports. DGFT administers various export promotion schemes to provide incentives to exporters, including duty drawback, export promotion capital goods scheme, advance license authorization, special economic zones, star export house status, chapter 3 incentives, and export under bond. DGFT is responsible for issuing licenses and permissions required for these schemes and monitoring export obligations. The document provides detailed descriptions of each incentive scheme administered by DGFT and the application procedures involved.

1. Roles of DGFT
By
Jignesh Babu Ajani

5. 5
SOURCE: REPORT BY FIRST TASK FORCE ON TRANSACTION COST IN
EXPORTS
(by Department of Commerce, Ministry of Commerce and Industry, Govt. of India)
Various Agencies involved in exports
DGFT EXCISE BANKS
CUSTOM
S
EPC CONCOR
ECGC
SHIPPIN
G LINE/
AIRLINE
PORT ICD/IFS
Get export credit
insurance
Get license for
benefit
under export
promotion scheme
Get
export
assistan
ce
Inland
transportatio
n
Pay/exempt
from Ex.
duty
Get Credit/
Guarantee
s
Pay duties/ clear
immigration
Intermediate
inland
storage
Port
procedures
Oversea
s
shipmen
t
Export
er

6.  Incentives Schemes from DGFT
1. Duty Drawback
2. Export Promotions of Capital Goods (EPCG)
3. Advance License
4. Special Economic Zone
5. Star Export House
6. Chapter -3 Incentives Schemes
7. Export Under Bond
8. Incremental Export Incentivision Schemes

7. 1.Duty Drawback
A. Incentive Given to Exporters for promoting Export
Shipments.
B. Customs and Central Excise Duty Drawback Rules, 1995
C.DBK Released by Custom Department (Within 15 Days -
180 Days)
D.Details in Practical Example with Shipping Bill Copy
E. Procedure of DBK
F. Queries Related DBK

8. 2. Export Promotion of Capital Goods
(EPCG)
A. Introduced in between 1992 -97
B. What is the Importance / Benefits of EPCG Schemes
C. Schemes for Manufacturer
D. EPCG License Structure (Duty Structure)
E. How to Apply for EPCG License
F. Required Documents for Application
G. Physical Inspection Requirements / Role of DGFT / Excise /
GST
H. Closure of Export Obligation for EPCG License

9. 3. Advance License Authorization
A. Introduced in between 2004-09 (2006)
B. What is the Importance / Benefits of Adv. Lic. Schemes
C. Issued for Exporters / Deemed Exporters / Invalidation
D. Advance License Structure (Duty Structure)
E. How to Apply for Advance License
F. Required Documents for Application
G. Closure of Export Obligation for Advance License

10. 4. Special Economic Zones
A. Introduced in 2000.
B. What is Special Economic Zones.
C. Benefits of SEZ.
 No Duties / No License /
 Used for Manufacturer / Trading / Services
 No Wastage Norms Required
 Full duty applicable on domestics sales.
 In House Custom Clearance
 Documents procedure will be very less.
 No routine Custom Clearance Requirements

11. 5. Star Export House
A. It’s a Status Symbol for Every Exporter.
B. They are allowed license/certificate/permissions and
Customs clearances for both imports and exports on self-
declaration basis.
C.Fixation of Input-Output norms on priority.
D.They are allowed exemption from compulsory negotiation of
documents through banks. The remittance, however, needs
to be received through banking channels.
E. They enjoy exemption from furnishing of Bank Guarantee in
schemes under the foreign trade policy.
F. Procedure for Application.

12. 6. Chapter -3 Incentives Schemes
A. Incentive on FOB Value of Export Goods
B. Earlier there were FMS, FPS, MLFPS, VKGUY
C.Now it’s Known as MEIS (Merchandise Exports from India
Scheme)
D. Earlier Served from India Scheme (SFIS) Now, Service
Exports From India Scheme (SEIS).
E. Procedure for the Application.

13. 7. Export Under Bond
A. Procedure for Excise Clearance under Bond / Letter
Undertaking.
B. There is no PLA (Personal Ledger Account) as no duty is
paid.
C.The manufacturer exporter executes Bond / Letter of
Undertaking to the amount equivalent to the excise duty.
D.UT-1 Bond and CT-1 Bond
E. Requirements of Documents.
F. How to obtain LUT and BOND.

14. 8. Incremental Export Incentivision Schemes (IEIS)
A. Incremental Procedure for Exporter.
B. How to obtain IEIS License from DGFT.
C.Structure for IEIS License.
D.Procedure for Application.
E. How to Obtain License.

20. THANK YOU