GLOBAL SELLING BLOG

What is the Directorate General of Foreign Trade (DGFT)? Know meaning, role, services, and functions

The Directorate General of Foreign Trade (DGFT) is the regulator of export and import in India. Find out about its role, functions, and objectives in the blog.

The Directorate General of Foreign Trade (DGFT) is a key government body that manages and promotes India’s foreign trade. It is responsible for issuing licenses, implementing the Foreign Trade Policy (FTP), and simplifying procedures for exporters and importers.

Whether you’re a first-time exporter or an established trader, understanding the role and functions of DGFT will help you ensure smooth, compliant international trade operations. In this blog, learn what DGFT is, its services, key functions, and how it supports Indian exporters and importers.

What is the Directorate General of Foreign Trade (DGFT)?

The Directorate General of Foreign Trade (DGFT) is an agency of the Ministry of Commerce and Industry of the Government of India. It is responsible for administering laws regarding foreign trade. Established to promote and regulate India’s foreign trade, DGFT formulates the Foreign Trade Policy (FTP) and ensures its implementation across the country. ¹

DGFT operates through a network of 24 regional offices, known as Regional Authorities (RAs), located in major cities across India. These offices facilitate trade by issuing licenses, certificates, and providing guidance to exporters and importers.²

What is the DGFT Portal?

The DGFT portal is an integrated online platform designed to streamline foreign trade operations in India. It offers a range of services, such as applications for various licenses, and access to trade-related information. The DGFT portal offers various services, such as managing IEC application and other export-import licenses, monitoring the status of applications, learning about various government schemes and incentives, and accessing support for queries related to foreign trade.³

Services offered by DGFT

DGFT provides a suite of services to facilitate and regulate foreign trade in India. These services include:

Importer Exporter Code (IEC) issuance:

Importer Exporter Code (IEC) is a 10-digit business identification number allotted to an importer or exporter by the Directorate General of Foreign Trade (DGFT). It is issued based on the Permanent Account Number (PAN) of a business.

Export facilitation schemes:

● Advance Authorization scheme application: Advance authorization scheme allows duty-free import of inputs for export production.

● Export promotion capital goods (EPCG) scheme application: EPCG scheme enables import of capital goods at zero customs duty for export production.

Incentive schemes for exporters:

● Merchandise exports from India scheme (MEIS): MEIS scheme provides incentives to exporters to offset infrastructural inefficiencies.

● Service exports from India scheme (SEIS): SEIS scheme offers rewards to service providers of notified services.

● Transport and marketing assistance (TMA): TMA scheme assists exporters with transportation and marketing costs.

Electronic Bank Realization Certificate

Am electronic Bank Realization Certificate (eBRC) is a document issued by a bank that confirms that an exporter has received payment from the importer for the exported goods. This certificate act as legal proof of payment and export, and can be used by exporters to claim benefits of various schemes under the Foreign Trade Policy.⁴

Helpdesk services:

The DGFT provides a dedicated helpdesk to assist exporters with trade-related queries, technical issues on the portal, and clarifications on policy matters.⁵

Functions of DGFT

DGFT has multiple functions that are integral to the regulation and promotion of India’s international trade landscape. These include:

Regulating foreign trade:

The DGFT is responsible for regulating imports and exports. This includes imposing restrictions, prohibitions, or specific conditions on the import or export of certain goods to safeguard domestic industries, ensuring environmental protection, or addressing national security concerns.

Promoting exports:

To enhance India’s export competitiveness in the global market, the DGFT implements various export promotion schemes, simplifies trade procedures, and works towards reducing transaction costs for exporters.

Issuing licenses and authorizations:

A significant operational function is the processing of applications and the granting of necessary licenses, foreign trade registrations (like IEC), and permissions required for undertaking import and export activities.

Managing HS codes

DGFT manages and updates the Indian Trade Clarification of the Harmonized System of Nomenclature (HSN codes). These are numerical codes that classify goods in international trade.

Formulating and implementing policy:

The DGFT plays a crucial, advisory, and executional role in the formulation of India’s Foreign Trade Policy. It ensures that the policy is aligned with national economic goals and current global trade dynamics and then takes responsibility for its effective implementation across the country.⁶

Role of DGFT in import and export

DGFT plays a vital role in facilitating India’s import and export activities. Its role includes:

● Issuance of licenses: Grants licenses for the import and export of goods, ensuring compliance with trade regulations.

● Export promotion: Implements schemes like MEIS and SEIS to incentivize exports.

● Trade regulation: Monitors trade activities to ensure high standards of security and authenticity .

● Policy implementation: Ensures effective execution of the Foreign Trade Policy across the country.⁷

Objectives of DGFT

The Directorate General of Foreign Trade operates with several key objectives aimed at strengthening India’s position in the global trade arena. Some of the objectives are:

● To boost India’s economic growth by helping businesses access global markets.

● To position India as a strong and influential player in international trade, in line with its economic potential.

● To simplify, streamline, and digitize trade processes, thereby enhancing the ease of doing business for importers and exporters.

● To align India’s foreign trade with national economic goals and international trade commitments.

● To ensure the Foreign Trade Policy is implemented effectively so that its benefits reach the intended stakeholders.⁸

Recent updates related from DGFT

Here are some recent key developments from the Directorate General of Foreign Trade:

• Amendment in provisions for textile and chemical products in Foreign Trade Policy, 2023: A new provision that allows certain importers to bring in goods that are otherwise restricted under Quality Control Orders (QCOs) has been introduced.

• Amendment in import policy of synthetic knitted fabrics: The import policy condition for synthetic knitted fabrics under Chapter 60 of the ITC (HS), 2022 has been amended.

• Revision of Export Policy for Wheat Flour: The export policy for wheat flour has been revised, impacting export procedures and requirements.

• Introduction of New Online Module for Advance Authorization: A new online module for Advance Authorization applications has been launched to streamline the application process.

• Implementation of Electronic Certificate of Origin (e-CoO): DGFT has implemented the electronic issuance of Certificate of Origin to facilitate ease of doing business.⁹

What is a DGFT digital signature certificate?

The Digital Signature Certificate (DSC) is used on the DGFT website to verify the identity of exporters and secure online documents. It is mandatory for all electronic documents uploaded on its website, ensuring both convenience and data privacy.

Only Class 2 or Class 3 DSCs issued by CCA-authorized agencies are accepted. Any exporter with a valid IEC and supporting documents can apply for a DSC to file or apply for any documents on the DGFT portal.¹⁰

How does DGFT regulate exports from India?

1. Foreign trade procedures

DGFT designs and implements procedures under the Foreign Trade Policy (FTP) to simplify and digitize trade operations, making it easier for exporters to conduct international business.

2. Importer Exporter Code

DGFT issues the 10-digit IEC, a mandatory registration for importers and exporters. The application is fully online and linked to the applicant’s PAN.

3. EXIM Policy/Foreign Trade Policy

The DGFT is responsible for drafting and implementing India’s Foreign Trade Policy (also known as the EXIM Policy) under the Foreign Trade (Development and Regulation) Act, 1992. Announced by the Ministry of Commerce and Industry, the FTP outlines the country’s export-import regulations and incentives and is typically revised every five years.

4. ITC (Indian Trade Clarification) HS Codes

India uses ITC-HS codes to classify goods for import and export Schedule 1 covers import items, while Schedule 2 lists export items. DGFT has the authority to modify these schedules and update commodity descriptions as needed.

5. Export Licenses

Exports of restricted items require a license from DGFT. Most goods like textiles, home accessories, handicrafts, leather goods and more typically do not require extra export licenses and can be easily exported.

6. Trade promotion

DGFT runs various export promotion schemes under Foreign Trade Policy, such as the Advance Authorization scheme, Duty Free Import Authorization scheme, and Deemed Exports. The authority has also simplified and largely digitized export-import procedures to promote foreign trade.

7. Quality complaints and trade disputes

To resolve concerns of exporters, DGFT addresses feedback, suggestions and any trade-related issue through quality complaints and trade disputes . It handles both complaints received from foreign buyers for Indian exporters and complaints of Indian importers against foreign suppliers through this platform.

Amazon Global Selling: Easy e-commerce exports and hassle-free shipping

If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.

Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.

Guide to export with Amazon

Frequently Asked Questions

1. Who can register with DGFT?

Any individual or business entity engaged in import or export activities in India must register with DGFT to obtain an Importer Exporter Code (IEC).

2. What is a DGFT license?

A DGFT license is an official authorization required for importing or exporting specific goods. It ensures compliance with India’s trade regulations.

3. Why is DGFT required?

DGFT is essential for regulating and promoting India’s foreign trade, ensuring that trade policies are effectively implemented and that businesses comply with international trade standards.

4. Who regulates DGFT?

DGFT operates under the Ministry of Commerce and Industry, Government of India. The ministry oversees DGFT’s functions and policy implementations.

Published on April 20, 2021.
Updated on July 01, 2025.

Sources:

1. https://ruswalglobal.com/dgft-guide/
2. https://www.dgft.gov.in/CP/?opt=dgft-organization
3. https://www.dgft.gov.in/
4. https://www.cogoport.com/en-IN/blogs/what-is-an-ebrc-why-do-exporters-need-it
5. https://www.dgft.gov.in/CP/?opt=services
6. https://byjus.com/free-ias-prep/directorate-general-foreign-trade/
7. https://www.credlix.com/blogs/what-is-dgft-and-its-role-in-import-export
8. https://content.dgft.gov.in/Website/dgftprod/7e5db2b3-ff64-4bda-b3bf-7d777618f99c/CITIZEN%20CHARTER.pdf
9. https://www.dgft.gov.in/CP/?opt=notification
10. https://content.dgft.gov.in/Website/DGFT%20FAQs%20-%20Digital%20Signature%20and%20e-Sign%20using%20Aadhaar%20v2.0.pdf
11. https://content.dgft.gov.in/Website/QCTD_User%20Manual%20V2.0.pdf

Related blogs