DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
DGFT is an organization coordinated by ministry of commerce and industry and lead by Dgft. Dgft plays an important and major role for uplifting and managing export trade profiles, trade disputes, and plays a vital role in supporting fellow exporters, DGFT is also responsible for formulating and implementing the foreign trade policy with the main objective of promoting India’s exports, DGFT issues authorization to exporters and monitors their corresponding obligations as DGFT has its wings or can say offices spread in major parts of the country and manages elegantly through its 24 regional offices in India located at Delhi, Jammu, Srinagar, Ludhiana, Guwahati, Indore, Kanpur, Panipat, Varanasi, Kolkata, Jaipur, Ahmedabad, Rajkot, Surat, Vadodara, Mumbai, Pune, Nagpur, Hyderabad, Bengaluru, Chennai, Coimbatore, Kochi and Vishakhapatnam.
The Importer -Exporter Code (IEC) is a major business identification number which is compulsory for any business owner or individual who wishes to trade globally. No person can convert its trade until an IEC Number is granted by the DGFT. The IEC is also required when an individual exporter or an importer deals in the trade and wishes to take benefits under the Foreign Trade Policy or is dealing with specified services or technologies.
IEC can be obtained only when an individual or a firm has obtained a firm such as “Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society.” Including GST, IEC number appears to be same as the PAN of the firm. The IEC is separately applied and issued by the DGFT.
For ease of doing business DGFT has created 30 export promotion councils and 6 no. of boards which are based on categories of the products and services. Exporters need to be a mandatory member of these EPC’s to export their product according to their product category and to avail benefits provided by these councils for them, these membership prevails under a specific certificate known as RCMC that is (Registration Cum Membership Certificate) in short these councils are known as RCMC certificates.
Let us discuss some features of the RCMC CERTIFICATES:-
- These councils share expertise and experience with exporters to improve product quality.
- Exhibit the domestic products in trade fairs
- Financial support to exporters in attending international trade fairs
- They also arrange buyer seller meet.
- Share the buyer trade enquiry with exporters related to the same niche on their own portals.
- Keep track record of the data related to exports and exporters for future concerns.
- Guide and update exporters about different schemes launched by the government from time to time.
This is also a mandatory document required to procure for any Indian Exporter whether he is a manufacturer or a merchant exporter, this certificate isn’t required for importing any goods or commodity into India.
DGFT has different types of schemes to help and support exporters in many different ways.
- ADVANCE AUTHORIZATION SCHEME (AA)
This is a type of scheme where an Indian exporter is liable to save his import duty and use the import products as raw a material to make own finished product and can re-export without paying any import taxes. Inputs such as packaging material, fuel, oil, catalyst which is consumed or utilized in the process of production of export product comes under this category.
- Export Promotion Capital Goods (EPCG) Scheme
The motive of the Export Promotion Capital Goods (EPCG) Scheme is to guide import of capital goods for producing quality goods and services and encourage India’s manufacturing products. EPCG Scheme helps in importing of capital goods for pre-production, production and post-production at zero custom duty.
- Merchandise Exports from India Scheme (MEIS) Scheme
This scheme has now been converted to RODTEP since 1st January 2021
This is a scheme designed to provide rewards and incentives to exporters to support infrastructural inefficiencies and associated costs.
The Objective of the Merchandise Exports from India (RODTEP) Scheme is to promote the manufacturers and export of notified goods and products. An IEC is required to apply for RODTEP scheme. This scheme has its incentives laid as per product and can claim from 0.5% upto 20% of the goods value.
- Service Exports from India Scheme (SEIS) Scheme
Service exporters are eligible for this category, which are granted benefits in the nature of transferable Duty Credit, as a percentage of Net Foreign Exchange earned on export of the eligible services in a financial year.
- Rebate of State and Central Levies and Taxes (ROSCTL) Scheme
This Scheme is to rebate all embedded State and Central Taxes/levied which are meant for exports which are made-up articles & garments. An IEC is required to apply for (ROSCTL) SCHEME.
- IMPORT MANAGEMENT SYSTEM
In this System DGFT generally notifies various restrictions or conditions on import of goods in India. These restrictions may require a documentation to be applied and approved prior to the given import goods. The infra here allows importers to apply for import licences, quotas and other registrations which are issued by DGFT. Some modules covered herein are Import License for Restricted Items, Steel Import Monitoring System (SIMS), Import License for Tariff Rate Quota (TRQ).
- EXPORT MANAGEMENT SYSTEM
DGFT notifies various restrictions or quota or conditions on certain category of exports from India. Some kind of restrictions may need to apply for a licence or registration prior to the exports. The system here allows exporters to apply for export licences, benefits, quotas and other registrations which are issued to exporters by DGFT. Some infra covered herein are Export License for Restricted Items.
- COUNTRY OF ORIGIN (COO)
Certificate of Origin (CoO) is an instrument to establish evidence and determine the origin of a product or service for the purpose of exports to a trading partner. As most of the countries share some trade agreement, this certificate helps for the tariff concessions when prescribed rules of origin are met and certificates presented.
- TRANSPORT AND MARKETING ASSISTANCE (TMA)
The “Transport and Marketing Assistance” (TMA) for specified agriculture products scheme aims to provide assistance for the international component of freight and marketing of agricultural produce which is likely to mitigate disadvantage of higher cost of transportation & export of specified agriculture products due to trans-shipment and to promote brand recognition for Indian agricultural products in the specified overseas markets.
- QUALITY COMPLAINT AND TRADE DISPUTES (QCTD)
Basically every country wants to maintain their good image across the Globe and Exporters need to project a good image of the country abroad to promote exports. Maintaining an enduring relationship with foreign buyers is of utmost importance, and complaints or trade disputes, whenever they arise, they need to be settled amicably as soon as possible. Importers too may have grievances, In any Endeavour to resolve such complaints or trade disputes and to create confidence in the business environment of any country. This segment is helpful regarding any kind of disputes between the domestic exporter and the international buyer.
