DGFT Registration for Exporters – Apply Online & Avoid Rejection

  INTRODUCTION

It is required to register with the DGFT to work in import and export businesses in India. By approving trade documents and permits, DGFT directs and supports international trade operations across India. Businesses can obtain trade benefits from the Indian government while complying with foreign trade regulations through DGFT registration. 


WHAT IS DGFT REGISTRATION

All Indian export-import laws and regulations are overseen by the Directorate General of Foreign Trade (DGFT). Through its various initiatives that promote global trade, DGFT, under the Ministry of Commerce and Industry, creates and implements the Foreign Trade Policy. DGFT offers IECs to firms and oversees export incentives through the Duty Exemption and Remission Schemes. By registering with the DGFT, businesses can lawfully import and export goods and look into alternatives for export promotion.  


WHY IS DGFT IMPORTANT

DGFT significantly shapes India's commerce ecosystem. DGFT Registration is crucial for the following principal reasons: 

1. Policy Implementation: DGFT creates and implements the foreign trade policy in India. It helps trade policies align with the global standards, making trade procedures simpler and more effective. The organization supplies straightforward export and import services and safeguards traders from trade law misconduct.

 2. DGFT License Issuance: Every business must obtain the appropriate trade license before launching foreign trade operations. Export Promotion Capital Goods (EPCG) permits, Advance Authorizations permits for tax-free imports, and IEC licenses for import-export transactions are among the customs licenses offered by DGFT. These permits are necessary for businesses to trade globally, but only for certain kinds of goods. They can lawfully carry out their import and export operations thanks to the permits.

 3. Trade Incentives: In addition to duty exemptions, companies that collaborate with DGFT receive tax advantages and export incentives. Exporters can lower operating costs and increase profits by using trade incentives. It helps them succeed amid international market competition.

 4. Export Data Monitoring: DGFT manages trade data by tracking exporters' performance and import-export transactions. To increase exports, DGFT uses its monitoring operations to identify relevant trade trends and assist in selecting products with high market demand.

5. Digital Tools and Services: DGFT's internet services facilitate easier business transactions. Companies need the DGFT Digital Signature (DGFT DSC) for safe document handling and digital license management. Additionally, they can use the portal to monitor the status of their trade applications. The digital approach reduces the amount of paper that enterprises must handle and simplifies trading.  


WHAT IS DGFT LICENSE

A DGFT license is a legal permit that permits companies to import and export particular products. For some products that are classified as limited or controlled trade, a permit is required. Businesses cannot trade these goods internationally without a DGFT license. DGFT licenses include the following:

 • A required 10-digit code for import-export companies is called an import-export code, or IEC.

• The Advance Authorizations License permits the duty-free import of raw materials used in the production of export goods.

• Export Promotion Capital Goods or EPCG License: Allows enterprises to import capital goods duty-free under specific export commitments.

• Importing steel products requires DGFT SIMS registration.

• Importing goods like palm oil under DGFT trade restrictions requires a PIMS registration. 


WHO NEEDS DGFT LICENSE

Businesses that import or export commodities must have a DGFT license. It is especially crucial for:

 • Manufacturers and Exporters: Businesses that export completed items such as electronics, textiles, and pharmaceuticals must apply for licenses, such as the Advance Authorizations License.

• Importers of Restricted Goods: Companies that import restricted goods, such as steel products or palm oil, require permits such as SIMS Registration, DGFT, or PIMS DGFT.

• Service Exporters: To be eligible for export-related incentives, service providers exporting IT, financial, or consulting services must register with DGFT.  



PENALTIES OF NON-COMPLIANCE WITH DGFT REGISTRATION

Failure to comply with the DGFT Regulations can result in severe penalties, such as

 1. Suspension or Cancellation of License: Businesses that fail to comply with DGFT laws may risk the suspension or permanent cancellation of their DGFT license, which is necessary for import and export transactions. Without a valid licence, the company cannot continue any cross-border commercial operations.

2. Monetary Penalties: Companies that disregard international trade regulations may face heavy fines from the DGFT. The DGFT fines companies for infractions; if non-compliance persists, the penalties increase.

3. Product Seizures and Import Bans: Products imported or exported without proper authorisation may be seized by customs authorities. To enforce its regulations, the DGFT may prohibit imports from companies that repeatedly violate import laws.

4. Loss of Export Incentives: Companies that violate export regulations will never again be eligible for government incentives, such as import limitations and tax breaks. The business can no longer make money and run efficiently.  


CONCLUSION

 In conclusion, DGFT registration is an important or mandatory compliance requirement for any business aiming to participate in international trade from India. Obtaining an IEC, i.e., Import and Export Code, not only ensures legal compliance but also unlocks multiple export incentives and growth opportunities for businesses. With an online, simplified process, businesses can easily apply for DGFT registration and expand their global footprint efficiently.  


FAQs

  1. Where can I find the DGFT restricted items list for export?

The DGFT restricted items list for export is published in the ITC (HS) Classification on the DGFT portal, specifying items that require prior authorization before export.

2. What is a Special Import License issued by DGFT?

A Special Import License (SIL) issued by DGFT permits the import of specific restricted goods under defined conditions and validity periods.

3. What are the DGFT registration fees in India?

The DGFT registration fee for obtaining an IEC (Import-Export Code) is currently nil, as the IEC is issued free of cost by DGFT.

4. When is a DGFT license required for restricted items?

When commodities are classified as "Restricted" in the ITC (HS) schedule for import or export, a DGFT licence is required.

 5. How can I check DGFT license status online?

You can track your DGFT license status online by logging into the DGFT portal using your IEC and application reference number.


6. Is a DGFT license required for gold import in India?

Yes, a DGFT license for gold import is required, and imports are allowed only through nominated agencies or authorized entities as per DGFT norms.