Directorate General of Foreign Trade (DGFT)
This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. It is responsible for formulating and implementing the Foreign Trade Policy with the main objective of promoting India’s exports. The DGFT also issues scripts/authorisation to exporters and monitors their corresponding obligations through a network of 36 regional offices and an extension counter at Indore.
All regional offices provide facilitation to exporters in regard to developments in international trade, i.e. WTO agreements, Rules of Origin and anti-dumping issues, etc. to help exporters in their import and export decisions in an internationally dynamic environment.
Our DGFT Consultancy Services involve following-
Export Incentives (MEIS.)
This is the benefit or incentive given by Govt. to exporter, (depending on the product which is exported from India). Rewards under MEIS schemes are payable as a percentage (2, 3 or 5% ) of realised FOB value of covered export, by way of the MEIS scheme duty credit scrip.
EPCG License – Issuance and Redemption.
Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre-production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issued
Advance License – Issuance and Redemptions.
An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed/ utilised to obtain export product, may also be allowed, validity of this license is 18 to 24 months.
Invalidation of Licenses.
On receipt of such request, either at the time of issuance of licence or subsequently, the licensing authority shall make the licence invalid for direct import and issue an invalidation letter, in duplicate, to the EPCG/Advance licence holder. The licensing authority shall simultaneously grant permission to the EPCG/Advance licence holder to procure the capital goods indigenously in lieu of direct import.
Modification/Amendment in Advance License or EPCG.
This means you can make a request for any amendment in the product you are importing.
Revalidation of Licenses & EOPExtension of Licenses
This means you can make a request for extension of validity of a license.
Clubbing
Clubbing shall be permitted only when there is shortfall in fulfilment of export obligation occurred in first authorisation and excess exports are made in subsequent Authorisations. However, this condition may not be insisted when validity period (for import) of Authorisations runs concurrently and imports made in subsequent authorisation falls within validity period (for import) of first authorisation and such import made within validity period of first authorisation are on pro-rata, equal to or in excess to the extent of exports made in first authorisation. Subsequent Authorizations issued after expiry of validity of first Authorisation shall not be allowed to be clubbed.
Bond Cancellation at Customs
The necessary documents to prove the export obligation are filed with customs authorities where in you have executed bank guarantee and bond. The customs authorities verifies the documents and once satisfied with the obligation on bond and bank guarantee, cancel the bond and bank guarantee and make necessary entry in their records on fulfilling the obligation.
EODC - Export Obligation Discharge Certificate etc.
EODC.online is designed to help exporters to monitor the status of their applications submitted for grant of Export Obligation Discharge Certificate in respect of Advance Authorisations / EPCG Authorisations.
SION fixation/revision & obtaining a license from DGFT.
SION in short is standard norms which define the amount of input/inputs required to manufacture unit of output for export purpose. Input output norms are applicable for the products such as electronics, engineering, chemical, food products including fish and marine products, handicraft, plastic and leather products etc. SION is notified by DGFT in the Handbook (Vol.2), 2002-07 and is approved by its Boards of Directors. An application for notification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporter. The Directorate General of Foreign Trade (DGFT) from time to time issue notifications for fixation or addition of SION for different export products. Fixation of Standard Input Output Norms facilitates issues of Advance License to the exporters of the items without any need for referring the same to the Headquarter office of DGFTon repeat basis.
Deemed Export Benefit
Deemed Export Benefit Scheme is an Indian concept which refers to the transactions in which the supplied goods do not leave the country i.e. these products aren’t expected. The payments for these products are made in Indian currency or in foreign exchange only. These products are manufactured and used in India itself.
Negative/Restricted Import Licenses
Restricted items can be imported only after obtaining an import license, An import license is valid for 24 months for capital goods, and 18 months for are listed on the restricted schedule, which is a ‘negative list’ of exports.
SCOMET Export Licenses
The products under regulations and license are given the acronym “SCOMET” – which stands for – Special Chemicals, Organisms, Materials, Equipment and Technologies.