1. DGFT and Foreign Trade Policy
Presentation by
D K Singh, Additional DGFT

2. Outline DGFT Background / Organizational Structure Major Functions
Major DGFT Schemes
Financial Support Under Various Schemes
Digitization and Trade Facilitation Initiatives
The Way Forward

3. DGFT: Background Attached office of Department of Commerce
Implements Foreign Trade (Development & Regulation) Act 1992
Previously Chief Controller of Imports and Exports under Imports and Exports (Control and Regulations) Act, Reformed to be DGFT under FT(D&R) Act, 1992.
Organization details:
ISO 9001:2008 certified, digital friendly
37 Regional offices
Approx employees. (2387-Sanctioned strength)

4. DGFT Organization 37 Regional Offices Minister, Commerce
Commerce Secretary
DGFT
Zonal office, Mumbai
RAs at Ahmedabad, Surat, Vadodara etc.
Zonal office, Kolkata
RAs at Shillong, Cuttack etc.
Zonal office, Delhi
RAs at Jammu, Jaipur, Kanpur etc.
Zonal office, Chennai
RAs at Bengaluru, Cochin, Coimbatore etc.
4 Additional
DGFT at HQ
37 Regional Offices

5. DGFT: Major Functions
Implementation of FT(D&R) Act: Authorizations for items under Import / Export control (< 4 % tariff lines)
Formulation of Foreign Trade Policy (FTP )
Implementation of promotional schemes of FTP
Grievance Redressal
Enforcement function
Capacity Building: Niryat Bandhu
Indian Trade Service (ITS) cadre management

6. IEC Information
More than 800,000 IECs issued so far. Less than 125,000 exported last year.
Every year over 60,000 new IECs issued.
New mandatory online application system introduced w.e.f. April 1, 2016
Digital signature , PAN and bank details required

7. Active Exporter & Importer Count
Exporter & Importer Count
Trade Type
Export
115806
119411
122162
Import
125936
133088
138725

8. Import /Export Control Functions
EXIM controls mainly on account of security, public health, public morals and environment grounds. Involves less than 4% of India’s Tariff Lines (at 8 digit level)
IMPORTS
EXPORTS
Prohibited items - 53 Lines: Include beef, beef tallow, products of wild animals and ivory
Restricted items Lines - include live animals, birds, vegetable planting material, psychotropic substances
STEs Lines: include food- grains, certain petroleum products and fertilizers.
Prohibited items - 59 Lines-Include Wild animals, beef, pulses and ivory
Restricted items lines: include horses, birds, rice bran, psychotropic substances, SCOMET [Special Chemicals, Organism, Materials, Equipment & Technology] items
STEs - 15 Lines: include certain grades of Iron ore

9. Major DGFT Schemes

10. A - Schemes for Merchandise exports
Category
Scheme
Details
For sourcing raw material
Advance Authorisation Scheme
Allows duty free import of raw material for production of export products.
Minimum value addition required is 15%.
The authorization is not transferable.
Duty Free Import Authorisation (DFIA) Scheme.
Allows duty free import of raw material.
The authorization is transferable.
Minimum value addition required is 20%.
For sourcing Capital Goods
Export promotion Capital Goods Scheme(EPCG)
Allows duty free import of Capital Goods.
Export Obligation equal to 6 times value of duty saved, to be completed by exporter in 6 years.
Reward Scheme
Merchandise Exports from India Scheme
Incentivizes export of selected products to specified markets. Rates of rewards are 2, 3 or 5%.
The duty credit scrip is transferable.

11. B - Schemes for Service Exports / other Schemes
Category
Scheme
Details
Scheme for Service Exports
Service Exports from India Scheme
(SEIS)
The scheme offers duty credit at the rate of 3 or 5% on net foreign exchange earned to eligible Service Exporters
Other Important Schemes
Schemes for Gems & Jewellery sector
(I) Advance authorization and replenishment scheme for import of raw material and (II) EPCG for import of capital goods; are available to the sector.
Schemes for supplies within the country
Deemed export benefits like terminal excise duty refund.
100% Export Oriented Units (EOU)
The scheme caters to units geared to export large part of production

12. Status Holder Certificates
Category
Number issued after
Export threshold -US$M*
One Star Export House          
 2835 3
Two Star Export house            
765 25
Three Star Export House        
 268
100
Four Star Export House          
 46
500
Five Star Export House          
  13
2000
Minimum export performance in current and previous three financial Years
( except for Gems and Jewellery sector)

13. Merchandise Exports from India Scheme (MEIS)
Incentives for 5012 tariff 2% / 3% / 5% of FOB value globally
Includes permissible exports by post / courier under e-commerce window
Resource ceiling of Rs. 22,000 Crore per annum
No landing certificate required
Implemented with support of DOR; further ease of implementation being explored with DoR

14. Services Exports from India Scheme (SEIS)
Incentive scheme for eligible service exports offering 3 and 5% of net foreign exchange earned
Only Mode 1 and Mode 2 services eligible.
Covers ‘Service Providers located in India’ instead of ‘Indian Service Providers’.
Service covered include at two
Simplification in implementation proposed with support of RBI

15. Interest Equalisation scheme
Cabinet Committee on Economic Affairs (CCEA) approved the Interest Equalisation Scheme on for 5 years w.e.f Operational guidelines of the scheme were issued by RBI vide Circular No.62 dated The main features of the scheme are as follows:
The rate of interest 3% per annum will be available on Pre Shipment Rupee Export Credit and Post Shipment Rupee Export Credit.
The scheme would be applicable w.e.f for 5 years. Government, however, reserves the right to modify/amend the Scheme at any time.
The scheme will be available to all exports under 416 specified tariff lines [at ITC (HS) code of 4 digit] and to all exports made by Micro, Small & Medium Enterprises (MSMEs) across all ITC (HS) codes.  
Scheme would not be available to merchant exporters.
 Banks are required to completely pass on the benefit of interest equalisation, as applicable, to the eligible exporters upfront and submit the claims to RBI for reimbursement, duly certified by the external auditor.
  All eligible exports under the scheme would have to meet the criteria of minimum processing for the goods to be called as Originating from India and would be governed by provision of Paragraph (a) (Rules of Origin [Non preferential]) of Handbook of Procedures of Foreign Trade Policy

16. Financial Support Under Various Schemes

17. Benefits Under Major DGFT Schemes: 2015-16
S.No.
Scheme Name
Number
FOB in Cr
Value in crores
Nature of scrip/ Authorisation 1
MEIS
31401
Duty Credit 2
Advance Authorisation
20620
CIF value 3
Annual Advance Authorisation
138 4
Duty Free Import Authorisation (DFIA)
175
594.05
384.33 5
0% EPCG POST EXPORT 22
87.29
17.11
Duty Entitlement 6
Zero duty EPCG Scheme
22513 8
Export Licence
341 - 9
Import licence
658 10
Replenishment Licence 24
773.88
40.46

18. Benefits Under Old schemes: 2015-16
S.No.
Scheme Name
Number
FOB in Cr
Value in Rs. Cr
Nature of scrip/ Authorisation 1
EPCG Concessional Duty 03% 5
2.06
0.27
Duty Entitlement 2
DEPB-Post Export
434
102.09
Duty Credit 3
Duty Free Replenishment Certificate
0.36
0.28
CIF value 4
SERVED FROM INDIA SCHEME
2072
Status Holder Incentive Scrip
815
390.87 6
Vishesh Krishi and Gram Udyog Yojana
13520 7
Focus Market Scheme
23346 8
Focus Product Scheme
84041 9
Target Plus Scheme
1.78 10
Incremental Export Incentivisation Scheme
2160
455.58

19. Digitalization & Trade Facilitation Initiatives

20. DGFT: Facilities for users
DGFT data exchange with Customs, Banks and EPCs through EDI message exchange system, reducing physical interface of clients and fraud possibilities
Exporter can now:
File online applications for IEC, Advance License, Drawbacks, MEIS
Pay application fee online and
Check status of their applications
(EODC, TED refund refund need to be addressed)
DGFT launched mobile application called “DGFT” in June 2015

21. DGFT: Facilities for users - The e-BRC system
Electronic Bank Realization Certificate (eBRC) for electronic transmission of export related foreign exchange realization from Banks to DGFT server operationalized on June 5, 2012.
So far over 1.7 Crore e-BRCs captured through this system.
Includes integrated platform for receipt, processing and subsequent use of all bank realisation related information.
DGFT MoUs with 13 State Governments for sharing e-BRC data for VAT refunds to exporters. MoU also with Enforcement Directorate.
RBI also uses eBRC data to fill data gaps in its system

22. DGFT: Facilities for users Complaint Resolution System, Twitter
Complaint Resolution System for resolution of EDI related issues complaints resolved
Public grievances portal of Department of Administrative Reforms & Public Grievances.
Twitter-#DGFTINDIA
Responds to tweets sent to CIM’s account and mc.twitterseva.com/

23. Thank you