Introduction

The Government of India taken into view of India’s improving exports that becomes the harbinger of a big source to attract the profit earning. To fix this, the government of India established the Directorate General of Foreign Trade (DGFT) in India to regulate, monitor and track the international shipments.

Under DGFT, there are various licenses that are provided from this government organisation. In addition to this, DGFT constantly monitors the conditions to introduce incentive based exports or duty free business exports to encourage international trade. This article has discussed how to obtain the DGFT license, its eligibility criteria, products covered and documents to get the DGFT license.

What is a DGFT License?

Before the EXIM policy of 2007, most of the goods were freely moved across the countries. But after the implementation of EXIM policy 2007, some of the goods imposed certain restrictions on the categories of export. DGFT license is the document that enables the exporters who intend to export their goods must obtain the DGFT license.

Types of DGFT License

Following are the types of DGFT license:

• IEC Code: IEC code is a 10-digit alphanumeric code that is used for exporting and importing the types of goods in India. This legal validity for IEC code helps to facilitate imports for transactions in India and receive funds for foreign trade. IEC Registration.
• EPCG (Export Promotion Capital Goods): On obtaining this certificate, one can easily facilitate the import of machinery and equipment by the business with reduced or nil customs duty.
• Certificate of Origin (CoO): By obtaining the Certificate of Origin, it ensures that the product is manufactured in the name of the particular country and hence it is proof for the product production. Certificate of Origin.
• Special Advance Authorisation: This is the extended version of advance authorisation that covers a wide range of import duty-free.
• Export Credit Guarantee Corporation (ECGC): This is the financial insurance to protect the goods of exporters for international trade.
• Duty Free Import Authorisation (DFIA): Under this scheme, a company can easily facilitate its goods without the payment of duty.

Benefits of DGFT License

Here are the benefits of DGFT license, which are as follows:

• Reduces the number of illegal transportation
• No Annual Maintenance Fees
• Ease of global transactions
• Regulatory compliance

Eligibility Criteria for DGFT License

It is important to look for the eligibility criteria first that should match with the requirement of a DGFT license. Here’s the list of eligibility criteria DGFT license which should be followed before deciding whether you should take the license or not:

• Business must have a valid PAN card for applying IEC
• Business must have a business structure such as one person company, partnership and LLP. Partnership Firm Registration.
• Business must have a proper GST certificate registration GST Registration.

Products Covered under DGFT License

Here’s the list of products covered under the DGFT license:

• Handmade woollen carpets and other floor coverings
• Handicraft items
• Dairy produce, honey, edible products of animal origin
• Edible fruits and nuts and peels of fruits
• Cereals
• Products of the milling industry like malt, starch, wheat gluten
• Oil seeds and fruits, straw and fodder
• Gums, resins, vegetable saps and extracts
• Prepared edible fats and vegetable and animal fats
• Sugar and sugar confectionery
• Residues and wastes from the food industry and prepared animal fodder
• Salt, sulphur, earth and stones, plastering materials, lime, and cement
• Organic chemicals
• Pharmaceutical products
• Fertilizers
• Tanning and dying agents and their derivatives
• Essential oils, perfumes, cosmetics and toiletry preparations
• Wood, wood pulp, and wooden products
• Cotton, jute, and their derivatives

Documents Required for DGFT License

The documents required for DGFT license application are:

• ANF-1 Form and the application form for export license of restricted items
• Copy of the purchase order from the purchaser
• Proof of online payment of application fee
• PAN
• Identify and address proof
• Cancelled cheque

DGFT License Fee Structure

The DGFT license fee structure is as follows:

How to Apply for DGFT License?

Here’s the step-by-step procedure for obtaining the DGFT license:

1. Step 1: Consult Our Team Bizfoc
   If you want to register under DGFT License, for the necessary procedures or to investigate, enquire, or have a simple doubt, you can contact our professional experts. Our Bizfoc team experts will help you navigate all your doubts, inquiries, or even investigations regarding the DGFT License via email or just a call away. Contact us for more details.
2. Step 2: Gather the Documents
   Once you have decided, you need to collect all the necessary documents for registration to proceed with the DGFT License process. Documents such as IEC registration, GST registration, manufacturing license, or business registration are required for registering under the DGFT License online in India.
3. Step 3: Submit the Application and Pay Fees
   After ensuring that you're grounded and satisfied with your doubts, pay the registration fees along with the application. For filing the application, you won’t need to fill it out on your own. You will receive complete assistance in filing your online application form from our team of experts. You just need to provide us with the required details as and when needed.
4. Step 4: Verification and Approval
   Once your application is submitted to the concerned authorities, they will verify your documents. If any errors or discrepancies are found, the application will be rejected. If no issues are identified, the authorities will approve the application.
5. Step 5: Issuance of DGFT License
   After the application is scrutinized by the regulatory authority, the DGFT License will be issued in the name of the concerned applicant.

Validity and Renewal of DGFT License

The DGFT license is valid for 2 years (24 months) for Capital Goods products and 1.5 years (18 months) for Material Goods products. After expiration, the license needs to be reapplied for.

Time Taken to Obtain DGFT License

It takes around 10-15 days from the date of application to obtain the DGFT license.

Why Choose Bizfoc for DGFT License?

Top reasons to choose Bizfoc for your DGFT License registration:

• Hassle-free procedures
• Cost-effective solution
• Quick responses to all your queries
• Free assistance from experts
• Proven success

Conclusion

The DGFT license is an important document to encourage international trade. Trading without the restriction, duties and custom clearance will be difficult to revamp across the global market. Under this registration, there are also various services which are only associated with a particular product. To obtain the DGFT license in India, an applicant needs to first consult with their expert advisor so that the certificate will be issued with the support from your concerned expert team.

Frequently Asked Questions