The Directorate General of International Trade has requested the local offices to enroll the contracts for wheat exporters and that they be confirmed by non-cancellable letters of credit. Recently, DGFT liberalized the export restrictions as more capacity was built, and the death rate from the illness in the country was less, so fewer people required ventilators. This shift has come after the administration, during this year, was forced to prohibit exports of essential commodities, such as ventilators, as there was a scarcity of such things within the country to meet its overseas demand. Now, not only is there a shift from a regime of merely restricting and regulating the same to one that, in fact, encourages and actively facilitates both exports and imports for better serving a self-interest in a country.

DGFT is an abbreviation for The Directorate General of Foreign Trade. It is an Indian government office that regulates and conducts trading activities between India and other countries. The office prescribes the norms through which trade is conducted, with efforts to provide businesses with supporting enterprises to export and import goods. It also disseminates information on trade and assists special economic zones to boost exports. Read on as I delineate in the discussion below about the importance and the organizational structure of the Directorate General of Foreign Trade.

What is DGFT?

The Directorate General of Foreign Trade (DGFT) is part and parcel of the Ministry of Commerce and Industry and is headed by the Director General of Foreign Trade. In its earlier avatar, the DGFT functioned as an arm of the government of India for executing the now outdated policies of controlling and encouraging international trade. However, since the government's economic policies underwent a sea change in 1991 to become open and liberal in nature, the role and function of the DGFT also underwent a significant transformation. Now, instead of just controlling imports and exports, it helps to encourage and facilitate foreign trade while still guarding the country's interests.

Organisational Set up

The main DGFT office is in New Delhi, headed by the Director General of Foreign Trade. Their main job is to implement India's foreign trade policy and facilitate the increase in exports. DGFT issues licenses to exporters and checks their duties and responsibilities through other country offices. It is fully represented with 25 regional DGFT offices, all in bigger cities, like Ahmedabad, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, and Chandigarh. The regional offices assist exporters to have information in matters relating to international trade agreements, rules pertaining to the products, and problems relating to dumping. This helps a business concern to make proper decisions regarding import and export. All these regional offices report to the main DGFT office located in New Delhi. The Director General of Foreign Trade in New Delhi ensures that the foreign trade policies are implemented across the country.

Objectives of DGFT

• DGFT seeks to increase exports of Indian goods and services by providing guidance and information to exporters.
•  DGFT also facilitates imports by granting licenses and permits. It also monitors import operations and assists importers with information and guidance.
•  DGFT regulates foreign trade in India through the implementation of rules and regulations about the entry and exit into international trade. DGFT, in this respect, provides information, guidance, and implementation of laws that secure the interest of the exporter and importer of India.
•  DGFT renders support and information with respect to foreign trade issues to exporters and importers. 
• The DGFT Directorate General of Foreign Trade administers the Foreign Trade Policy of India. The Foreign Trade Policy states the strategies and objectives of the government in regard to international trade.

Functions of DGFT

Directorate General of Foreign Trade (DGFT) Functions include:

Implementation of the foreign trade policy of the government. It enforces the export-import policy of India.Provides a database of all exporters and importers in India.EIC number required for exporting and importing goods is provided by them.It imposes controls, prohibits, or restricts upon importers and exporters.According to the trade agreements, it allows the transit of goods from India to adjacent countries.It encourages trade with neighboring countries.It allows free exports whenever the same is required.It controls DEPB rates. DEPB is an export incentive given by GOI.Handles quality complaints of foreign buyers of Indian export products.Formulates new codes in ITC-HS codes (Indian trade classification based on a harmonized system of coding). This code is given to export/import products.Regional offices help exporters with developments in international trade, like WTO agreements, rules of origin, anti-dumping issues, etc.

Body of Directorate General of Foreign Trade
There exist two principal classes of offices in the Directorate General of Foreign Trade (DGFT): the Zonal Offices and the Regional Offices.

Zonal Offices: The four zonal offices are based in Kolkata, Delhi, Chennai, and Mumbai. The Zonal Offices are administered by an Additional Director General of Foreign Trade.Regional Offices: The eight Regional Offices are administered by a Joint Director General, Deputy Director General, and Assistant Director General. The Director General is situated at Udyog Bhawan, New Delhi.

DGFT helps in building up a successful trade relationship with the country and to strengthen economic advancement. The principal activity of DGFT is to help and encourage exporting and importing.

Conclusion

DGFT has a vast role to perform in the orderliness of the export-import business in India. It supports business exports and imports through the issuance of licenses, dissemination of information on guidelines, and control over trade. DGFT is present in metros of the country and is focused on promoting exports and imports. It aids in augmenting the economic development process and works with power and energy to execute India's trade policy.

FAQs

Q.1 What is the full form of DGFT?
Ans. DGFT stands for Director General of Foreign Trade.

Q.2 What is the purpose of DGFT?
Ans. Formulating and implementing India's Foreign Trade Policy, with the prime objective of increasing exports.

Q.3 Who appoints the Director General of Foreign Trade in India?
Ans. A director general of foreign trade for India is appointed by the Central Government.

Also Read-  Central Board Of Direct Tax[CBDT]