What is a DGFT declaration? 

A DGFT declaration is a formal statement or document submitted to the Directorate General of Foreign Trade in India, encompassing various declarations related to export, import, licensing, and compliance with foreign trade policies and regulations.

What is the purpose of this declaration?

The purpose of a DGFT declaration is to regulate, document, and facilitate international trade activities in India. It ensures compliance with trade regulations, controls exports and imports, manages documentation, aids customs clearance, facilitates license management, and supports the implementation of trade policies.

What information is required from the Seller? 

Importer Exporter Code (IEC): This is a mandatory 10-digit code issued by the DGFT to Indian companies engaged in importing or exporting.

Company Details: Includes the full name of the company, registered address, contact details, and GST number (if applicable).

Authorized Person Details: Name and contact details of the person authorized to file applications.

Bank Details: For transactions, refunds, or duty drawback purposes.

You may also require additional for product-specific compliance purposes as well.

How to file this declaration?

Filing a DGFT (Directorate General of Foreign Trade) declaration involves submitting specific forms and documents related to foreign trade, such as the import or export of goods. This declaration is crucial for compliance with India’s foreign trade policy and regulations. Here’s a step-by-step guide on how to prepare and file a DGFT declaration:

Step 1: Determine the Required Declaration

First, identify which specific declaration is required for your transaction. This could be for an export obligation, import authorization, or other compliance under DGFT regulations.

Step 2: Gather Necessary Information and Documents

Collect all necessary information and documents related to the transaction. This may include:

*Company information (e.g., IEC - Importer Exporter Code)

*Details of goods (HS codes, description, quantity, value, etc.)

*Relevant licenses or certifications

*Supporting documents such as bills of lading, commercial invoices, packing lists, etc.

Step 3: Access the DGFT Website.

Go to the DGFT official website (dgft.gov.in). The website is the main portal through which most applications and filings are submitted.

Step 4: Use the DGFT Online Application System

Log in/Create an Account: If you haven’t already, create an account on the DGFT portal. If you have an account, log in using your credentials.

Navigate to the relevant section: Depending on what you need to file, find the relevant section on the portal. This could be under 'E-com Module' for licenses, 'IEC Profile Management', or others.

Step 5: Fill Out the Application Form

Complete the application form specific to your declaration. Input all required details carefully. Accuracy is crucial to avoid processing delays or rejections.

Attach all required documents in the prescribed format and size.

Step 6: Pay the Required Fees

Calculate any fees that might be required for the filing of your declaration or for processing your application.

Use the online payment gateway provided on the DGFT portal to make the payment.

Step 7: Submit the Declaration

Review your application and attached documents for completeness and correctness.

Submit the application through the DGFT portal.

Step 8: Track Your Application

Use the Application Tracking feature on the DGFT portal to monitor the status of your application. You will receive notifications via email or SMS regarding the status of your application.

Step 9: Respond to Any Queries

If the DGFT has any queries or requires additional information, ensure you respond promptly to avoid delays in processing your application.

Step 10: Obtain Approval

Once your application is processed and approved, you will receive a confirmation and any relevant documents or licenses digitally through the DGFT portal. Ensure to keep copies of all correspondence and approvals for your records.

Purpose of DGFT Declaration

1. Regulatory Compliance:

DGFT declarations ensure that exporters and importers comply with the rules and regulations set forth under the Foreign Trade Policy (FTP) of India. Compliance is necessary to monitor and control the flow of goods in and out of the country, ensuring that all transactions adhere to national and international trade laws.

2. Facilitation of Trade:

By requiring declarations, DGFT facilitates smoother and more efficient trade processes. These declarations help in the quick clearance of goods at customs, prevent illegal trade, and ensure that all duties and tariffs are accurately applied and collected.

3. Monitoring and Control:

DGFT uses these declarations to monitor the volume and type of goods being traded. This helps in assessing economic trends, planning governmental trade policies, and making decisions on export-import strategies. It also assists in controlling the export of sensitive technologies and materials that could be used in ways that might compromise national security or international obligations.

4. Data Collection:

The information gathered from these declarations provides valuable data on trade flows, which can be used for economic analysis and policy formulation. This data is crucial for understanding market dynamics, identifying growth sectors, and evaluating the impact of trade policies.

5. Support and Benefits:

Declarations are also used to administer various trade promotion schemes like duty drawback, export incentives, and concessions under different trade agreements. These support measures help businesses compete in global markets more effectively.

6. Legal and Financial Accountability:

Filing DGFT declarations helps maintain legal and financial accountability for businesses engaged in foreign trade. This ensures that all transactions are properly recorded, duties are paid, and any financial incentives or subsidies are rightfully claimed and distributed.

7. Promotion of Exports:

By managing licenses for exports and imports, the DGFT supports the government’s initiatives in promoting Indian exports. The declarations play a role in ensuring that benefits intended to enhance export competitiveness are correctly and efficiently allocated.

8. Protection of Domestic Industries:

DGFT declarations help in implementing protective measures for domestic industries that may be vulnerable to competition from imported goods. Through various restrictions and tariffs based on the declarations, the government can provide a level playing field for domestic businesses.

9. Implementation of Export Controls:

Certain declarations are critical in enforcing export controls, particularly for dual-use items, defense, and strategic goods. These controls prevent the proliferation of weapons, safeguard national security, and ensure compliance with international treaties.

Overall, DGFT declarations are a fundamental component of India’s trade governance, ensuring that the export and import of goods are conducted transparently, responsibly, and beneficially for the country’s economic health.

When is the DGFT Declaration applicable?

A DGFT (Directorate General of Foreign Trade) application is applicable in various scenarios related to the import and export of goods in India. The DGFT plays a crucial role in facilitating and regulating foreign trade, and its application process is central to complying with various trade policies and regulations. Here are some scenarios where a DGFT application would be required:

1. **Import and Export Code (IEC):** Anyone looking to engage in import or export activities in India needs to apply for an Import Export Code (IEC) from the DGFT. This unique code is a prerequisite for conducting international trade.

2. **Export Promotion Schemes:** Exporters wishing to avail themselves of benefits under various schemes like the Merchandise Exports from India Scheme (MEIS) or the Service Exports from India Scheme (SEIS) need to apply to the DGFT for eligibility certificates and rewards.

3. **Export Licenses:** Certain items are restricted or prohibited for export and may require specific licenses from the DGFT. Businesses need to apply for these licenses before they can export such items.

4. **Import Licenses:** Similar to export licenses, importing certain restricted goods into India may require specific import licenses issued by the DGFT.

5. **Certificate of Origin:** Exporters needing to prove the origin of their goods for customs clearance in the importing country may need to apply for a Certificate of Origin through the DGFT.

6. **Quality Complaints and Trade Disputes:** Addressing grievances related to the quality of imports and exports or resolving trade disputes also involves filing applications with the DGFT.

7. **Tariff Rate Quota (TRQ) Application:** Importing specified goods under tariff rate quotas, which allow a certain quantity of imports at a lower tariff rate, requires applying to the DGFT.

The DGFT application process is typically completed online through the DGFT portal, making it accessible and manageable for traders and businesses involved in foreign trade. This digital platform facilitates a smoother application process for the various licenses, codes, and certifications required to comply with India’s foreign trade policy.