OVERVEIW ON DGFT WORKING
BY
H C GHOSH
ASSISTANT DIRECTOR GENERAL
FOREIGN TRADE
DGFT
EASTERN REGION
ZONAL OFFICE
KOLKATA
OTHER OFFICES OF
EASTERN ZONE
DDGFT CUTTACK
DDGFT PATNA
KOLKATA
DDGFT GUWAHATI
DDGFT SHILLONG
ROLE OF DGFT
(MINISTRY 0F COMMERCE & INDUSTRIES)
SECTION 5 OF FTDR(FOREIGN TRADE
DEVELOPMENT AND REGULATION) ACT 1992
CONFERRED POWER TO NOTIFY FOREIGN
TRADE POLICY
FUNCTIONING
• ALL POWERS ARE DERIVED FROM
F.T.(DEVELOPMENT&REGULATION )ACT, 1992 AND RULES
AND ORDER MADE THEIR UNDER.
• FOREIGN TRADE POLICY IS ISSUED THEIR UNDER FOR FIVE
YEARS TERMS WHICH IS AMENDED TIME TO TIME BY
NOTIFICATIONS
• ANNUAL SUPPLIMENT IS ALSO ISSUED INCORPORATING ALL
AMMENDMENTS.
FOREIGN TRADE POLICY
BOOK CONSISTS OF NINE
CHAPTERS
CHAPTERS
1A LEGAL FRAME WORK
1B SPECIAL FOCUS INITIATIVE
1C BOARD OF TRADE
2 GENERAL PROVISIOS REGARDING IMPORT & EXPORT
3 PROMOTIONAL MEASURES
4 DUTY EXEMPTION & REMISSION SCHEMES
5 EPCG SCHEMES
6 EOUs, EHTPs,STPs& BTPs
7 SEZ
8 DEEMED EXPORT
9 DEFINATIONS
PROCEDURE TO BE FOLLOWED
IN ORDER TO UNDER TAKE BUSINESS OF THIS ORGANISATION, FOLLOWING ARE PROCEDURES BOOKS
 HAND BOOK OF PROCEDURES VOL-I
( APPLICATION PROCEDURE)
 H.B. PROCEDURES VOL-II
(INPUT OUTPUT NORMS BOOK)
 HS (ITC) CLASSIFICATION BOOK
 DEPB RATE LIST
EXPORT PROMOTIONAL SCHEME
• SERVED FROM INDIA SCHEME
– UNDER THE SCHEME DUTY CREDIT AT THE RATE OF 10% ON
FREE FOREIGN EXCHANGE EARNED DURING LAST YEAR IS
GIVEN TO THE SERVICE EXPORTER WHO HAVE EARNED AT
LEAST 10 LAHK FOREIGN EXCHANGE IN CASE OF COMPANY AND
5 LAHK IN CASE OF INDIVIDUAL.
– CREDIT ALLOWED UNDER THE SCHEME IS NOT TRANSFERABLE
FOCUS MARKET SCHEME
UNDER THE SCHEME EXPORT OF GOODS TO SOME NOTIFIED
NON TRADITIONAL COUNTRIES IS ELEGIBLE FOR DUTY CREDIT
@ 3% ON FOB VALUE EARNED
CREDIT ISSUED IS FREELY TRANSFERABLE
VISHESH KRISHI AND GRAM
UDYOG YOJANA
– UNDER THE SCHEME DUTY CREDIT AT
THE RATE OF 5% ON FREE FOREIGN
EXCHANGE OF FOB VALUE OF EXPORT IS
GIVEN TO THE EXPORTER
– CREDIT ALLOWED UNDER THE SCHEME
IS NOT TRANSFERABLE
• FOCUS PRODUCT SCHEME
– UNDER THE SCHEME DUTY CREDIT @ 2% ON FOB IN FREE
FOREIGN EXCHANGE EARNED IS ISSUED AGAINST EXPORT OF
ITEMS AS NOTIFIED UNDER APPENDIX 37 D
– DUTY CREDIT ISSUED UNDER THE SCHEME IS FREELY
TRANSFERABLE.
DUTY REMISSION SCHEMES
•
ADVANCE AUTHORISATION SCHEME
–
–
–
–
–
–
–
ALLOWS DUTY FREE IMPORTS OF INPUTS REQUIRED FOR
MANUFACTURING OF FINISHED GOODS
LICENCES ARE ISSUED WITH MINIUM 15% VALUE ADDITION
HAVING 24 MONTHS VALIDITY FOR IMPORT AND 36 MONTHS
FOR DISCHARGE OF STIPULATED EXPORT OBLIGATION
INPUTS ARE ALLOWED AS PER SION FIXED AND PUBISHED IN
THE H.B. VOL-II
REVALIDATION FOR FURTHER SIX MONTHS IS ALSO ALLOWED
IF NORMS ARE NOT FIXED, AUTHORISATION CAN BE ISSUED
UNDER SELF DECLARATION SCHEME AND IN THAT CASE
NORMS ARE FIXED BY H.Q. NORMS COMMITTEE.
SHOERTFALL IF ANY COULD BE REGULARISED ON PAYMENTS
OF APPLICABLE DUTIES.
IN CASE OF VIOLATION OR MIS USE OF THE SCHEME, ACTION
UNDER F.T.(D&R) ACT, AND F.T.(REGULATION) RULES,1993
ARE TAKEN.
DFIA
•
TWO TYPES OF DUTY FREE IMPORT AUTHORIZATION ARE ISSUED
–
–
–
–
WITH ACTUAL USER CONDITION
WITH TRANSFERABLE CONDITION
20% VALUE ADDITION IS REQUIRED
ON FULFILLMENT OF EXPORT OBLIGATION TRANSFERABILITY IS
ALLOWED AND HOLDER OF AUTHORISATION BECOMES FREE TO SALE
EITHER CERTIFICATE OR GOODS IMPORTED THEIR UNDER
– AUTHORISATION IS ISSUED WITH 24 MONTHS VALIDITY
EPCG
•
•
•
•
•
•
AUTHORISATION UNDER THIS SCHEME IS ISSUED TO ALLOW IMPORTS OF
CAPITAL GOODS ON PAYMENT OF 3% CUSTOMS DUTY
FOR REMAINING DUTY EXEMPTION, AUTHORISATION HOLDER NEEDS TO
UNDERTAKE 8 TIMES EXPORT OBLIGATION WITHIN 8 YEARS FOR DUTY
SAVED AMOUNT LESS THAN 100CR AND 12 YEARS MORE THAN 100CR.
RELAXATION TO SSI AND AGRO UNIT IS ALLOWED
AUTHORISATIONS ARE ISSUED WITH 36 MONTHS VALIDITY FOR IMPORT
OBLIGATION IS REQUIRED TO BE FULFILLED OVER AND ABOVE AVERAGE
PERFORMANCE OF THE UNIT DURING LAST THREE YEARS.
OBLIGATION IS FULFILLED BY EXPORT OF GOODS MANUFACTURED BY USE
OF IMPORTED MACHINE HOWEVER, EXPORT CAN ALSO BE FULFILLED BY
EXPORT OF OTHER PRODUCTS PRODUCED BY GROUP COMPANY SUBJECT
TO AVERAGE PERFORMANCE OF GROUP COMPANY IS BEING TAKEN INTO
ACCOUNT FOR FIXATION OF AVERAGE PERFORMANCE.
DEEMED EXPORT
• REFUND OF DRAW BACK
– DUTY PAID ON INPUTS ARE REFUNDED UNDER THE SCHEME AS
PER ALL INDUSTRY RATE AND IF ALL INDUSTRY RATE IS NOT
AVAILABLE THAN BRAND RATE IS FIXED BY THE COMMITTEE.
REFUND OF TERMINAL EXCISE DUTY
UNDER THE SCHEME, TERMINAL EXCISE DUTY ACTUALLY PAID
ON SUPPLY OF FINISHED GOODS BY DEEMED EXPORTER, WHO
QUALIFY UNDER THE CRITERIA MENTIONED UNDER CHAPTER 8
OF THE POLICY IS REFUNDED.
THANK YOU
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