DGFT Approval
At Vincular, we offer comprehensive and customized solutions to help businesses confidently manage their DGFT-related obligations.
Introduction to DGFT
What is DGFT?
The Directorate General of Foreign Trade (DGFT) is an attached office of the Ministry of Commerce and Industry, Government of India, regulating and facilitating foreign trade.
Regulatory Body
Governed by the Ministry of Commerce and Industry under the Foreign Trade (Development and Regulation) Act, 1992, with headquarters in New Delhi.
Key Functions
Issues authorizations like IEC codes, Advance Authorizations, EPCG licenses, and formulates foreign trade policies.
Why is DGFT Approval Required?
DGFT approvals are essential for businesses involved in import or export activities in India. Without necessary approvals, consignments may be detained, delayed, or rejected, resulting in significant financial and legal implications.
- • Import restricted or capital goods
- • Avail export incentives and schemes
- • Comply with India's EXIM policy
- • Benefit from duty exemptions or concessions
Types of DGFT License Categories
India divides goods into different categories to decide whether a DGFT license is needed
Free Items
Can be imported or exported without a DGFT license
Examples:
- • Clothing
- • Toys
- • Stationery
- • Household items
Note: You can trade these freely, but standard customs and GST rules still apply.
Restricted Items
Require DGFT approval before import, export, or manufacture
Examples:
- • Chemicals
- • Medical equipment
- • Electronic devices
- • Machinery
- • Tyres
Note: License ensures compliance with safety, environmental, and trade rules.
Prohibited Items
Cannot be imported or exported at all
Examples:
- • Narcotic drugs
- • Banned chemicals
- • Items restricted for national security
Warning: Trading these is illegal and can lead to penalties, confiscation, or legal action.
Additional Authority Approvals
Some items may also need approvals from other authorities along with DGFT license:
BIS for quality standards
Drug Controller for pharmaceuticals
MoEFCC for environmental clearance
Our DGFT Approval Services
Whether you're just starting or managing complex international trade operations, our team ensures full compliance while maximizing available benefits
IEC Code Assistance
The first and most essential step for any entity planning to import or export from India.
- • Prepare and submit accurate applications
- • Ensure proper documentation
- • Resolve technical issues or rejections
- • Quick IEC issuance without hassle
Advance Authorization & EPCG
Schemes allowing duty-free import of inputs and capital goods for export production.
- • Evaluate eligibility based on business model
- • Calculate duty savings and cost-benefit analysis
- • Draft and file license applications
- • Maintain compliance with scheme conditions
EODC Preparation
Export Obligation Discharge Certificates to close licenses after meeting export obligations.
- • Gather export documentation and shipping bills
- • Prepare EODC application as per DGFT format
- • Submit correctly and follow up for closure
- • Avoid penalties due to missed deadlines
Duty Exemption Schemes
Navigate multiple DGFT schemes and incentives with expert interpretation.
- • Advice on most beneficial schemes
- • Policy clarifications on ambiguous cases
- • FTP and HSN code interpretations
- • Product restriction guidance
DGFT Official Liaison
Professional representation with DGFT offices for faster resolution of processes.
- • Single point of contact with DGFT offices
- • Professional case representation
- • Faster turnaround times
- • Query clarifications on your behalf
Goods Classification Advisory
Correctly classify products for trade compliance and avoid port detentions.
- • Determine correct HSN/SAC codes
- • Check restricted/prohibited categories
- • Ensure proper documentation
- • Avoid detention at ports
Penalties & Risks for Non-Compliance
Seizure or Delay
Consignments detained at ports
IEC Revocation
Loss of import-export privileges
Lost Incentives
Ineligibility for trade benefits
Legal Action
Financial penalties and prosecution
Credibility Impact
Negative business reputation
Common Challenges & How Vincular Solves Them
| Common Challenge | How Vincular Solves It |
|---|---|
| Complex documentation and procedural delays | Our regulatory experts handle end-to-end paperwork and keep timelines on track |
| Frequent policy changes | Our team stays updated with real-time DGFT policy updates and alerts you proactively |
| Rejections due to incorrect application | We review all technical and legal details to ensure 100% accuracy |
| Delays in EPCG/Advance License processing | We liaise with DGFT officers to expedite approvals |
| Lack of awareness about eligibility for incentives | We assess your trade profile to identify and apply for relevant benefits |
DGFT Compliance Process
1. Product Classification
Determine if products are Free, Restricted, or Prohibited items
2. IEC Registration
Obtain Importer Exporter Code as the first step for trade
3. License Application
Apply for specific DGFT licenses based on business requirements
4. Compliance & Benefits
Maintain compliance and avail duty exemptions and trade benefits
Why Choose Vincular for DGFT Services?
Expert DGFT compliance solutions to maximize your international trade potential
100% Accuracy
Technical and legal review ensures error-free applications
Faster Processing
Direct liaison with DGFT officers for expedited approvals
Policy Updates
Real-time updates on DGFT policy changes and opportunities
Maximize Benefits
Identify and apply for all eligible trade incentives and schemes