Regulatory & Tax

DGFT

Directorate General of Foreign Trade — the agency under the Ministry of Commerce that regulates imports and exports in India.

DGFT issues Importer Exporter Code (IEC), publishes the Foreign Trade Policy (FTP), administers export incentive schemes (RoDTEP, MEIS, SEIS), and licenses restricted import/export categories.

For Indian SMBs in international trade: DGFT registration (IEC) is mandatory before any cross-border transaction. The portal is dgft.gov.in. Most processes are online and free or low-fee.

Key schemes administered by DGFT: RoDTEP (Remission of Duties and Taxes on Export Products) — replaced MEIS in 2021, available as duty credit scrips for most export categories. SEIS — for service exports. Advance Authorization — duty-free import for re-export.

India context

Indian D2C brands going international (UAE, US, EU) must register with DGFT first. RoDTEP scrips = direct rupee benefit on every export. Most small brands miss claiming this — leaving ₹0.5-2.5% of export revenue on the table.

Examples

  • A Mumbai handicraft exporter to UAE registers IEC + claims RoDTEP duty credit scrips.
  • A Bangalore SaaS billing US clients via Stripe registers IEC for forex receipts.

FAQ

Is DGFT registration the same as IEC?

IEC is the registration. DGFT is the issuing authority. So 'DGFT registration' = 'IEC application'.

How do I claim RoDTEP?

Auto-credited as scrips when you file shipping bills (export). Scrips are tradable on commodity exchanges or usable for paying customs duty.

Are export licenses required for all goods?

Most goods are freely exportable. Restricted/prohibited categories (defense, dual-use, certain chemicals) require specific authorizations from DGFT.

Related concepts

IECRoDTEPMEISFTPexport incentives

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