DGFT Import Export License India | Authorization & Advance License

DGFT Import Export License India Overview

DGFT Import Export License Services in India enable businesses to legally import and export goods under the Directorate General of Foreign Trade (DGFT), Government of India.

This DGFT license is mandatory for any individual or company involved in cross-border trade, as it authorizes import and export activities, ensures compliance with India’s Foreign Trade Policy, and allows businesses to claim duty benefits and government incentives.

Holding a valid DGFT Import Export License India allows businesses to import raw materials at concessional customs duties, export finished goods smoothly, and participate in international trade without regulatory hurdles.

With ComplifyXpert, getting DGFT authorization becomes easy. We handle the paperwork, explain each step clearly, and make sure your import-export compliance is in place.

What is DGFT?

The​ Directorate General Foreign Trade (DGFT) is a component of the Ministry of Commerce and Industry. Its main function is to design and execute India's Foreign Trade Policy.

DGFT is the agency that makes sure the exports and imports are done in a legal and transparent way. It establishes regulations, monitors trade activities, and issues permits for certain product classes.

DGFT​ plays a major role in India's export promotion. It does this by introducing several incentive schemes, reducing duties on essential inputs, granting duty-free import status for the production of exports, and facilitating compliance through digital services. DGFT regulates trade in restricted and sensitive areas by issuing licenses only.

Besides, it is DGFT's core function to cooperate closely with Customs, the RBI, export councils, port authorities, and other departments to ease trade transactions. DGFT, through the coordination of policies among various agencies, eliminates waiting time and ensures that businesses adhere to the standard guidelines.

Types of DGFT Licenses

Under the Foreign Trade Policy, DGFT issues various kinds of licenses for controlling and supporting India's import and export activities.

The first and most basic one is the Importer Exporter Code or IEC which is a one-time registration linked to PAN and is compulsory for all traders.

Besides these, there are common licenses like Advance Authorization that give the facility of duty-free import of the inputs used for exports and EPCG. It allows the import of capital goods at a low or zero rate of duty against export commitments. DFIA is a license given after exports are completed and it allows duty-free import of inputs.

There are some licenses that are specifically designed for sensitive or controlled goods. A Restricted Items License is necessary if your product is related to

• Chemicals
• Wildlife items
• Defense-related goods

SCOMET license is applicable to dual-use items that have strategic importance. Special Import License is a means for the canalized items such as petroleum products.

RCMC is definitely not a license but a compulsory registration with the export promotion councils, which is necessary for claiming benefits and incentives.

Advance Authorization

An advance authorisation is probably the most significant program for manufacturers and merchant exporters who are associated with manufacturers.

It allows the import of raw materials, components, and consumables up to a certain limit without payment of customs duty if they are used in the production of export goods. As import duties can substantially increase manufacturing costs, this program provides significant financial relief.

The Standard Input Output Norms set the number of inputs for this program. These norms guarantee that raw materials are allowed only to the extent necessary for the finished product.

Exporters who take advantage of this scheme must meet an export obligation within the stipulated time. They are also required to maintain a minimum value addition of 15 percent.

Advance Authorization is now available through the DGFT portal in electronic mode. Therefore, processing time is shortened, and there is no need for extensive physical work.

The scheme is useful for industries such as textiles, engineering goods, food processing, pharmaceuticals, and chemicals, where the cost of raw materials accounts for a major share of production expenses.

EPCG Scheme

The export promotion capital goods (EPCG) program helps businesses that need to buy advanced machinery or technology to produce export goods.

What matters most is obtaining the EPCG license to make the most of the EPCG scheme.

Through this program, companies can bring in capital goods with zero or concessional customs duties. Capital goods are the means of production, such as machines, tools, equipment, and technology used in manufacturing.

If the company avails itself of the duty benefits, it must meet an export commitment equal to six times the duty saved. The commitment period is six years.

Due to recent policy changes, the DGFT has simplified documentation requirements and adopted a flexible approach for exporters facing market-related challenges.

Industries that depend on heavy machinery or costly equipment, for instance, the production of automotive components, metal products, textiles, and the manufacturing of electronics, stand to gain the most from the EPCG program.

By reducing upfront costs, the program plays a significant role in facilitating technology upgrades for Indian companies, enabling them to compete in international markets.

DFIA

The​ Duty Free Import Authorization (DFIA) is a document that allows the import of inputs for the production of exported goods without the payment of customs duties.

Unlike the Advance Authorization, DFIA is granted only after exports have occurred. Therefore, it is a post-export scheme that rewards exporters after they have completed their shipments.

The DFIA license permits the import of inputs, such as raw materials, fuel, and catalysts, in accordance with the Standard Input-Output Norms. It also allows a certain percentage of spares.

Besides, one of the main points of DFIA is that it focuses on the exemption from basic customs duty. This is beneficial to exporters as it helps them to lower the cost of their next imports once they have been verified for export performance.

DFIA authorizations can be transferred to another party after the export obligation is fulfilled. Thus, they have an additional commercial value for businesses.

Both merchant exporters and manufacturer exporters can file a request, hence, it is a convenient choice for a wide range of industries.

Restricted Items Under DGFT License

Some​ products necessitate the special sanction of the DGFT as they are of a sensitive nature. These may be products that affect national security, public health, safety, agriculture, the environment, or are related to international treaty obligations. In such situations, the import or export of goods cannot be done freely and must be carried out under a restricted item license.

For example, consider live animals, certain seeds, agricultural products, metal scrap, chemicals, explosives, arms, some medicines, products made from wildlife, plastic waste, and animals or plants that are endangered and listed under global conservation norms.

Usually, the authorization for these licenses is valid for up to 2 years. The DGFT may permit extensions under certain contractual conditions.

Setting limitations on these products is not for the purpose of stopping the trade but to ensure safety, standards, and the protection of the public. Enterprises trading in restricted commodities must comply with the applicable regulations, be ready for inspections, and keep records as directed by the DGFT and other regulatory bodies.

Eligibility Requirements to Get DGFT License

The eligibility of DGFT licenses primarily depends on the specific scheme or authorization that is being requested. However, most applicants have similar requirements. A business should have a valid IEC, PAN, and an active bank account. Besides, it must have a registered office/business address and keep proper records of its business activities.

In the case of Advance Authorization, the applicant should be engaged in the production of export products covered by the Standard Input-Output Norms. They also need to have the capability to maintain the required level of value addition. The applicant for EPCG and DFIA must be willing to fulfill export obligations within the specified time frames.

Individually owned businesses, partnerships, LLPs, private limited companies, and public limited companies are all eligible to apply. Likewise, export houses, merchant exporters, and manufacturers are equally eligible if they comply with the scheme-specific ​regulations.

Businesses must also be prepared to update or correct their details through DGFT modification when necessary in order to ensure that all information is correct and current.

Documents Required for DGFT License

DGFT requests various documents to confirm the company's identity, composition, and authenticity. Common documents include PAN, photograph, GST registration, IEC copy, address proof, and bank details. Also, information about the firm's partners or directors may be required.

If it is an Advance Authorization, additional documents such as purchase orders, manufacturing details, and SION norms may be required. For EPCG, the machine specification and technical information are significant. Every application must be digitally signed with a Class 3 Digital Signature Certificate to authenticate online submissions.
Having the right documents on hand keeps the process moving smoothly and helps secure the necessary approvals more quickly.  Maintaining accurate and comprehensive documentation is crucial for future license renewal processes and guarantees a more seamless approval process.

Application Process of DGFT Import Export License India

The DGFT application process is mostly online and designed to be easy for users. The applicants are required to register on the DGFT portal by using their PAN, mobile number, and email ID. After they log in, they can choose the appropriate service, such as IEC, Advance Authorization, EPCG, or DFIA.

You must give correct information when you are filling out the form, such as ANF-1 or ANF-2N. The applicants must upload the supporting documents to the cloud, pay the fee, and sign their application digitally. Sometimes it is necessary to email a PDF copy of the file to the local authority.

After the filing of the application, the file is sent to the Directorate General Foreign Trade for their inspection. They can ask questions if they need clarification or more details. After that, DGFT sends the authorization by email, which can be downloaded from the portal.

If a physical inspection is required, DGFT may contact the local authorities to make the necessary arrangements.

Modification Process of DGFT License

DGFT permits changes in the details of the license as well as the IEC when there is a change in business information. The changes can be a business name, address, bank details, or the ownership structure of the business, and such changes must comply with the provisions of the foreign trade policy.

Candidates should visit the DGFT portal, select the change service, update the details, and upload the documents confirming the change.

Changes in name or address made voluntarily due to internal decisions generally do not incur a fee. Nevertheless, if the changes result from regulatory requirements, there may be charges. On-time updates keep one in line with the rules, so there will be no problems during customs clearance or audits.

Renewal Process of DGFT License

The​ Importer Exporter Code is a lifetime one. However, it has to be updated annually. Businesses are required to verify or change their information on the DGFT portal by April 30 of every year. Failing to update the account may result in the IEC code being temporarily suspended for non-compliance.

In the same way, feature-linked permissions, such as EPCG, may need renewal or extension if export commitments remain incomplete. A renewal application should be submitted before the expiration date to avoid a fine. Exporters should be on the lookout for all the dates, especially since many schemes have obligations spanning several years.

Get IEC Code, Customs Clearance, and GST Registration Support With ComplifyXpert. We guarantee seamless compliance with your import-export activities, fully aligned with India's export promotion guidelines and import policy.

Export Obligation | DGFT

Export​ obligation is the main tool that the Advance Authorization, EPCG, and DFIA schemes work on. They are the means by which companies that get relief from customs duties are made to contribute to India’s export growth.

Exporters​ under the EPCG scheme have to achieve six times the duty saved in six years, with a minimum of half the obligation being fulfilled in the first four years.

For Advance Authorization and DFIA, export obligations are determined based on standard input-output norms and value-addition requirements.

Exporters must submit annual returns by April 30, maintain shipment records, and ensure that they do not claim overlapping incentives in places where such claims are prohibited.

In the event of non-performance, the consequences may include a fine, the recovery of the duty saved, interest or the cancellation of future benefits.

DGFT also allows for extensions or alternative compliance in exceptional circumstances.

Benefits of Taking DGFT Import Export License

DGFT​ schemes provide several benefits to Indian companies. One of the most effective ways of reducing export production costs is to import goods without having to pay duties.

Under​ the EPCG, new technologies and machinery are easily accessible, which is an excellent means of raising the level of productivity, quality, and international competitiveness.

Through DFIA and Advance Authorization, companies can purchase the necessary inputs at competitive prices.

The various operations are likewise made easier by the DGFT's online portals, which are more convenient for users, require less paperwork, and eliminate the need for many office visits.

The businesses that use such schemes usually get better prices, have a larger presence in international markets, and their profit margins increase.

Several exporters also benefit from the transferability of authorizations, which increases their commercial value.

Indirect savings may also be available to exporters through related mechanisms, such as a duty drawback that reduces overall trade costs.

Besides the monetary benefits, DGFT plays a major role in facilitating eco-friendly, legal, and transparent trading activities in India.

Common Issues Involved in DGFT License

Businesses often encounter issues with their DGFT, including the application and compliance processes. Incomplete paperwork, mistakes in IEC details, or inconsistencies in addresses across different government databases can all result in delays. Failing to update the IEC by April 30 may result in a temporary suspension of the account.

Queries related to value addition, input quantities, and export documentation may be raised for incentive-based schemes. Some goods may be subject to closure at certain ports, requiring additional steps. Problems with Digital Signature Certificate are also frequently mentioned when files are uploaded.

Not submitting annual export obligation reports on time can lead to the imposition of fines. Many exporters have also found it difficult to change their details due to changes in their business structure.

It is very helpful to be punctual in performing the necessary activities, to keep proper records, and to have the correct documents when facing such kinds of problems. In case they are availing any export promotion scheme, exporters should be very fussy about the time limits and other requirements laid down by law.

Why Choose ComplifyXpert to Avail of a DGFT Import/Export License India?

Getting a DGFT Import Export License can feel complicated if you’re new to international trade. ComplifyXpert makes the process simple by guiding you clearly, handling the paperwork, and assuring your business meets all DGFT requirements without stress.

Practical Experience: We have hands-on experience assisting businesses across industries with DGFT registrations and authorizations, helping avoid common errors and delays.

End-to-End Assistance: From application filing to approvals, modifications, and renewals, we manage the complete DGFT process for you.

Clear Query Support: Our team answers your questions promptly in simple language, so you always know what’s happening at each stage.

Compliance-Focused Approach: We ensure your application aligns with DGFT rules and India’s Foreign Trade Policy, reducing the risk of rejection or penalties.

Time-Saving Process: By handling documentation and follow-ups efficiently, we help you obtain your DGFT license faster and with minimal effort.

Apply for DGFT License Today - Fast Track Your International Trade

At ComplifyXpert, we take care of the paperwork and compliance so customs clearance doesn’t slow you down. You also get personal support for export promotion and clear guidance at every step of the application. Let us handle the process while you focus on growing your business. Get started today.