Question

Q16. Consider the following statements about Directorate General of Foreign Trade (DGFT):

1. The Directorate General of Foreign Trade (DGFT) is the agency of the Ministry of Commerce and Industry of the Government of India.

2. DGFT can prohibit, restrict and regulate exports and imports.

Which of the above statements are correct?

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) None of the above

Answer 1

The correct option is C

c) Both 1 and 2

The Directorate General of Foreign Trade (DGFT) is the agency of the Ministry of Commerce and Industry of the Government of India, responsible for the execution of the import and export Policies of India. It was earlier known as Chief Controller of Imports & Exports (CCI&E) till 1991.

DGFT plays a very important role in the development of trading relations with various other nations and thus help in improving not only the economic growth but also provides a certain impetus needed in the trade industry. For promoting exports and imports DGFT establish its regional offices across the country

Functions and responsibilities of DGFT:

• DGFT entrusted with the responsibility of implementing various policies regarding trade, for example, Foreign Trade Policy.
• DGFT is the licensing authority for exporters, importers, and export and import business.
• DGFT can prohibit, restrict and regulate exports and imports.
• DGFT has important role to issue Notifications, Public notices, Circulars, etc.
• DGFT grant 10 digit IEC (Importer Exporter Code), which is a primary requirement to Import Export
• DGFT introduces different schemes from time to time regarding trade benefits throughout the country.
• DGFT has introduced ITC (HS CODE) schedule-1 for import items in India and Schedule-2 for Export items from India.