DGFT Consultant’s Role in Export Licensing

India is rapidly expanding its market both nationally and internationally. Earlier, India used to think only in terms of a closed economy, but now it thinks in terms of an open economy. That is why India trades freely internationally, but some products are mostly restricted to trade or export; permission has to be taken from the DGFT to export them, and this is where DGFT consultants come in handy, who help traders in licensing.

From this detailed article, we will understand the role of a DGFT Consultant in export licensing. However, before that, we need to know who DGFT consultants are and what restricted products they handle.

Who Is a DGFT Consultant?

DGFT consultants are highly specialised professionals having vast knowledge of DGFT export rules, regulations, etc. They help businesses to understand DGFT rules and export regulations. The primary role of DGFT consultants is to help exporters with DGFT licensing. It bridges the gap between exporters and licensing and reduces the costly delays of exporters.

Understanding Restricted Industrial Products

The Foreign Trade Policy (FTP) of India classifies products into different categories — free, restricted, prohibited, and canalised. Products categorised as “restricted” are those that cannot be exported without obtaining a specific license from the DGFT. These often include:

High-grade chemicals and solvents
Defence-related equipment and dual-use items
Advanced machinery with potential military applications
Certain electronic components and communication devices
Sensitive raw materials with strategic value

Roles of a DGFT Consultant in Export Licensing

Product Classification

Product classification means that to get a license, first of all, one has to analyze their product to see whether it comes under the restricted products category of DGFT or not. If it does, then he should get the license, but if it does not, then he should avoid it; otherwise, he will have to face a lot of complications in the future. DGFT consultants help a lot in this matter.

DGFT consultants first analyse the nature, type, and usage of the products. After that, they interpret HS (Harmonised System) codes accurately, and then they determine if an item is restricted and requires a license.

Documentation and Application Preparation

After properly analysing the product, it prepares or keeps ready the documents for licensing, which should contain details about the products, company details, etc. Here, the name of the person playing the most important role is DGFT Consultants.

DGFT Consultants ensure that they have proper collation and formatting of required documents, drafting of justifications and project reports for license applications, and compliance with the format and language requirements of DGFT.

Filing of License Application

You have prepared the documents, etc., but what to do with them? For the license, the collected and verified documents will have to be uploaded on the online portals of DGFT, with the help of which traders will be able to get the license for restricted products. If the documents are already ready, then you can track the application status, coordinate with the concerned DGFT regional office, and respond to queries or deficiencies raised during scrutiny.

Handling Objections or Delays

Many times, such cases also come up in which traders or exporters apply for licensing, but if DGFT people find something wrong or something happens, then they object to licensing, due to which traders or exporters face a lot of time delay, and cost also increases, and this is where DGFT consultants enter.

DGFT consultants help traders or exporters because they understand the language of official correspondence, draft precise replies with supporting documentation, and facilitate faster resolution and approval.

Post-Licensing Compliance

Now it is not necessary that if you are exporting restricted products and you have a license, you will not do anything. DGFT also has some rules and regulations that every restricted trader who has a license has to follow. Many traders do not even know that they have to do something, due to which they have to face a lot of problems in the future. To avoid this, DGFT consultants make traders or exporters aware.

DGFT consultants make you aware of interpreting license conditions, ensuring timely submission of utilisation reports, and maintaining compliance records for audits.

Benefits of Hiring a DGFT Consultant

Expertise

DGFT consultants are very expert, especially in this matter; they help traders or exporters by handling very complex situations.

Accuracy

Avoid costly errors in application and documentation

Time-saving

Quicker approvals and less back-and-forth with authorities

Risk Reduction

Ensures legal compliance, reducing the chances of penalties

Strategic Guidance

Insight into future policy changes and risk analysis for exports

Challenges in Export Licensing

Changing regulations

When DGFT gives licenses to restricted products, first they have to follow certain rules and regulations, after which they get the license and those regulations don’t need to be fixed, no, only the regulations are fixed; otherwise, all the regulations keep changing with time, and updates keep coming in them according to the situations.

That is why DGFT consultants try to get the license done as soon as possible, because it is also possible that the license regulations may become stricter than before, which may be difficult to follow, and due in exporters or manufacturers may have to face a lot of problems.

Lack of exporter awareness

Nothing can be done until the exporter himself is aware of the matter. The exporter has to be aware that mostly it happens whenever someone takes help from DGFT consultants or hires them; he leaves everything on the DGFT consultants, due to which, if the work is not done properly and on time, then a lot of problems and losses are caused to him. That is why every exporter should be aware of what he is doing and why he is doing it.

Technical difficulties in portal navigation

There are two types of mistakes: the first one is human-made, and the second one is technical. If it is human made then it can be corrected, but if it is technical, then it takes time to correct it, and sometimes it does not happen at all. That is why it becomes very important to understand the technical terms. For example, after verifying all the documents, we go to upload them on the online portal, but the portal does not run due to the exporters’ documents cannot be verified or go into processing.

Conclusion

There are many products in this global market that can be freely moved or exported, but the products that are either harmful or come under the category of DGFT require a license, and it should be so that all exporters do not export these restricted products. But many complications in this work cannot be solved by the traders, like classifying the products of DGFT, understanding the rules and regulations, verifying the documents and uploading them on the online portals of DGFT, or if any complication comes in between, then understanding and solving it in their own style. DGFT consultants play a very important role in all these works.
If a company’s work is related to export and their products are restricted, then they must take advice from such DGFT consultants, who are experts in all the above points, and also follow them. Because this will avoid any obstruction in between and all the work will be done smoothly, there will be no extra cost and no delay.