Make DGFT Faster: Timely Decisions Will Eliminate the Crowds

As the Board of Trade meets today to discuss export promotion, free trade agreements and new initiatives, the government's top priority should be to serve existing exporters better. 

It must ensure that businesses are not held back by delays in approvals, licences and other administrative processes.

The Directorate General of Foreign Trade, India's main export facilitation agency, has come under criticism from exporters over a circular that could limit their access to officers handling their cases. Exporters fear the move will make it harder to resolve routine problems at a time when India's exports are facing weak global demand, rising protectionism, stricter non-tariff barriers and growing compliance requirements.

Exporters say they do not visit DGFT unless absolutely necessary. Most applications are filed online. If applications are processed within the prescribed timelines, there would be no crowds at the DGFT offices. Businesses approach DGFT only when licences, authorisations or amendments are delayed, software problems arise, policy provisions need clarification, or import consignments are held up because approvals have not been issued. In such situations, quick access to the officer handling the case is often the only way to prevent disruption to trade.

Exporters have expressed concern over a May 11 circular issued by DGFT. The circular states that exporters, consultants and trade associations should preferably meet only officers of the rank of Additional Director General of Foreign Trade and above.

According to trade representatives, nobody wants to spend time visiting government offices if work is completed on time. "People come only when delays threaten shipments and exports," said one exporter.

Exporters also say that existing grievance mechanisms, including Jan Sunwai and video-conference meetings, have not been effective in resolving pending cases. They are not asking to meet senior officials routinely. Their only demand is to be allowed to explain urgent issues to the concern officer so that cases can be resolved quickly.

DGFT is the backbone of India's export administration. It provides more than 150 online services, including Importer Exporter Codes, Advance Authorisations, EPCG licences, DFIA authorisations, RoDTEP benefits, SCOMET licences, import licences, tariff-rate quotas, export obligation management, policy relaxations and certificate amendments.

Thousands of exporters depend on these services every day to import raw materials, fulfil export orders and meet delivery schedules. Delays in DGFT approvals can disrupt production, delay shipments and even lead to cancellation of export orders.

Suggestions for Improvement
Trade experts have suggested several steps to make DGFT more responsive and exporter-friendly.

First, they recommend the practice of a daily open-house hour at DGFT Headquarters and every Regional Authority. From 1500 IST to 1600 IST every working day, exporters should be able to meet the concerned officers without prior appointments. This would improve accessibility, transparency and accountability while allowing routine problems to be resolved quickly without disrupting normal office work.

Second, if an application remains pending beyond the prescribed service timeline, the case should be automatically escalated through the DGFT portal. A clearly defined escalation ladder, supported by a public dashboard showing pending cases, would improve accountability and ensure delays are monitored by DGFT Headquarters.

Experts have also raised concerns over the functioning of key decision-making committees at DGFT Headquarters. Under the prescribed schedule, each Norms Committee should meet twice every month, which means about 12 meetings should have been held during the current period (Jan-June). However, information on the DGFT website shows that only NC-6 and NC-7 held all 12 meetings. NC-1 and NC-2 held only 7 meetings each, NC-3 held 5, NC-4 held 6, and NC-5 held only 3.

The Policy Relaxation Committee, chaired by the DGFT and one of the most important decision-making bodies, held only five meetings against the expected 12. Similarly, the EPCG Committee held only 3 meetings. These committees decide policy relaxations, fixation of input-output norms, EPCG matters and other authorisation issues that directly affect exporters. Trade experts say they should meet regularly so that approvals are issued without unnecessary delays.

Exporters complain that their emails go unanswered and they do not even know whether they have been received. An acknowledgement and action system would improve confidence.

Trade experts also point to a shortage of regular heads in many DGFT Regional Authorities. Officers holding additional charge are often overburdened and therefore reluctant to take important decisions. Filling these vacancies quickly would help speed up approvals. They also suggest regular inspections and case studies to assess the quality of services actually being delivered to exporters.

Exporters deal with multiple government agencies, including Customs, GST authorities, banks, ports, shipping lines, testing laboratories and regulatory ministries. Delays at any one stage can hold up shipments and even result in cancellation of export orders.

Trade experts argue that DGFT's primary objective should be to facilitate exports by ensuring timely decisions and easy access to the officers handling individual cases.

"A trade facilitation agency should be judged not by how difficult it is to meet its officers, but by how quickly it resolves exporters' problems," an industry expert said.