DGFT Core Licensing | Advance Authorisation, EPCG, IEC & DFIA Consultants

Exporter tracking a DGFT application online on laptop and phone

Overview

DGFT Licensing at a Glance

The Directorate General of Foreign Trade (DGFT) issues the codes, authorisations and certificates that let you import, export and claim duty benefits. We handle the full lifecycle: application, amendments, export obligation tracking and closure.

Who needs this

First-time exporters and importers who need an IEC and a DSC
Manufacturers importing inputs or machinery duty-free under Advance Authorisation or EPCG
Exporters who need an RCMC, Certificates of Origin or Status Holder recognition
Businesses with older authorisations still waiting for EODC or redemption

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Chapter 4 — Foreign Trade Policy 2023

Advance Authorisation Scheme (AAS)

The Advance Authorisation scheme permits duty-free import of inputs, raw materials, fuel, packaging materials, and catalysts that are physically incorporated into export products. It completely exempts imports from Basic Customs Duty (BCD), IGST, and Compensation Cess.

Our Comprehensive AAS Advisory:

Fresh Authorisation Filing: Precise mapping of import items against export products via ANF-4A on the DGFT digital platform.
SION vs Ad-Hoc Norms: Structuring applications under notified Standard Input-Output Norms or filing for ad-hoc norm determination before the Norms Committee.
Advance Release Orders (ARO) & Invalidations: Procurement of indigenous inputs under GST refund frameworks against Advance Authorisations.
Revalidations & Amendments: Modifying CIF/FOB values, extending import validity, and updating port of registration.
Clubbing of Authorisations: Merging multiple Advance Licences under Paragraph 4.38 of the Handbook of Procedures for consolidated obligation discharge.
EODC / Redemption: Preparation of ANF-4F reconciliation statements, ICEGATE shipping bill mapping, and securing final redemption letters.

Consult on Advance Authorisation →

Key Scheme Parameters (FTP 2023)

Minimum Value Addition	15% (except tea/spices)
Import Validity Period	12 Months from issuance date
Export Obligation (EO) Period	18 Months (extendable)
Pre-import Condition	Subject to Appendix 4J items
Eligible Beneficiaries	Manufacturer-exporters & merchant exporters tied to supporting units

Important for Exporters: Under FTP 2023, automated self-ratification norm schemes are accessible to certified Status Holders without Norms Committee delays.

Chapter 5 — Foreign Trade Policy 2023

Export Promotion Capital Goods (EPCG)

The EPCG scheme facilitates the import of brand-new (or permitted refurbished) capital machinery, equipment, tooling, and spares at zero customs duty. In exchange, the entity assumes a binding commitment to generate foreign exchange.

Our EPCG Lifecycle Management:

Application & Authorization: Technical filing via ANF-5A, nexus certification by Chartered Engineers, and duty calculation audits.
Installation Certificate Compliance: Mandatory submission within 6 months of import completion certified by independent Chartered Engineers or Central Tax authorities.
Block-Wise Monitoring: Tracking the 1st block (50% EO by Year 4) and 2nd block (remaining 50% EO by Year 6) along with maintenance of Average Annual Export baseline.
EO Period Extensions: Filing formal requests for block-wise extensions, composition fee regularisation, or restructuring of obligations.
Indigenous Capital Sourcing: Using EPCG authorizations for domestic machinery procurement under deemed export GST refund mechanisms.
EODC & Bank Guarantee Cancellation: Complete ANF-5B file closure, DGFT redemption issuance, and customs coordination for bond cancellation.

Consult on EPCG Licences →

EPCG Obligation Matrix

Specific Export Obligation

Must export finished goods equivalent to 6 times the duty saved on imported machinery within 6 years from licence issuance date.

Average Export Obligation

Must maintain the historical 3-year average export turnover of identical products over and above the specific obligation throughout the 6-year window.

Green Technology Concession

Under FTP 2023, capital goods imported for green energy, solar, water treatment, and electric mobility enjoy a 25% reduced export obligation (4.5x duty saved).

Statutory Prerequisite

Importer-Exporter Code (IEC) & Digital Signatures

The Importer-Exporter Code (IEC) is a 10-character alphanumeric PAN-based business identification code issued by the DGFT. It is mandatory for any commercial cross-border shipment, customs clearance, and foreign remittance realization in India.

Our Comprehensive IEC & DSC Services:

Fresh Online IEC Registration: Complete digital profile setup with linked bank account verification and immediate certificate issuance.
Mandatory Annual IEC Profile Update: Under Para 2.05 of FTP 2023, every IEC holder must confirm or update details between April to June annually. Non-compliance results in automatic deactivation.
IEC Modifications: Updating branch addresses, director/partner appointments, registered office, bank details, or constitution changes.
IEC Surrender / Delisting: Formal cancellation for winding-up entities or resolving duplicated PAN linkages.
Class 3 DSC Procurement: Government-certified Class 3 Digital Signature Certificates with crypto e-tokens configured specifically for the DGFT, ICEGATE, and TRACES platforms.

Get IEC Assistance →

Documents Checklist for New IEC

✔ Business Entity PAN Card
✔ Proof of Incorporation (COI / Partnership Deed / GST Reg)
✔ Cancelled Cheque with printed entity name & account number
✔ Electricity Bill / Rent Agreement for registered office proof
✔ Aadhaar / Passport of Directors, Partners, or Proprietor
✔ Class 3 DSC or Aadhaar OTP authentication

Processing Timeline: An IEC is usually generated online soon after a complete application is submitted. Most delays come from mismatched PAN, bank or address details, which we check before filing.

Post-Export Transferable Scheme

Duty Free Import Authorisation (DFIA)

DFIA operates under Chapter 4 of FTP 2023. Unlike Advance Authorisation (which is primarily pre-export), DFIA is issued on a post-export basis. Once the export obligation has been fulfilled and verified, the resulting authorisation is freely transferable in the commercial market.

Key Operational Details:

Pre-Export Online Filing: File number generation is required before export shipments commence to link Shipping Bills to the upcoming claim.
SION Requirement: DFIA is available exclusively for items where Standard Input Output Norms are notified. Ad-hoc norms are not permitted.
Minimum Value Addition: Mandates a minimum 20% value addition (higher than AAS's 15%).
Duty Exemption: Exempts Basic Customs Duty (BCD) on imported inputs once transferred.
Using or Transferring DFIA: Advice on using the authorisation for your own imports or transferring it after export obligation is fulfilled.

Explore DFIA Strategy →

DFIA vs Advance Authorisation

Feature	Advance Auth	DFIA
Timing	Pre-export	Post-export
Transferability	Non-transferable	Fully Transferable
Min. Value Add	15%	20%
IGST Exemption	Exempt	BCD Exempt only

Recognition & Clearances

RCMC & Status Holder Recognition

Availing benefits under the Foreign Trade Policy requires valid Registration-cum-Membership Certificates (RCMC) from designated Export Promotion Councils. Status Holder recognition (One-Star to Five-Star Export House) brings procedural facilitation under the Foreign Trade Policy.

What We Handle:

e-RCMC Across 37+ EPCs & Commodity Boards: Digital filing via DGFT unified portal for FIEO, EEPC, APEDA, Pharmexcil, Chemexcil, Texprocil, CLE, etc.
Star Export House Recognition (1★ to 5★): Evaluation of export performance in current plus three preceding financial years and obtaining the prestigious Status Holder Certificate.
Fast-Track Customs Clearances: Green-channel customs facilitation, self-certification of Certificate of Origin under Free Trade Agreements, and priority container scanning.
Preferential Bank Guarantee Waivers: Exemption from compulsory Bank Guarantees under Advance Authorisation and EPCG schemes for certified Status Houses.

Apply for Recognition →

Status House Thresholds (FTP 2023)

Export Category	Export Performance (USD)
One Star Export House ★	$3 Million
Two Star Export House ★★	$15 Million
Three Star Export House ★★★	$50 Million
Four Star Export House ★★★★	$200 Million
Five Star Export House ★★★★★	$800 Million

*MSME / ISO-certified units enjoy double-weightage benefits for One Star recognition.

Origin & Technical Standards

Certificates of Origin & Norms Fixation

Proper origin documentation and accurate input-output calculations are critical for tariff preference in overseas markets and sustainable duty exemption within India.

Services We Provide:

Preferential Certificate of Origin (e-CoO): Digital applications under trade agreements including India-UAE CEPA, India-Australia ECTA, ASEAN-India FTA, SAFTA, and Japan CEPA to deliver zero/reduced tariff entry abroad.
Non-Preferential CoO: Issued through accredited Chambers of Commerce and FIEO for commercial validation of Indian origin.
Norms Fixation before DGFT Norms Committee: Preparing technical engineering dossiers, consumption analysis, and waste percentages for SION ratification.
Review & Modification of Existing SION: Updating historical norms to reflect modern manufacturing yields, automation, or alternative raw material usage.
Free Sale & Commerce Certificates: Regulatory documentation required by foreign health authorities for food, medical devices, and cosmetics exports.

Liaise with Norms Committee →

Why Professional Norms Liaisoning Matters

When export products do not match pre-notified SION, the DGFT issues Advance Authorisations on a "self-declaration" basis. If the Norms Committee subsequently reduces the permitted input ratio, the exporter faces heavy duty recoveries, 15% interest, and potential penalty proceedings.

Our technical engineers and trade advisors prepare robust consumption dockets backed by Chartered Engineer certifications to ensure your input ratios are ratified without cuts.

DGFT Core Licensing & Authorisations