Directorate General of Foreign Trade
Also called: DGFT · Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
The Directorate General of Foreign Trade (DGFT) is the body under the Department of Commerce that frames and runs India's Foreign Trade Policy. The current policy is FTP 2023, in force from 1 April 2023 with no end date. DGFT issues notifications that place each item, identified by its ITC(HS) code (a number in the trade product list), in one of three export or import categories:
- Free: trade is allowed without permission.
- Restricted: trade is allowed only with government permission.
- Prohibited: trade is not allowed at all.
DGFT also runs SCOMET, India's control list of sensitive dual-use goods (goods with both civilian and military uses).
Example
On 10 November 2026, DGFT issued Notification No. 49/2026-27. It moved exports of Lithium-Ion Battery Black Mass (ITC(HS) 85491400) from "Free" to "Prohibited", with immediate effect. Black Mass is the powder made by shredding used batteries. The aim was to keep this material in India for domestic recyclers. Shipments already contracted were covered by the transitional rules in Para 1.05 of FTP 2023.
Don't confuse with
- DGTR (Directorate General of Trade Remedies): also under the Commerce Ministry, set up in 2018. DGTR investigates dumping, subsidies and import surges, and it only recommends duties. The Finance Ministry imposes them. DGFT sets the rules for what may be exported or imported.