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ORGANISATIONAL SET-UP AND FUNCTIONS

Department of Commerce The Department is headed by a Secretary who is assisted by two Special Secretaries, two Additional Secretaries, ten Joint Secretaries & Joint Secretary level officers and a number of other senior officers. Besides formulating and implementing the Foreign Trade Policy, the Department is also entrusted with responsibilities relating to multilateral and bilateral commercial relations, state trading, export promotion measures and development and regulation of certain export oriented industries and commodities. The subjects under the administrative control of the Department are at Appendix-I. The Department is functionally organized into eight Functional Divisions and its jurisdiction extends over (a) two Attached Offices, (b) eleven Subordinate Offices, (c) ten Autonomous Bodies, (d) several Export Promotion Councils (EPCs), (e) other Organizations, (f) Advisory Bodies and (g) Public Sector Undertakings.

Functional Divisions of the Department

1. Administrative and General Division;

2. Finance Division;

3. Economic Division;

4. Trade Policy Division;

5. Foreign Trade Territorial Division;

6. State Trading & Infrastructure Division;

7. Supply Division;

8. Plantation Division;

(a) Attached Offices

(i) Directorate General of Foreign Trade (DGFT)

This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. It is responsible for implementing the Foreign Trade Policy with the main objective of promoting Indian exports. The DGFT also issues licences to exporters and monitors their corresponding obligations through a net work of 33 Regional Offices. The Regional Offices are located at the following places:

1. Ahmedabad        2. Amritsar

3. Bangalore          4. Baroda (Vadodara)

5. Bhopal               6. Kolkata

7. Chandigarh       8. Chennai

9. Coimbatore      10. Cuttack

11. Dehradun       12. Ernakulam

13. Guwahati        14. Hyderabad

15. Jaipur              16. Kanpur

17. Ludhiana         18. Madurai

19. Moradabad      20. Mumbai

21. New Delhi        22. Panaji

23. Panipat            24. Patna

25. Pondicherry     26. Pune

27. Rajkot               28. Shillong

29. Srinagar            30. Surat

(Functioning at Jammu)

31. Thiruvananthapuram        32. Varanasi

33. Visakhapatnam

All DGFT offices provide facilitation to exporters in regard to developments in the area of international trade i.e. WTO agreements, Rules of Origin and SPS requirements, Anti-dumping issues, etc. to help the exporters to strategize their import and export decisions in an internationally dynamic environment.

(ii) Directorate General of Supplies and Disposals (DGS&D)

The DGS&D, with headquarters at New Delhi, is headed by the Director General. It functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items, procurement of stores, inspection of stores, shipment and clearance of imported stores/cargo. It has three Regional Offices located at Chennai, Mumbai and Kolkata. The functions of DGS&D are carried out through its functional wings and supporting service wings. The functional wings are the Supply Wing and the Quality Assurance (QA) Wing. The supporting service wings include Administration, Vigilance, Complaints and Public Relations, Co-ordination, Internal Work Study, Management Information Services, Litigation etc.

The Supply Wing has commodity-wise Purchase Directorates such as Information Technology, Electrical Stores, Mechanical Engineering, Automobiles, Steel & Cement, Structural Engineering, Hardware, Workshop & Machine Tools, Wool & Leather, Paper & Paper Products, Oil & Chemicals. The handling of commodity-wise work facilitates maintenance of data bank on prices, vendors, specifications, market trends etc. The Quality Assurance Wing has 28 offices /sub centres spread all over the country so that they are near to the trade and users to facilitate better interaction.

The Directorate General of Supplies and Disposals (DGS&D) enters into Rate Contracts (R/Cs) for common user items required on recurring basis by different Departments and /Government Organisations. DGS&D also makes ad-hoc purchases on behalf of different Departments/Government Organisations on their request. The Rate Contracts, as per current policy, are awarded to suppliers registered with DGS&D/NSIC or any other registration authority specified on the date of Tender Opening. For items required by Defence Indentors, registration with Director General (Quality Assurance), Ministry of Defence is required. Further, for safety/difficult/complaint-prone items, NSIC's registration is considered valid only if it has been done after capacity assessment by Quality Assurance Wing of DGS&D.

(b) Subordinate Offices

(i) Directorate General of Commercial Intelligence and Statistics (DGCI&S)

This Directorate, with its office located at Kolkata, is headed by the Director General. It is entrusted with the work of collecting, compiling and publishing/disseminating trade statistics and various types of commercial information required by the policy makers, researchers, importers, exporters, traders as well as overseas buyers. The Directorate brings out a number of publications mainly on inland and coastal trade statistics, revenue statistics, shipping & air cargo statistics, etc which are utilized by the government departments as well as by trading communities and researchers. The foreign trade data generated by the Directorate are disseminated through (i) Monthly Press Release, (ii) Foreign Trade Statistics of India by Principal Commodities & Countries, (iii) Monthly Statistics of Foreign Trade of India, and (iv) Statistics of Foreign Trade of India by Countries. The DGCI&S also maintains a commercial library for the use of the traders, manufacturers, businessmen, industrialists, technologists, government officials, students, teachers and researchers from India and abroad.

(ii) Office of Development Commissioner of Special Economic Zones (SEZs)

The Special Economic Zones (SEZs) are geographically exclusive enclaves separated from domestic tariff areas. The main objective of SEZs is to provide certain common facilities and a duty free environment for exporters. Each Zone is headed by a Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006. Units may be set up in the SEZ for manufacturing, trading or for service activity. The units in the SEZ have to be net foreign exchange earners but they are not subjected to any pre-determined value addition or minimum export performance requirements. Sales in the Domestic Tariff Area from the SEZ units are treated as if the goods are being imported and are subject to payment of applicable customs duties. Seven SEZs, set up by Government of India, are in operation at Kandla (Gujarat), Santa Cruz (Maharashtra), Cochin (Kerala), Noida (U.P), Chennai (Tamil Nadu), Falta (West Bengal) and Visakhapattanam (Andhra Pradesh). In addition, 75 SEZs, set up in the public/private sector, are in operation. Further, 171 SEZs have been given formal approval and these are expected to be notified during 2007.

(iii) Office of the Custodian of Enemy Property (CEP)

The Office of the Custodian of Enemy Property for India is located in Mumbai with a branch office at Kolkata. It functions under the Enemy Property Act, 1968. All immovable and moveable properties all over India belonging to or held by or managed on behalf of Pakistani nationals between 10.9.1965 to 26.6.1977 are vested in the Custodian of Enemy Property for India. Presently, the Custodian manages 2014 immovable properties like land, buildings etc. and movable properties like securities, shares, debentures, bank balances viz. fixed deposits and other amounts lying in the enemy nationals bank accounts, Provident fund balances etc. which include 465 Income cases, 254 Declared, 991 Process and 304 Court cases. In terms of the provisions of the Enemy Property Act, 1968, fees equal to 2 per cent of the income derived from the properties vested in Custodian are levied and credited to the Central Government. The work relating to Enemy Properties including Office of the Custodian of Enemy Property for India, Mumbai is under transfer to Ministry of Home Affairs from Department of Commerce.

(iv) Pay and Accounts Office (Supply)

The payment and accounting functions of Supply Division, including those of DGS&D, are performed by the Chief Controller of Accounts (CCA) under the Departmentalized Accounting System. All payment to suppliers across the country is made through this organisation.

(v) Pay and Accounts Office (Commerce & Textiles)

The Pay and Accounts Office, common to both the Department of Commerce and the Ministry of Textiles, is responsible for the payment of claims, accounting of transactions and other related matters through the four Departmental Pay & Accounts Offices in Delhi, two in Mumbai, two in Kolkata and two in Chennai. These Departmental Pay and Accounts Offices are controlled by the Principal Accounts Office at Delhi with the Chief Controller of Accounts (CCA) as the head of the Department of the Accounts Wing.


(c) Autonomous Bodies

(i) Coffee Board

The Coffee Board was set up under Section (4) of the Coffee Act, 1942. It is the oldest Board under the Department of Commerce. The Board is headed by a Chairman and functions from Bangalore. The Board administers 4 Regional Coffee Research Stations, a Coffee Research Institute, a number of Regional Field Stations and Coffee Demonstration Farms. The primary functions of the Board include formulating and implementing programmes and projects for growth and development of the coffee industry; promoting coffee consumption in India and exports in the international market; supporting research, extension and developmental activities for raising productivity; evolving pest and disease resistant varieties and prescribing and enforcing quality standards at all stages.

(ii) Rubber Board

The Rubber Board was set up under Section (4) of the Rubber Act, 1947. The Board is headed by a Chairman with head quarters at Kottayam. It has 5 Zonal Offices, 41 Regional Offices, a number of Field Stations, Rubber Development Centers and Regional Nurseries. The Board is responsible for the development of the rubber industry by way of assisting and encouraging scientific, technical and economic research; supplying technical advice to rubber growers; training growers in improved methods of planting, cultivation and manuring and collecting statistics from the owners of estates, dealers and manufacturers, etc.

(iii) Tea Board

The Tea Board was constituted as a Statutory Body on 1st April, 1954 under Section (4) of the Tea Act 1953. The Board is headed by a Chairman with head office at Kolkata. As an apex body for the tea industry in India, the Board has fifteen Regional and Sub-Regional Offices spread over different parts of India and three foreign Offices. The primary functions of the Board include rendering financial and technical assistance for cultivation, manufacture, marketing of tea; promoting tea exports; aiding research and developmental activities for augmentation of tea production and improvement of tea quality; encouraging and assisting the unorganized small growers sector financially and technically; collecting and maintaining statistical data and its publication for the benefit of growers, processors and exporters.

(iv) Tobacco Board

The Tobacco Board was constituted as a Statutory Body on 1st January, 1976 under the Tobacco Act, 1975. The Board is headed by a Chairman, with headquarters at Guntur, Andhra Pradesh, and is responsible for the development of the tobacco industry. The Board also has a Directorate of Auctions at Bangalore. The primary functions of the Board include regulating the production and curing of Virginia Tobacco; keeping a constant watch on the Virginia Tobacco market in India and abroad; ensuring fair and remunerative prices to growers; maintaining and improving existing markets and developing new markets abroad by devising appropriate marketing strategies. The Board is entrusted with the tasks of recommending to the Central Government the minimum prices that may be fixed; regulating tobacco marketing in India and abroad with due regard to the interest of growers, manufacturers and dealers; propagating information useful to growers; traders and manufacturers and purchasing Virginia Tobacco from the growers when the same is considered necessary for protecting the interests of growers.

(v) Spices Board

The Spices Board was constituted as a Statutory Body on 26th February, 1987 under the Spices Board Act, 1986. The Board is headed by a Chairman with its head office at Kochi and is responsible for the development of cardamom industry and promoting the export of all the 52 Spices listed in the Spices Board Act, 1986. The primary functions of the Board include increasing the production and productivity of small and large cardamom; development, promotion and regulation of export of spices; assisting and encouraging studies and research for improvement of processing; grading and packaging of spices; striving towards stabilization of prices of spices for export; upgrading quality for export. In regard to cardamom, the Board also provides financial and other assistance for cultivation and processing of cardamom; monitoring prices; increasing domestic consumption; improving marketing; undertaking, assisting or encouraging scientific, technological and economic research and improving quality. The Board also implements programmes for development of exotic and high value spices like Vanilla, Herbal Spices, Organic Spices etc. It also supports programmes aimed at better post harvest practices.

(vi) Export Inspection Council (EIC)

The Export Inspection Council (EIC) was set up as a Statutory Body under Section-3 of the Export (Quality Control and Inspection) Act, 1963 to ensure sound development of export trade of India through Quality Control & Inspection and for matters connected therewith. The Council is an advisory body to the Central Government, with its office located at New Delhi, and is headed by a Chairman. The Executive Head of the EIC is the Director of Inspection & Quality Control who is appointed by the Government and is responsible for the enforcement of quality control and compulsory pre-shipment inspection of various commodities meant for export and notified by the Government under the Export (Quality Control and Inspection) Act, 1963. The Council is assisted in its functions by the Export Inspection Agencies (EIAs), which are field organisations located at Chennai, Delhi, Kochi, Kolkata & Mumbai and have state-of-art laboratories for quality certification activities. These Agencies have a network of 38 sub-offices located at different ports or major industrial centres and work under the technical and administrative control of the Council.

(vii) Indian Institute of Foreign Trade (IIFT)

The Indian Institute of Foreign Trade (IIFT) was registered under the Societies Registration Act, 1860. The Institute, with its head office at New Delhi, is headed by a Director. The Institute has been conferred "Deemed University" status and is engaged in the following activities:

  • Training of personnel in modern techniques of international trade
  • Organising research in problems of foreign trade, marketing research, area surveys, commodity surveys, market surveys and
  • Dissemination of information arising from its activities relating to research and market studies.

(viii) Indian Institute of Packaging (IIP)

The Indian Institute of Packaging (IIP) was registered under the Societies Registration Act, 1860. The Institute, with its office located at Mumbai, is headed by a Director. The main function of the Institute is to undertake research of raw materials for the packaging industry, to organise training programmes on packaging technology and to stimulate consciousness of the need for good packaging etc.

(ix) Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development Authority (MPEDA) was set up as a Statutory Body under an Act of Parliament (No. 13 of 1972). It became functional from 20th April, 1972. The Authority, with its headquarters at Kochi and field offices in all the Maritime States of India, is headed by a Chairman. The Authority is responsible for development of the marine products industry with special focus on marine exports. Besides, it has Trade Promotion Offices at Tokyo (Japan) and New York (USA).

(x) Agricultural and Processed Food Products Export Development Authority (APEDA), New Delhi

The Agricultural and Processed Food Products Export Development Authority (APEDA) was set up as a Statutory Body under an Act of Parliament of 1986. The Authority, with its headquarters at New Delhi, is headed by a Chairman. The Authority has 5 Regional Offices and is entrusted with the task of promoting agricultural exports, including the export of processed foods in value added form.

(d) Export Promotion Councils (EPCs)

Presently there are fourteen EPCs under the administrative control of the Department of Commerce as given in Appendix-II. These Councils are registered as non-profit organisations under the Companies Act/Societies Registration Act. The Councils perform both advisory and executive functions. The role and function of these Councils are guided by the Foreign Trade Policy 2004-09. These Councils are also the registering authorities for exporters under the Foreign Trade Policy 2004-09.

(e) Other Organisations

(i) Federation of Indian Export Organisations (FIEO)

The Federation of Indian Export Organizations (FIEO) is an apex body of various export promotion organisations and institutions with its major Regional Offices located at Delhi, Mumbai, Chennai and Kolkata. It provides the content, direction and thrust to India's global export effort. It also functions as a primary servicing agency to provide integrated assistance to its members comprising professional exporting firms holding recognition status granted by the Government, consultancy firms and service providers. The Federation organizes seminars and arranges participation in various exhibitions in India and abroad. It also brings out `FIEO News', for creating awareness amongst its member exporters and importers.

(ii) Indian Council of Arbitration (ICA)

The Indian Council of Arbitration (ICA) was set up under the Societies Registration Act, 1860. The Council, with its office located at New Delhi, promotes arbitration as a means of settling commercial disputes and popularizes the concepts of arbitration among the traders, particularly those engaged in international trade. The Council, a non-profit service organisation, is a grantee institution of the Department of Commerce and is eligible for assistance under the Marketing Development Assistance (MDA) Scheme of the Department. The main objectives of the Council are to promote the knowledge and use of arbitration and provide arbitration facilities for amicable and quick settlement of commercial disputes with a view to maintaining the smooth flow of trade, particularly, export trade on a sustained and enduring basis.

(iii) Indian Diamond Institute (IDI)

With the objective of enhancing the quality, design and global competitiveness of the Indian Jewellery, the Indian Diamond Institute (IDI) was established as a Society in 1978 with its office located at Surat. The Institute is sponsored by the Department of Commerce and patronized by the Gems and Jewellery Export Promotion Council. The Institute conducted various courses - Graduate Diploma in Diamond Technology (GDDT); Diploma in Cutting & Polishing (DCP); Diploma in Diamond Grading (DDG); Diploma in Diamond Sorting (DDS); Graduate Diploma in Jewellery Designing Manufacturing & Appraising (GJDMA); Higher Diploma in Jewellery Design & Manufacture (HDJDM); Diploma in Model Making (DMK); Diploma in Gemmology (DG); Graduate Diploma in Gems & Jewellery: Home Study; Diploma in Diamond Identification & Grading: Home Study; Diploma in Gemmology : Home Study; FGA & DGA Programmes and Professional Membership. The Institute also has certification services for Diamonds, Coloured Stones and Gold Jewellery IDI's Gem Testing Lab (GTL) which is recognized by Govt. of India as an approved Diamond Grading/Certification Institution, for cut and polished diamonds up to weight of 0.25 carat. It also has an Assaying and Hallmarking Centre (AHMC) which is approved by Bureau of Indian Standards (BIS), Govt. of India. The Institute also has Sardar Vallabhbhai Patel Centre of Jewellery Design and Manufacture (SVJDM) which offers advanced courses in Jewellery Design and Manufacture.

(f) Advisory Bodies

(i) Board of Trade (BOT)

The Board of Trade (BOT) was set up on 5 May 1989 with a view to providing an effective mechanism to maintain continuous dialogue with trade and industry in respect of major developments in the field of International Trade. The Board is headed by a Chairman and its role is to inter- alia advice the Government on measures connected with the Foreign Trade Policy and how to achieve the desired objective of boosting India's exports. The Terms of Reference of the Board are:

  • To advise the Government on Policy measures for preparation and implementation of both short and long term plans for increasing exports in the light of emerging national and international economic scenario;
  • To review export performance of various sectors, identify constraints and suggest industry specific measures to optimize export earnings;
  • To examine the existing institutional framework for imports and exports and suggest practical measures for further streamlining to achieve the desired objectives;
  • To review the policy instruments and procedures for imports and exports and suggest steps to rationalize and channelise such schemes for optimum use;
  • To examine issues which are considered relevant for promotion of India's foreign trade, and to strengthen the international competitiveness of Indian goods and services;
  • To commission studies for furtherance of the above objectives;
  • The Board will meet at least once every quarter and make recommendations to Government on issues pertaining to its terms of reference;
  • The Board will have the power to set up sub-committees and to co-opt experts to these, to make recommendations on specific sectors and objectives.

(ii) Export Promotion Board (EPB)

The Export Promotion Board (EPB) functions under the chairmanship of the Cabinet Secretary to provide policy and infrastructural support through greater coordination amongst concerned Ministries for boosting the growth of exports. All Ministries directly connected with facilitating foreign trade are represented on the Board by their Secretaries. This, inter-alia, includes Secretaries of Department of Commerce; Ministry of Finance; Department of Revenue; Department of Industrial Policy & Promotion; Ministry of Textiles; Department of Agriculture & Cooperation; Ministry of Civil Aviation; Ministry of Surface Transport.

(iii) Inter-State Trade Council

The Inter-State Trade Council was set up on 24th June, 2005 with a view to ensure a continuous dialogue with State Governments and Union Territories which inter-alia advises the Government on measures for providing a healthy environment for international trade in the States with a view to boost India's exports. The Council is represented by Chief Ministers of the States or State Cabinet Ministers nominated by Chief Ministers, Lt. Governors or Administrators of the Union Territories or their nominees, Secretaries of the Departments of Commerce, Revenue, Industrial Policy & Promotion, Agriculture & Cooperation, Shipping, Road Transport & Highways, Ministries of External Affairs and Power, and Chairman, Railway Board. It also co-opts the Chairman-cum-Managing Director of Export Credit Guarantee Corporation, Managing Director of EXIM Bank, Deputy Governor of Reserve Bank of India, Chairman of Agricultural and Processed Food Products Export Development Authority, Chairman of Marine Products Export Development Authority and Presidents of CII, FICCI, FIEO, ASSOCHAM and Export Promotion Council for EOUs/SEZs.

(iv) Directorate General of Anti-Dumping & Allied Duties (DGAD)

The Directorate General of Anti-Dumping & Allied Duties (DGAD) was constituted in April 1998 and is headed by the Designated Authority of the level of Special Secretary to the Government of India who is assisted by a Joint Secretary, Additional Economic Adviser and Adviser (Cost). Besides, there are 12 Investigating and Costing Officers to conduct investigations. The Directorate is responsible for carrying out investigations and to recommend, where required, under Customs Tariff Act, the amount of anti-dumping duty/countervailing duty on the identified articles which would be adequate to remove injury to the domestic industry.

(g) Public Sector Undertakings (PSUs)

The following trading/service corporations are functioning under the administrative control of the Department of Commerce: l State Trading Corporation of India Limited (STC)

  • Minerals & Metals Trading Corporation Limited (MMTC)
  • Projects and Equipment Corporation Limited (PEC)
  • Export Credit Guarantee Corporation of India Limited (ECGC)
  • India Trade Promotion Organisation (ITPO)

The addresses of the Attached/Subordinate Offices, Public Sector Undertakings, Autonomous Bodies and Export Promotion Councils are available at Appendix-II.

Right to Information (RTI) Cell

As a public authority under the Right to Information Act, the Department of Commerce is implementing the Right to Information Act in the right spirit. This Department has appointed 45 Central Public Information Officers (CPIOs) for different Divisions. Similarly 28 organisations under the administrative control of this Department have been treated as public authority under the Right to Information Act. During January-December, 2006, 94 applications have been received by different CPIOs of this Department. Similarly, the appellate committee set up in this Department to consider the appeals has received 25 appeals, during the above period