Professional Documents
Culture Documents
Organizational Set-up
1
CHAPTER
The mandate of the Department of Commerce The Department is functionally organized into
is regulation, development and promotion of the following eight Divisions:
India’s international trade and commerce
1. Administration and General Division
through formulation of appropriate international
trade & commercial policy and implementation 2. Finance Division
of the various provisions thereof. The basic role
of the Department is to facilitate the creation of 3. Economic Division
an enabling environment and infrastructure for 4. Trade Policy Division
accelerated growth of international trade. The
Department formulates, implements and 5. Foreign Trade Territorial Division
monitors the Foreign Trade Policy which provides 6. State Trading & Infrastructure Division
the basic framework of policy and strategy to
be followed for promoting exports and trade. 7. Supply Division
The Trade Policy is periodically reviewed to 8. Plantation Division.
incorporate changes necessary to take care of
emerging economic scenarios both in the The various offices/ organizations under the
domestic and international economy. Besides, administrative control of the Department are:
the Department is also entrusted with (A) three Attached Offices, (B) eleven Subordinate
responsibilities relating to multilateral and Offices, (C) ten Autonomous Bodies, (D) five
bilateral commercial relations, Special Economic Public Sector Undertakings, (E) Advisory Bodies,
Zones, state trading, export promotion & trade (F) fourteen Export Promotion Councils and (G)
facilitation, and development and regulation of other Organizations. A complete list of these
certain export oriented industries and offices/ organizations along with the postal
commodities. The subjects under the addresses is given at Annexure 1.2.
administrative control of the Department are at
The broad organizational set up and major role
Annexure 1.1.
and functions of these bodies are discussed
The Department is headed by a Secretary who below:
is assisted by a Special Secretary & Financial
Adviser, three Additional Secretaries, thirteen
(A) Attached Offices
Joint Secretaries and Joint Secretary level officers (i) Directorate General of Foreign Trade (DGFT)
and a number of other senior officers. Keeping
in view the large increase in workload in matters This Directorate, with headquarters at New Delhi,
related to World Trade Organization (WTO), is headed by the Director General. Keeping in
Regional Trade Agreements (RTAs), Free Trade line with liberalization and globalization and the
Agreements (FTAs), Special Economic Zones overall objective of increasing of exports, DGFT
(SEZs), Joint Study Groups (JSGs) etc, two posts is assigned the role of a “facilitator”. It is
each of Joint Secretaries and Directors were responsible for implementing the Foreign Trade
created in the Department during 2008-09. Policy with the main objective of promoting
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Annual Report 2009-10
India’s exports. The DGFT also issues licenses Rate Contracts for common user items,
to exporters and monitors their corresponding procurement of stores, inspection of stores,
obligations through a network of 35 Regional shipment and clearance of imported stores/
Offices. The Regional Offices are located at the cargo. It has three Regional Offices located at
following places:- Chennai, Mumbai and Kolkata. The functions
of DGS&D are carried out through its functional
1) Ahmedabad 2) Amritsar
wings and supporting service wings. The
3) Bangalore 4) Bhopal functional wings are the Supply Wing and the
Quality Assurance Wing. The supporting service
5) Chandigarh 6) Chennai wings include Administration, Vigilance,
7) Coimbatore 8) Cuttack Complaints and Public Relations, Planning and
Co -ordination, Internal Work Study,
9) Dehradun 10) Ernakulam Management Information Services, Litigation,
11) Guwahati 12) Hyderabad etc.
13) Jaipur 14) Jammu The Supply Wing has commodity-wise Purchase
Directorates such as Information Technology,
15) Kanpur 16) Kolkata Electrical Stores, Mechanical Engineering,
Automobiles, Steel & Cement, Structural
17) Ludhiana 18) Madurai
Engineering, Hardware, Workshop & Machine
19) Moradabad 20) Mumbai Tools, Wool & Leather, Paper & Paper Products,
Oil & Chemicals. The handling of commodity-
21) New Delhi 22) Nagpur
wise work facilitates maintenance of data bank
23) Panaji 24) Panipat on prices, vendors, specifications, market trends,
etc. The Quality Assurance Wing has 26 offices/
25) Patna 26) Puducherry sub-centres (including headquarters) spread all
27) Pune 28) Raipur over the country.
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Role, Functions and Organizational Set-up
Intelligence & Statistics (DGCI&S) is the premier publications on, inter alia, inland and coastal
organization of Govt. of India for collection, trade statistics, revenue statistics, shipping & air
compilation and dissemination of India’s Trade cargo statistics etc, which are utilized by the
Statistics and Commercial Information. This Government Departments as well as by trading
Directorate, with its office located at Kolkata, is communities and researchers. India Trade
headed by the Director General. It is entrusted Journal, a weekly publication, is the premier
with the work of collecting, compiling and publication of DGCI&S. The dynamic pages of
publishing/disseminating trade statistics and the DGCI&S website www.dgciskol.nic.in are
various types of commercial information mainly for online data transmission and provide
required by the policy makers, researchers, access to data under PIS (Priced Information
importers, exporters, traders as well as overseas System).
buyers. DGCI&S collects the basic data from
(ii) Office of Development Commissioner of
different customs formations in the form of DTR
Special Economic Zones (SEZs)
(Daily Trade Return) and then processes and
compiles it using state-of-the-art technology. The main objectives of the SEZ Scheme are
generation of additional economic activity,
The foreign trade data generated by the
promotion of exports of goods and services,
Directorate are disseminated through (i) Monthly
promotion of investment from domestic and
Press Release brought out every month by the
foreign sources, creation of employment
Ministry of Commerce and Industry, (ii) Monthly
opportunities along with the development of
Foreign Trade Statistics of India by Principal
infrastructure facilities. All laws of India are
Commodities & Countries, (iii) Monthly Statistics
applicable in SEZs unless specifically exempted
of Foreign Trade of India (Import & Export), and
as per the SEZ Act/ Rules. Each Zone is headed
(iv) Quarterly Statistics of Foreign Trade of India
by a Development Commissioner and is
by Countries. It also brings out an Assessment
administered as per the SEZ Act, 2005 and SEZ
Report on India’s Foreign Trade by Air, every year.
Rules, 2006. There are currently eight
As far as ancillary statistics is concerned,
Development Commissioners of SEZs. Units may
DGCI&S also compiles and publishes on regular
be set up in the SEZ for manufacturing, trading
basis the Inland Trade Statistics covering Inter-
or for service activity. The units in the SEZ have
State Movements of Goods by Rail, River and
to be net foreign exchange earners but they are
Air, Statistics on India’s Customs and Excise
not subjected to any predetermined value
Revenue Collections (according to the tariff
addition or minimum export performance
heads), Shipping Statistics, Inland Coastal Trade
requirements. Sales in the Domestic Tariff Area
Statistics and Selected Statistics of Foreign Trade
from the SEZ units are treated as if the goods
of India.
are being imported and are subject to payment
DGCI&S foreign data processing system is built of applicable customs duties.
on ORACLE database and SUN ULTRA E-450
(iii) Pay and Accounts Office (Supply)
system. Its computer system is having networking
facilities both in-house and with outside world. The payment and accounting functions of Supply
There are two SUN M4000 database Servers Division, including those of DGS&D, are
and two SUN T2000 Application Servers with performed by the Chief Controller of Accounts
adequate storage and tape drives. A dedicated (CCA) under the Departmentalized Accounting
512 kbps leased line installed is being used to System. Payment to suppliers across the country
receive the DTR data online from computerized is made through this organization.
Customs houses. Along with this, some direct
Broadband lines are also available to support (iv) Pay and Accounts Office (Commerce &
the lease line. Textiles)
The Directorate brings out a number of The Pay and Accounts Office, common to both
the Department of Commerce and the Ministry
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Annual Report 2009-10
of Textiles, is responsible for the payment of Body on 1st April, 1954 under Section (4) of the
claims, accounting of transactions and other Tea Act, 1953. The Board is headed by a
related matters through the four Departmental Chairman with head office at Kolkata. As an
Pay & Accounts Offices in Delhi, two in Mumbai, apex body for the tea industry in India, the Board
two in Kolkata and two in Chennai. These has two Zonal Offices at Guwahati and Coonoor
Departmental Pay and Accounts Offices are and 13 Regional Offices spread over different
controlled by the Principal Accounts Office at parts of India, one Research Centre at Kurseong
Delhi with the Chief Controller of Accounts (CCA) (Darjeeling) and three foreign offices in London,
as the Head of the Department of the Accounts Moscow and Dubai. The primary functions of
Wing. the Board include rendering financial and
technical assistance for cultivation, manufacture,
(C) Autonomous Bodies marketing of tea; promoting tea exports; aiding
(i) Coffee Board research and developmental activities for
augmentation of tea production and
The Coffee Board was set up under Section (4) improvement of tea quality; encouraging and
of the Coffee Act, 1942. The Board is headed assisting the unorganized small growers sector
by a Chairman and functions from Bangalore. financially and technically and collecting &
The Board administers four Regional Coffee maintaining statistical data and its publication
Research Stations, a Coffee Research Institute, for the benefit of growers, processors and
a number of Regional Field Stations and Coffee exporters.
Demonstrations Farms. The primary functions
of the Board include formulating and (iv) Tobacco Board
implementing programmes and projects for The Tobacco Board was constituted as a Statutory
growth and development of the coffee industry; Body on 1st January, 1976 under Section (4) of
promoting coffee consumption in India and the Tobacco Act, 1975. The Board is headed
exports in the international market; supporting by a Chairman with headquarters at Guntur,
research; extension and developmental activities Andhra Pradesh, and is responsible for the
for raising productivity; evolving pest and disease development of the tobacco industry. The Board
resistant varieties; and prescribing and enforcing also has a Directorate of Auctions at Bangalore
quality standards at all stages. and 18 Auction platforms across the states of
(ii) Rubber Board Andhra Pradesh and Karnataka. The primary
functions of the Board include regulating the
The Rubber Board was set up under Section (4) production and curing of Virginia Tobacco;
of the Rubber Act, 1947. The Board is headed keeping a constant watch on the Virginia
by a Chairman with head quarters at Kottayam. Tobacco market in India and abroad; ensuring
It has five Zonal Offices, thirty nine Regional fair and remunerative prices to growers;
Offices, a number of Field Stations, Rubber maintaining and improving existing markets and
Development Centers and Regional Nurseries. developing new markets abroad by devising
The Board is responsible for the development appropriate marketing strategies. The Board is
of the rubber industry by way of assisting and entrusted with the task of recommending to the
encouraging scientific, technical and economic Central Government the minimum prices that
research; supplying technical advice to rubber may be fixed; regulating tobacco marketing in
growers; training growers in improved methods India with due regard to the interest of growers,
of planting, cultivation and manuring and manufacturers and dealers; propagating
collecting statistics from the owners of estates, information useful to growers, traders and
dealers, manufacturers. manufacturers and purchasing Virginia Tobacco
(iii) Tea Board from the growers when the same is considered
necessary for protecting the interests of growers.
The Tea Board was constituted as a Statutory During the year 2009-10, a “Tobacco Board’s
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Role, Functions and Organizational Set-up
Growers’ Welfare Fund”, has been created to (vi) The Marine Products Export Development
implement the “Tobacco Board’s Growers’ Authority (MPEDA)
Welfare Schemes”, with one time contribution
The Marine Products Export Development
of Rs.17.536 crores by the Tobacco Board. This
Authority was set up as a Statutory Body in 1972
will be subject to the contribution from growers
under an Act of Parliament (No.13 of 1972).
and the Tobacco Board in the ratio of 1:2. A
The Authority, with its headquarters at Kochi and
rehabilitation package to Flue Cured Virginia
field offices in all the Maritime States of India, is
(FCV) tobacco farmers who wish to shift out of
headed by a Chairman/Chairperson. The
tobacco cultivation is also being contemplated.
Authority is responsible for development of the
(v) Spices Board marine industry with special focus on marine
exports. Besides, it has Trade Promotion Offices
The Spices Board was constituted as a Statutory
at Tokyo (Japan) and New York (USA).
Body on 26th February, 1987 under Section (3)
of the Spices Board Act, 1986. The Board is (vii) Agricultural and Processed Food Products
headed by a Chairman with its head office at Export Development Authority (APEDA)
Kochi and is responsible for the development of
The Agricultural and Processed Food Products
cardamom industry and promoting the export
Export Development Authority (APEDA) was
of all the 52 Spices listed in the Spices Board
established in 1986 as a Statutory Body under
Act, 1986. The primary functions of the Board
an Act of Parliament. The Authority, with its
include increasing the production and
headquarters at New Delhi, is headed by a
productivity of small and large cardamom;
Chairman. The Authority has five Regional
development, promotion and regulation of
Offices at Guwahati, Hyderabad, Kolkata,
export of spices; granting certificate for export
Bangalore & Mumbai and is entrusted with the
of spices; undertaking programmes and projects
task of promoting agricultural exports, including
for promotion of export of spices (like setting up
the export of processed foods in value added
of spices parks, support of infrastructure
form. APEDA has also been entrusted with
improvement in spices processing etc.); assisting
monitoring of export of 14 agricultural and
and encouraging studies and research for
processed food product groups listed in the
improvement of processing, grading and
Schedule to the APEDA Act. APEDA has been
packaging of spices; striving towards
actively engaged in the development of markets
stabilization of prices of spices for export and
besides upgradation of infrastructure and quality
controlling and upgrading quality for export
to promote the export of agro products. In its
(including setting up of regional quality
endeavour to promote agro products, APEDA
evaluation labs and training centers). In regard
provides financial assistance to the registered
to cardamom, the Board also provides financial
exporters under its Schemes for Market
and other assistance for cultivation and
Development, Infrastructure Development,
processing of cardamom; monitoring prices;
Quality Development, Research and
increasing domestic consumption; improving
Development and Transport Assistance. During
marketing; registering and licensing brokers
the year 2009-10, APEDA has been empowered
(including auctioneers), e-auction system;
by an Act of Parliament to enforce the Intellectual
undertaking, assisting or encouraging scientific,
Property Right (IPR) of Geographical Indications
technological and economic research and
(GI) for Basmati Rice.
improving quality. The Board also implements
programmes for development of spices in NE (viii) Export Inspection Council (EIC)
region and organic spices in the country; it also
supports programmes aimed at better post The Export Inspection Council was set up as a
harvest practices. Statutory Body on 1st January, 1964 under
Section 3 of the Export (Quality Control and
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Annual Report 2009-10
Inspection) Act, 1963 to ensure sound in May, 1966 under the Societies Registration
development of export trade of India through Act, 1860. The Institute, with its office located
quality control and inspection and for matters at Mumbai and branch offices at Delhi, Chennai,
connected therewith. The Council is an advisory Kolkata and Hyderabad, is headed by a Director.
body to the Central Government, with its office The main function of the Institute is to undertake
located at New Delhi and is headed by a research on raw materials for the packaging
Chairman. The Executive Head of the EIC is the industry, organize training programmes on
Director of Inspection & Quality Control who is packaging technology, consultancy services on
responsible for the enforcement of quality control packaging problems and stimulate
and compulsory pre-shipment inspection of consciousness of the need for good packaging.
various commodities meant for export and
notified by the Government under the Export (D) Public Sector Undertakings (PSUs)
(Quality Control and Inspection) Act, 1963. The (i) State Trading Corporation of India Limited
Council is assisted in its functions by the Export (STC)
Inspection Agencies (EIAs), which are field
organizations located at Chennai, Delhi, Kochi, STC was set up on 18th May, 1956, primarily
Kolkata and Mumbai and have state-of-art and with a view to undertake trade with East
accredited laboratories with the required logistic European Countries and to supplement the
support for quality certification activities. These efforts of private trade and industry in developing
Agencies have a network of thirty six sub-offices exports from the country. STC has played an
and laboratories located at different ports or important role in country ’s economy by
major industrial centres to back up the pre- arranging imports of essential items of mass
shipment inspection and certification activities. consumption (such as wheat, pulses, sugar, etc.)
into India and developing exports of a large
(ix) Indian Institute of Foreign Trade (IIFT) number of items from India. The core strength
The Indian Institute of Foreign Trade was of STC lies in handling exports/ imports of bulk
registered in May, 1963 under the Societies agro commodities. During past 4-5 years, STC
Registration Act, 1860. The Institute, with its has diversified into exports of steel raw materials,
head office at New Delhi and one regional gold jewellery and imports of bullion,
branch at Kolkata, is headed by a Director. The hydrocarbons, minerals, metals, fertilizers,
Institute has been conferred “Deemed petro-chemicals, etc. Achieving record breaking
University” status and is engaged in the following performances year-after-year, STC is today able
activities:- to structure and execute trade deals of any
magnitude, as per the specific requirement of
Conducting academic courses leading to its customers.
issue of degrees in International Business &
Export Management; STCL Ltd. is a subsidiary of STC. It was initially
established in 1982 as Cardamom Trading
Training of personnel in international trade; Corporation Ltd., a Government of India
Organizing research on issues in foreign undertaking under the Ministry of Commerce &
trade, marketing research, area surveys, Industry. The company developed from a solely
commodity surveys, market surveys; and cardamom trading corporation to become
Spices Trading Corporation Ltd., in 1987. With
Dissemination of information arising from globalization and opening of trade world over,
its activities relating to research and market Spices Trading Corporation Ltd. was renamed
studies. as STCL Ltd. STCL became a wholly owned
subsidiary of the State Trading Corporation of
(x) Indian Institute of Packaging (IIP)
India Ltd. in 1999. STCL is involved in import,
The Indian Institute of Packaging was registered export and domestic trading of a varied range
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Role, Functions and Organizational Set-up
of products, both agricultural as well as non- Keeping in view the wider role played by the
agricultural. STCL, headed by a Chairman, is Corporation, the name was changed to Export
headquartered in Bangalore. Credit Guarantee Corporation of India Ltd.
(ECGC). The ECGC is the premier organization
(ii) MMTC Limited in the country, which offers credit risk insurance
The MMTC Limited (Minerals and Metals Trading cover to exporters, banks, etc. The primary
Corporation) was created in 1963 as an objective of the Corporation is to promote the
individual entity on separation from State Trading country’s exports by covering the risk of export
Corporation of India Ltd. primarily to deal in on credit. It provides (a) a range of insurance
exports of minerals and ores and imports of non- covers to Indian exporters against the risk of non-
ferrous metals. In 1970, MMTC took over realization of export proceeds due to commercial
imports of fertilizer raw materials and finished or political causes and (b) different types of
fertilizers. Over the years import and exports of guarantees to banks and other financial
various other items like steel, diamonds, bullion, institutions to enable them to extend credit
etc. were progressively added to the portfolio of facilities to exporters on liberal basis.
the company. Keeping pace with the national (v) India Trade Promotion Organization (ITPO)
economic development, MMTC over the years
has grown to become the largest trading India Trade Promotion Organization has been
organization in India. formed by merging erstwhile Trade Development
Authority (TDA) with Trade Fair Authority of India
(iii) PEC Limited (TFAI) with effect from 1st January, 1992. India
The PEC Ltd (Project and Equipment Corporation Trade Promotion Organization is the premier
of India) was carved out of the STC in 1971-72 trade promotion agency of India and provides
a broad spectrum of services to trade and
to take over the canalized business of STC’s
industry so as to promote India’s exports. These
railway equipment division, to diversify into turn-
services include organization of trade fairs and
key projects especially outside India and to aid
exhibitions in India and abroad, Buyer-Seller
& assist in promotion of exports of Indian
Meets, Contact Promotion Programmes apart
engineering equipment. With effect from 23rd
from information dissemination on products and
May, 1990, PEC became a subsidiary of the then
markets.
newly formed Holding Company, Bharat
Business International Ltd. Thereafter, from 27th (E) Export Promotion Councils (EPCs)
March, 1991, PEC became an independent
Presently, there are fourteen Export Promotion
company directly owned by Government of
Councils under the administrative control of the
India. The main functions of PEC Ltd. includes
Department of Commerce. Names and
export of projects, engineering equipment and
addresses of these Councils are given in
manufactured goods, defence equipment &
Annexure 1.2. These Councils are registered
stores; import of industrial raw materials, bullion
as non-profit organizations under the
and agro commodities; consolidation of existing
Companies Act/ Societies Registration Act. The
lines of business and simultaneously developing Councils perform both advisory and executive
new products and new markets; diversification functions. The role and functions of these
in export of non-engineering items eg. Coal & Councils are guided by the Foreign Trade Policy,
coke, iron ore, edible oils, steel scraps, etc.; and 2009-14. These Councils are also the
structuring counter trade/ special trading registering authorities for exporters under the
arrangements for further exports. Foreign Trade Policy 2009-14.
(iv) Export Credit Guarantee Corporation of
(F) Advisory Bodies
India Limited (ECGC)
The Corporation was established in 1957 as the (i) Board of Trade (BOT)
Export Risk Insurance Corporation of India Ltd. The Board of Trade was set up on 5th May, 1989
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Annual Report 2009-10
Box 1.1
Terms of reference of the Board of Trade
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 channelize 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; and
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Role, Functions and Organizational Set-up
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Annual Report 2009-10
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Role, Functions and Organizational Set-up
Annexure 1.1
Work Allocated to Department of Commerce in accordance with the
Allocation of Business Rules, 1961
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Annual Report 2009-10
Indian Institute of Foreign Trade and Indian Directorate General of Supplies and
Institute of Packaging. Disposals.
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Role, Functions and Organizational Set-up
Annexure 1.2
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Annual Report 2009-10
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Role, Functions and Organizational Set-up
10. Sport Goods Export Promotion Council, 5. National Centre for Trade Information,
1-E/6, Swami Ram Tirth Nagar, NCTI Complex,
Jhandewalan Extension, Pragati Maidan,
New Delhi – 110 055. New Delhi – 110 001.
12. Pharmexcil
101, Aditya Trade Centre,
Ameerpeth,
Hyderabad - 500 038.
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Annual Report 2009-10
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