The Trade Regulations, Accreditation & Compliance Enablement (TRACE) scheme is administered and operationalised by the Directorate General of Foreign Trade (DGFT) through a clearly defined institutional framework. While policy guidance is provided by the designated Sub-Committee, DGFT remains the central executing authority.
This article explains the role, responsibilities, and operational functions of DGFT in implementing TRACE, strictly as per the notified guidelines.
DGFT as the Nodal Implementing Authority
The TRACE guidelines designate the Export Promotion Mission (EPM) Section at DGFT Headquarters as the nodal authority for:
Operationalisation of TRACE
Day-to-day administration
System management
Financial disbursement
DGFT acts within the statutory framework of the Foreign Trade Policy and allied laws.
Development and Operation of Online Systems
TRACE is implemented through an online-only application framework. DGFT is responsible for:
Designing and maintaining the TRACE application portal
Enabling electronic filing of:
Intent-to-Claim (IC)
Reimbursement Claim (RC)
Integrating IEC, MSME, and bank databases
Ensuring data security and system integrity
Manual or offline submissions are not permitted.
Examination and Processing of Claims
DGFT oversees the processing workflow for TRACE claims. Key responsibilities include:
Consolidation of valid claims on a quarterly basis
Routing claims to jurisdictional authorities
Ensuring uniform application of eligibility criteria
Applying reimbursement rates and ceilings strictly as notified
DGFT does not exercise discretionary powers beyond the guidelines.
Disbursement of Funds
DGFT is responsible for the sanction and release of funds under TRACE. Disbursement features include:
Direct credit to IEC-linked bank accounts
No manual intervention in bank detail entry
Release only after approval of admissible claims
Compliance with annual financial ceilings
This ensures transparency and traceability of public funds.
Operational Support to the Sub-Committee
DGFT provides secretarial and operational support to the Sub-Committee on Export Quality and Technical Compliances. This includes:
Convening Sub-Committee meetings
Placing data and analysis before the Sub-Committee
Implementing approved recommendations
Coordinating with line Ministries and departments
DGFT acts as the execution arm of Sub-Committee recommendations.
Monitoring and Data Management
DGFT is responsible for monitoring TRACE implementation outcomes. Monitoring functions include:
Tracking utilisation of funds
Analysing certification-wise and sector-wise uptake
Identifying procedural bottlenecks
Supporting data-driven refinements
Data generated under TRACE also feeds into policy evaluation.
Facilitation Through Recognised Platforms
DGFT integrates TRACE with recognised national platforms such as:
Bharat Aayat Niryat Lab
Quality Setu
DGFT facilitates system-based validation and prioritised processing where certifications are routed through these platforms, subject to audit safeguards.
Compliance Oversight and Safeguards
DGFT enforces compliance by:
Applying system-based checks
Enabling post-disbursement verification
Initiating recovery and penal action where required
Ensuring adherence to Foreign Trade Policy and allied laws
DGFT’s role is regulatory and administrative, not advisory.
Handling Stakeholder Interface
DGFT acts as the primary interface for stakeholders under TRACE. This includes:
Issuance of Trade Notices and clarifications
Receiving stakeholder feedback
Addressing procedural queries through official channels
Updating guidelines and annexures as notified
Stakeholder engagement is conducted within formal policy processes.
Limitations of DGFT’s Role
DGFT:
Does not relax eligibility or timelines
Does not grant ex-post approvals
Does not override notified provisions
Does not adjudicate disputes outside its statutory remit
All actions are rule-bound and system-driven.
Institutional Significance of DGFT’s Role
DGFT’s centralised role ensures that TRACE:
Is implemented uniformly across India
Maintains audit and financial discipline
Aligns with FTP 2023 objectives
Operates transparently through digital governance
DGFT functions as the institutional backbone of TRACE implementation.
Conclusion
The Directorate General of Foreign Trade plays a pivotal and multi-dimensional role in operationalising TRACE. From system development and claim processing to fund disbursement and monitoring, DGFT ensures that the scheme functions as a credible, transparent, and compliance-focused intervention.
By separating advisory functions from execution and relying on digital systems, DGFT reinforces TRACE’s identity as a structured compliance enablement framework rather than a discretionary support scheme.
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