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Duty Free Import Authorization (DFIA)

Home Duty Free Import Authorization (DFIA)

DUTY FREE IMPORT AUTHORIZATION SCHEME:

DFIA scheme has been introduced in 2006 under the Foreign Trade Policy, by the Ministry of Commerce and Industry, Government of India as a part of DGFT (Directorate General of Foreign Trade). This scheme replaced the Duty Entitlement Pass Book Scheme.

Basic Customs Duty, Integrated GST, Compensation cess are exempted

WHY DFIA:

  • • To Promote importing of Duty-Free Raw materials used in Exported goods.
  • • To Promote Post Export Incentives to the exporters.
  • • To Support Value addition in manufacturing in India.
  • • To Reduce cost of raw materials used in Manufacturing of Export goods.
  • • To enable import of high-quality Raw materials not available domestically.
  • • To encourage small and medium exporters and promote Make in India initiative.

Eligible entities:

  • • Exporting Manufacturers.
  • • DGFT registered Exporters.
  • • SION enlisted Export Products.
  • • Merchants in Export business.

List of items eligible for DFIA:

  • • Inputs used in Export Products Manufacturing
  • • Oil and Catalysts utilized in Export Product Production Process.
  • • Items specified under Standard input output Norms.
  • • Sensitive items like Alloy steel, Copper alloy, Synthetic Rubber, Bearings, Solvents, Perfumes, Surfactants, Relevant Fabrics, Articles made of polypropylene etc., will be eligible only when the exporter provides declaration regarding their specifications in shipping bill

Non – Eligible Products for DFIA:

  • • Tyres
  • • Raw sugar
  • • Actual user conditions containing Inputs as per SION.
  • • Products under Appendix 4J of FTP like Spices, Tea, Coconut oil and Precious Metals like gold, silver and Platinum.
  • • Fuels can only be imported under specific conditions.

Validity:

12 Months from issuance date within this period the materials need to be imported.

Export obligation: Product need to be exported at first then DFIA can be claimed.

The Export product must show a value addition of 20%.

DFIA is transferable only after customs confirmation, after all export obligations get completed.

Documents required for Application:

  • • Import Export Code
  • • Export invoices
  • • Shipping Bills
  • • Airway Bills
  • • Bills of Lading
  • • SION code of Products
  • • Declarations
  • • Digital signature certificate
  • • GST certificate

SPLIT AUTHORIZATION:

DFIA can be transferred to another importer or supplier based on the requirement of the original applicant. It is possible after post-export obligation completion and issued by the Same Regional Authority which issued the original DFIA with a charge of 1000rs for each split authorization copy.

FOR NON-SION PRODUCTS:

  • • After exporting Non-SION products, Duty refund can be claimed under the Drawback system with Declarations in Shipping bills.
  • • Advance Authorization with self-declared norms can be used to apply for DGFT to ratify norms in order to add that product under the SION list for future use and for DFIA applicability.
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