DFIA, What does Foreign Trade Policy 2015-20 (FTP 2015-20) say?

The information provided here is part of Export Import Training online

 

Update: 01st  April 2015 – Click here to read Foreign Trade Policy of India 2015-20 (FTP 2015-20)  Foreign Trade Policy 2015-20.pdf

 

Click here to read  about DFIA under Foreign Trade Policy of India 2015-20

 

 

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Foreign Trade Policy 2015-20 (FTP 2015-20) – The impact in Duty Free Import Authorization DFIA.


New foreign trade policy is likely to be declared  on 1st April, 2015.

 

Foreign Trade Policy 2014-19By fixing value addition of 20%, DFIA has been introduced in 2006 to help exporters to boost exports. As per Foreign Trade Policy 2009-14, transferability of authorization/ material imported against the authorization is permitted once after export obligation is completed. As per Foreign Trade Policy, the inputs can be imported either from foreign country or sourced from domestic country on payment of additional duty, once transferability has been endorsed. Necessary operationalization has been effected in 2009 on DFIA under Foreign Trade Policy.

 

Foreign Trade Policy insists Customs department to implement an institutional mechanism to monitor DFIA. Once in three months period, customs need to ensure that users (exporters) meet export obligation, failing which action need to be taken against defaulters - Foreign Trade Policy insists.

 

Foreign Trade Policy on DFIA has also been amended in 2011 in relation to CENVAT credit rebate who availed under dutiable goods.

 

I hope, new Foreign Trade Policy 2015-20 (FTP 2015-20)maintains status quo on DFIA scheme after effecting minor amendments.

 

 

Would you like to add more information about DFIA scheme under Foreign Trade Policy? Would you like to comment about DFIA scheme, whether FTP 2015-20 (FTP 2015-20)maintain status quo?

 

Share your thoughts about DFIA schemes under Foreign Trade Policy.

 

 

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Click here to go back to INDIAN BUDGET 2014-2014 highlights
Excise and Customs - Click here to read complete notification under Budget 2014
Service Tax - Click here to read complete notification under Budget 2014
Bank finance to exporters as pre shipment finance
What is crystallization of export bills? How does delinking of export bills work?
Liquidation of Bank pre shipment finance to exporters
Running account facilities for bank export finance
Pre shipment bank finance to suppliers for exports through other agencies
Conditions to get export loans from banks to sub suppliers
Are construction projects eligible for Bank pre shipment loan?
Bank Packing credit to exporters of Floriculture, Grapes and Other Agro-based Products
What is Bank post shipment credit to exporters?
Period of post shipment credit by bank to exporters

Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

 

 

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Comments


Hiren Chandan: The FTP for the year 2015-20 should be reversed back to the old policy norms when it was introduced in the year 2006. As the new notifications that have come up in 2013 and 14 related to the policy have hampered the exporters in a very harsh way , and the international market being so competitive the margin's of Indian exporters have redused drastically. So i would suggest that inorder to boost exports and the Indian economy the DFIA policy must be rewamped as per the earlier norms and the license must be made freely transferable without any actual user condition and nexus between the exports and the imports

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