Duty Free Import Authorization Scheme, DFIA under Foreign Trade Policy 2015-20

 The information provided here is part of Guide on howtoexport and import 

 

Click here to read Foreign Trade Policy of India 2015-20 (FTP 2015-20) in pdf format:  Foreign Trade Policy 2015-20.pdf

 

DUTY FREE IMPORT AUTHORISATION SCHEME (DFIA)

 

The details of DFIA and its modification to previous Foreign Trade Policy 2014-19 is described under new Foreign Trade Policy of India 2015-20. The extract of Foreign Trade Policy 2015-20 about DFIA Duty Free Import Authorization Scheme is given below:

1EXIM policy OF INDIA 2015-20

DFIA Scheme under FTP 2015-2020

 

(a) Duty Free Import Authorisation is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed / utilised in the process of production of export product, may also be allowed.

(b) Provisions of paragraphs 4.12, 4.18, 4.20, 4.21 and 4.24 of FTP shall be applicable to DFIA also.

 

Duties Exempted and Admissibility of Cenvat and Drawback as per Foreign Trade Policy of India 2015-20



(i) Duty Free Import Authorisation shall be exempted only from payment of Basic Customs Duty.

(ii) Additional customs duty/excise duty, being not exempt, shall be adjusted as CENVAT credit as per DoR rules.

(ii) Drawback as per rate determined and fixed by Central Excise authority shall be available for duty paid inputs, whether imported or indigenous, used in the export product. However, in case such drawback is claimed for inputs not specified in SION, the applicant should have indicated clearly details of such duty paid inputs also in the application for Duty Free Import Authorization, and as per the details mentioned in the application, the Regional Authority should also have clearly endorsed details of such duty paid inputs in the condition sheet of the Duty Free Import Authorization.

 

Eligibility

(i) Duty Free Import Authorisation shall be issued on post export basis for products for which Standard Input Output Norms have been notified.

(ii) Merchant Exporter shall be required to mention name and address of supporting manufacturer of the export product on the export document viz. Shipping Bill / Airway Bill / Bill of Export / ARE-1 / ARE-3.

(iii) Application is to be filed with concerned Regional Authority before effecting export under Duty Free Import Authorisation.

 

Minimum Value Addition

Minimum value addition of 20% shall be required to be achieved under IMPEX Policy 2015-20. For items where higher value addition has been prescribed under Advance Authorisation in Appendix 4C, the same value addition shall be applicable for Duty Free Import Authorisation also.

 

Validity & Transferability of DFIA under EXIM Policy 2015-20 (FTP 2015-20)



(i) Applicant shall file online application to Regional Authority concerned before starting export under DFIA.

(ii) Export shall be completed within 12 months from the date of online filing of application and generation of file number.

(iii) While doing export/supply, applicant shall indicate file number on the export documents viz. Shipping Bill / Airway Bill/ Bill of Export / ARE-1 / ARE-3, Central Excise certified Invoice.

(iv) After completion of exports and realization of proceeds, request for issuance of transferable Duty Free Import Authorisation may be made to concerned Regional Authority within a period of twelve months from the date of export or six months (or additional time allowed by RBI for realization) from the date of realization of export proceeds, whichever is later.

(v) Applicant shall be allowed to file application beyond 24 months from the date of generation of file number as per paragraph 9.03 of Hand Book of Procedures.

(vi) Separate DFIA shall be issued for each SION and each port.

(vii) Exports under DFIA shall be made from from a single port as mentioned in paragraph 4.37 of Handbook of Procedures.

(viii) No Duty Free Import Authorisation shall be issued for an export product where SION prescribes ‘Actual User’ condition for any input.

(ix) Regional Authority shall issue transferable DFIA with a validity of 12 months from the date of issue. No further revalidation shall be granted by Regional Authority.

 

Sensitive Items under Duty Free Import Authorisation as per Import Export Policy 2015-2020

(a) In respect of resultant products requiring following inputs, exporter shall be required to provide declaration with regard to technical characteristics, quality and specification in Shipping Bill:

“Alloy steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings, Solvent, Perfumes / Essential Oil/ Aromatic Chemicals, Surfactants, Relevant Fabrics, marble, Articles made of polypropylene, Articles made of Paper and Paper Board, Insecticides, Lead Ingots, Zinc Ingots, Citric Acid, Relevant Glass fibre reinforcement (Glass fibre, Chopped / Stranded Mat, Roving Woven Surfacing Mat), Relevant Synthetic Resin (unsaturatedpolyester resin, Epoxy Resin, Vinyl Ester Resin, Hydroxy Ethyl Cellulose), Lining Material”.

(b) While issuing Duty Free Import Authorisation, Regional Authority shall mention technical characteristics, quality and specification in respect of above inputs in the Authorisation under Import Export Policy 2015-20 .

 

The above information is a part of Online export import training guide 


Also read:

How to export your product?
How to import your product?
Click here to know HS code of your product
What is the ITC code (Indian Tariff Code) of your product?
12 Major risks and solutions in Imports and Exports
Bank Pre shipment Finance to exporters

 

Common tips to importers of Sugars and Sugar Confectionery       
Tips to importers of Edible preparations of fish,meat,crustaceans etc

 

Tips to importers of Bamboos,Rattans,Reeds,Rushes,pips,Betel leaves, Coconut shell, Rudraksha seeds           
Tips to import Gums,Resins and other vegetable saps and extracts
How to import products of OIL SEEDS, MEDICINAL PLANTS and MEDICINAL STRAW?         
DRY CARGO CONTAINERS          
Conditions of Bank to provide Export Packing Credit to Sub-Suppliers       
Packing credit pre shipment finance to suppliers for exports through other export agencies          
Bank Running Account Facility for Exporters           
Negotiation procedures and formalities of export bills
Non receipt of Cargo Arrival Notice, Can importer sue against shipping company
OBJECTIVES OF CUSTOMS CONTROL for EXPORT GOODS

 

OBL not released OBL not surrendered no telex release
 Payment procedures in Triangular exports
Who is Stevedores
How to import Railway Locomotives,Track Fixtures and Fittings     
Procedures to import Tin and Tin Articles     
How to import Tools, Spoons and Forks of Base Metal
 How to amend BL number in Import General Manifest (IGM)
How is assessable value calculated by customs for imports?

 How is IGM filed under high sea sale?
 Can I import explosives products,matches  
 How to import Starches, Glues, Enzymes   
 Can I import Waxes, Soaps, candles and dental waxes
 Mode of payments in international trade
OBJECTIVES OF CUSTOMS CONTROL for EXPORT GOODS
 OBL not released OBL not surrendered no telex release
 Multiple Country Textile Declaration
 Negotiation procedures and formalities of export bills
 Mode of transport under EX WORKS/FCA/CPT/CIP/DAT/DAP/DDP/FAS/FOB/CFR/CIF
 Material used for testing is eligible for Modvat
Letter of credit
 Maintain quality of goods - a prime factor in exports
Master collect House collect





Comments


KAMAL CHOWDHARY: sir, any circulare are notification issued by yr forum for clubbing of DFIA licences for redemption purpose, please guided to us, how to club DFIA LICENCES.

POOJA SHARMA: This is Pooja Sharma form Distt, Haridwar, Uttarakhand. I read your blog "How to Export Import". Need a little help regarding redemption of Advance Authorization.

A.V.Dharma Rao: One question sir. We are an SEZ unit and have received materials under the cover of ARE-1 with export benefits. Can the Bill of Export be filed in INR or should we file the Bill of export only in USD ?

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers