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

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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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Indian customs duty, excise duty and service tax changes as per Budget 2015-16


 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.

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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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