DGFT Online Facility for Recording Transfer of DFIA Scrips

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DGFT Online Facility for Recording Transfer of DFIA Scrips

DGFT has created a facility to record the information about the transfer of Duty-Free Import Authorisation (DFIA) scrips to facilitate paperless transactions and improving the ease of doing business. The DGFT’s trade notice dated 25th May 2021 announced that a facility has been created on the New DGFT website to record the information about the transfer of DFIA scrips. The recording of the given information will allow the transferee to apply for ARO/Invalidation against the DFIA Scrip online. The given transfer of DFIA scrips shall be recorded under the relevant module on the DGFT website

Important Announcement for Exporter

  • DGFT announced that the issuance of paper copies of DFIA scrips for EDI Ports shall be discontinued effect from 07.06.2021. However, Security Paper copies of DFIA Scrips shall continue to be issued for Non-EDI Ports.
  • Any transfer of DFIA Scrips issued on or after the June 7th, 2021 date shall be mandatorily recorded in the online system. The record of such transfers shall be mandatory for EDI ports as well as non-EDI Ports.

Duty-Free Import Authorisation (DFIA)

Duty-Free Import Authorization (DFIA) is a scheme under which duty-free import of inputs, fuel, oil, energy sources, the catalyst which is required for the production of export goods is allowed.

  • Under the DFIA scheme, exporters are allowed to import products at zero duty within three years
  • Duty-Free Import Authorization shall be issued on a post export basis only for those products for which Standard Input Output Norms (SION) have been fixed.

Know more about the Duty-Free Import Authorization Scheme

Prescribed Date for Recording Transfer of DFIA Scrips

As mentioned above, any transfer of DFIA Scrips issued on or after June 7th, 2021 date shall be mandatorily recorded in the online system

  • If the DFIA scrip was issued before 07.06.2021 and an ARO/Invalidation is to be requested against the DFIA Scrip, the details of the transfer of the said scrip (if any) would also be required to be recorded in the DGFT online system.
  • If the ARO/invalidation is being requested by the original scrip owner no such record of transfer would be required.
  • If the DFIA scrips were issued before 07.06.2021 and no request for ARO/Invalidation is to be made as on this date or after, the recording of any transfer of the given scrip shall not be mandatory.

Conditions to Transfer the DFIA Scrip

The DFIA scrip owner shall ‘transfer’ the scrip to another IEC in the same manner as was being done by them earlier i.e. as per the independently negotiated terms & conditions between the buyer and the seller.

  • The information about the new owner (transferee) has to be recorded on the DGFT website by the original owner (transferor) before the new owner (transferee) can utilize the scrip to obtain any ARO/ Invalidation.
  • Both transferor and transferee must ensure that transfer information is recorded.
  • After the information is confirmed on the DGFT e-platform, the old owner cannot re-record the transfer, and only the new owner can record and further transfer/retransfer.

Note: It should be noted that unless recorded on the DGFT website, the new owner (transferee) will not be able to utilize the scrip. Therefore, the new owner (transferee) has to ensure that the scrip is recorded in his favor by the old owner (transferor).

Procedure for Recording of Transfer of DFIA

The following guidelines to be followed by the DFIA scrip Owner who wishes to record the transfer of the DFIA scrip to another entity in favor of whom the ‘transfer’ information is to be recorded on the DGFT website.

Procedure for DFIA scrip Owner

  • The DFIA scrip Owner needs to log in to the DGFT website using the user credentials.
DGFT Online Facility for Recording of Transfer of DFIA Scrips - DFIA Login Page
DGFT Online Facility for Recording of Transfer of DFIA Scrips – DFIA Login Page
  • After login to the system, go to Services and select Record Transfer Information followed by DFIA.
DGFT Online Facility for Recording of Transfer of DFIA Scrips - Home Page
DGFT Online Facility for Recording of Transfer of DFIA Scrips – Home Page
  • Search the scrip with Scrip type and Scrip Number for which transfer details are to be recorded with DGFT
DGFT Online Facility for Recording of Transfer of DFIA Scrips - DFIA Transfer
DGFT Online Facility for Recording of Transfer of DFIA Scrips – DFIA Transfer
  • The DFIA scrip owner needs to furnish the IEC number of the receiving firm/company in favor of whom the ‘transfer’ information is to be recorded
  • By clicking on the OTP verification option, OTP will be sent to the IEC’s registered contact number and not to the Applicant’s contact number.
  • Once the OTP is successfully verified, digitally sign the application using Aadhaar e-signing process.
  • The request to record the transfer of the scrip has been successfully submitted to the IEC number of the receiving firm/company (in favor of whom the ‘transfer’ information is to be recorded)

Procedure for DFIA scrip Receiving Entity

The DFIA scrip Receiving Entity needs to log in to the DGFT website using the user credentials.

  • After login into the system, go to Services and select the Requests to Record Transfer Information option.
  • Search the scrip with Request Type as Received Transfer Request, Scrip Type, and Scrip Number for which transfer details are to be recorded in the system.
  • Go to the Actions tab and select Accept or Reject
  • By clicking on the OTP verification option, OTP will be sent to the IEC’s registered contact number and not to the Applicant’s contact number.
  • Once the OTP is successfully verified, digitally sign the application using Aadhaar e-signing process.
  • If Accepted by Receiving Entity, the system will record the transfer information for that DFIA scrip to the new entity and the system will now reflect the ‘current owner’ as Receiving Entity in the View Ownership Details.

Procedure to view Current Ownership of Scrip

For ascertaining the ‘current owner’ of the DFIA as recorded in the DGFT system, the following procedure needs to be followed :

After login into the DGFT Portal, go to Services and select DFIA. By clicking on the View Ownership option, the information will be displayed.

Furnish the IEC Number of the Original owner of the scrip, the DFIA scrip number, scrip issuance dates whose ‘current owner’ is to be obtained, enter Captcha, and click on the show option.

The system will display the basic issuance details of the DFIA; the ‘current owner’ of the scrip
and the transfer history.

Note: It may be noted that if no information on ‘transfer’ has been recorded in the System i.e. till the Scrip is accepted, the ‘current owner’ field will be the same as that of the original owner. In case, information on multiple transfers has been recorded in the System i.e. from IEC number A to B to C, then the current owner field will show the details of the last transfer recorded.

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.