Duty-Free Import Authorization Scheme

The Duty-Free Import Authorization (DFIA) scheme allows the duty-free import of inputs, including fuel, oil, energy sources, and catalysts necessary for the production of export goods. This initiative is crucial for facilitating international trade and supporting exporters in India.

Eligibility Criteria for Duty-Free Import Authorization

The Duty Free Import Authorization is issued post-export only for products with established Standard Input Output Norms (SION).
Merchant exporters must state the name and address of the supporting manufacturer of the export goods on documentation such as ARE-1, ARE-3, Shipping Bill, Airway Bill, and Bill of Export.
Applications for Duty-Free Import Authorization must be submitted to the concerned Regional Authority before exporting products.

Criteria for Minimum Value Addition

A minimum value addition of 20% is required. However, Appendix 4C of the Advance Authorization specifies items needing higher value addition. For such items, this higher value addition is applicable under the DFIA scheme.

Steps to be Followed for Duty-Free Import Authorization

Applicants must file an online application with the regional authority before starting exports under Duty-Free Import Authorization. A file number will be generated upon submission.
Exports must be completed within 12 months from the date of the online application filing.
During export, the file number must be included on export documents such as ARE-1, ARE-3, Shipping Bill, Airway Bill, and Bill of Export.
Upon completing exports and receiving funds, applicants can request a transferable Duty-Free Import Authorization from the Regional Authority. Requests should be made within 12 months from the export date or 6 months from the funds receipt date, whichever is later.
Separate Duty-Free Import Authorizations are issued for each SION and for each port.
Exports under Duty-Free Import Authorization must be made from a single port.
Duty-Free Import Authorization is not issued for exports where SION mandates an Actual User condition for any input.

Validity of Duty-Free Import Authorization

The Duty-Free Import Authorization issued by the regional authority is valid for 12 months from the date of issuance, ensuring ample time to complete necessary imports under the scheme.

Domestic Procurement of Inputs

Holders of Duty-Free Import Authorization can obtain inputs from domestic suppliers instead of importing directly. Domestic inputs can be procured against an Advance Release Order or Invalidation letter, which aligns with the validity of the authorization.

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Frequently Asked Questions

Common questions about Duty Free Import Authorization Scheme Compliance and Criteria.

The Duty Free Import Authorization scheme allows duty-free import of inputs, fuel, oil, energy sources, and catalysts required for the production of export goods. It is issued on a post-export basis for products with Standard Input Output Norms (SION) fixed by the government.

To be eligible for the DFIA scheme, it is mandatory to mention the name and address of the supporting manufacturer of the export goods on the export documents like ARE-1, ARE-3, Shipping Bill, Airway Bill, Bill of Export, etc., in case of a merchant exporter.

The minimum value addition of 20% is mandatory to be achieved under the DFIA scheme. However, certain items listed in Appendix 4C of the Advance Authorization require a higher value addition, and such higher value addition shall be applicable for those items.

An online application must be filed with the concerned Regional Authority before starting export under the DFIA scheme. The applicant must complete the export within 12 months from the date of online filing and mention the file number on the export documents.

After completing the export and realizing the proceeds, the applicant can request the issuance of a transferable DFIA to the concerned Regional Authority within 12 months from the date of export or 6 months from the date of realization of export proceeds, whichever is later.

Yes, separate DFIAs shall be issued for each SION and for each port, and export under DFIA should be made from a single port. Additionally, DFIA shall not be issued for the export of products where SION prescribes the Actual User condition for any input.

The DFIA issued by the Regional Authority is valid for 12 months from the date of issue.

Yes, instead of direct import, the holder of the DFIA can obtain inputs from domestic suppliers against Advance Release Order or Invalidation letter, which are valid co-terminous with the validity of the DFIA.

Yes, it is mandatory to complete the export within 12 months from the date of online filing of the application for the DFIA.

Yes, the DFIA issued by the Regional Authority is transferable, allowing the holder to transfer it to another party if needed.