Duty Free Import Authorization Scheme

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

Eligibility Criteria For Duty Free Import Authorization

Duty Free Import Authorization shall be issued on post export basis only for those products for which Standard Input Output Norms (SION) has been fixed.
In case of merchant exporter, it is mandatory to mention the name and address of supporting manufacturer of the export goods on the export documents like ARE-1, ARE-3, Shipping Bill, Airway Bill, Bill of Export etc.
Application for Duty Free Import Authorization is to be filed with the concerned Regional Authority before effecting export of products.

Criteria For Minimum Value Addition

The minimum value addition of 20% is mandatory to be required to be achieved. However, Appendix 4C of the Advance Authorization prescribes items which required higher value addition, for such listed items such higher value addition shall be applicable for Duty Free Import Authorization.

Steps To Be Followed For Duty Free Import Authorization

An online application is to be filed by the applicant to regional authority before starting export under Duty Free Import Authorization. File number would be generated on submission of the application.
It is mandatory to complete the export within a period of 12 months from the date of online filing of an application for Duty Free Import Authorization.
At the time of export of products, it is mandatory for the applicant to mention the file number on the export documents like ARE-1, ARE-3, Shipping Bill, Airway Bill, Bill of Export etc.
On completion of export and realization of proceeds, the applicant can request for issuance of transferable Duty Free Import Authorization to the concerned Regional Authority. Such a request should be done within a period of 12 months from the date of export or within a period of 6 months from the date of realization of export proceeds, whichever is later.
Separate Duty Free Import Authorization (DFIA) shall be issued for each SION and for each port.
It must be noted that export under Duty Free Import Authorization should be made from a single port.
Duty Free Import Authorization shall not be issued for the export of products where SION prescribes Actual User condition for any input.

Validity Of Duty Free Import Authorization

Duty Free Import Authorization issued by the regional authority shall be valid for the period of 12 months from the date of issue.

Domestic Procurement Of Inputs

Instead of direct import, the holder of Duty Free Import Authorization can obtain inputs from the domestic supplier. Procurement of domestic inputs can be done against Advance Release Order or Invalidation letter. Also, the validity of Advance Release Order or Invalidation letter would be co-terminous with the validity of Duty Free Import 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.