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Duty Free Import Authorization is issued to allow duty free import of products which are Consumed / Utilized in the manufacturing process of Export Product.
The Director General of Foreign Trade (DGFT), by means of Public Notice, can exclude any product(s) from the scheme. The DFIA scheme came into force from 01-05-2006.
The DFIA Authorization shall be issued on Norms of inputs and export items given under the Standard Input and Output Norms (SION). Thus, the Import entitlement must be limited to the quantity mentioned in SION.
DFIA Eligibility:
Authorization shall be issued on Post Export basis for products for which SION have been notified.
DFIA Scheme is also eligible for Merchant Exporter. In that case, the merchant exporter needs to mention name and address of supporting manufacturer of the export product on the export document viz. Shipping Bill/ Bill of Export / Tax Invoice for Exports as prescribed under the GST Laws.
Application needs to be filed with concerned RLA before effecting export under Duty Free Import Authorization.
No Duty-Free Import Authorization shall be issued for an input which is subjected to pre-import condition or where SION prescribes ‘Actual User’ condition or Appendix-4J prescribes pre import condition for such an input. However, this restriction is not applicable for ‘Raw Sugar’ on exports made till 30-9-2018.
Minimum Value Addition:
Under DFIA Scheme, minimum value addition of 20% shall be required to be achieved.
DFIA Scheme Validity and Transferability:
The applicant needs to submit the online application to concerned DGFT Regional Authority before starting the exports, under DFIA Scheme.
The Exporter should complete the exports within 12 months from the date of online application and generation of File Number.
At the time of exports, the Exporter need to mention the File Number on Shipping Bill / Tax Invoice for Supply as per GST Laws.
For each SION, sperate DFIA will be issued by concerned RA.
Regional Authority issues transferable DFIA with a validity period of 12 months from the issuance date. There will be no further Revalidation for DFIA.
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