Duty-Free Import Authorization

  • DFIA Scheme
  • Duty Free Import Authorization is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed / utilized in the process of production of export product.
  • Provisions of paragraphs 4.12, 4.18, 4.20, 4.21 and 4.24 of FTP shall be applicable to DFIA
  • Duty Free Import Authorization Scheme shall not be available for import of raw
    • Duties Exempted
  • Duty Free Import Authorization shall be exempted only from payment of Basic Customs Duty (BCD).
  • Drawback as per rate determined and fixed by Customs authority shall be available for duty paid inputs, whether imported or indigenous, used in the export product. However, in case such drawback is claimed for inputs not specified in SION, the applicant should have indicated clearly details of such duty paid inputs also in the application for Duty Free Import Authorization, and as per the details mentioned in the application, the Regional Authority should also have clearly endorsed details of such duty paid inputs in the condition sheet of the Duty Free Import
    • Eligibility
  • Duty Free Import Authorization shall be issued on post export basis for products for which Standard Input Output Norms have been fixed.
  • Merchant Exporter shall be required 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 export prescribed under the GST rules.
  • Application is to be filed with concerned Regional Authority before effecting export under Duty Free Import.
  • 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.
  • Minimum Value Addition

Minimum value addition of 20% shall be required to be achieved.

  • Validity &Transferability of DFIA

  • Applicant shall file online application to Regional Authority concerned before starting export under the scheme.
  • Export shall be completed within 12 months from the date of online filing of application and generation of file.
  • While doing export/supply, applicant shall indicate file number on the export /supply documents viz. Shipping Bill / / Bill of Export / Tax invoice for supply prescribed under GST.
  • In terms of Para 4.12 of FTP, Wherever SION permits use of either
    • a generic input or (b) alternative input, the specific input together with quantity [which has been used in manufacturing the export product] should be indicated / endorsed in the relevant Shipping Bill / Bill of Export / Tax invoice for supply prescribed under GST rules . Only such inputs may be permitted for import in the authorization in proportion to the quantity of these inputs actually used/consumed in production, within overall quantity against such generic input/alternative
  • In addition, if in any SION, a single quantity has been indicated against a number of inputs (more than one input), then quantities of such inputs to be permitted for import shall be in proportion to the quantity of these inputs actually used/consumed in production and declared in Shipping Bill / Bill of Export / Tax invoice for supply prescribed under GST rules within overall quantity against such group of inputs. Proportion of these inputs actually used/consumed in production of export product shall be clearly indicated in Shipping Bill / Bill of Export / Tax invoice for supply prescribed under GST
  • Separate DFIA shall be issued for each SION 
  • Exports under DFIA shall be made from a single port as mentioned in paragraph 4.37 of Handbook of procedures.
  • Regional Authority shall issue transferable DFIA with a validity of 12 months from the date of issue. No further revalidation shall be granted by Regional
    • Sensitive Items under Duty Free Import Authorization.
  • In respect of following inputs, exporter shall be required to provide declaration with regard to technical characteristics, quality and specification in Shipping Bill:

“Alloy steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings, Solvent, Perfumes / Essential Oil/ Aromatic Chemicals, Surfactants, Relevant Fabrics, Marble, Articles made of Polypropylene, Articles made of Paper and Paper Board, Insecticides, Lead Ingots, Zinc Ingots, Citric Acid, Relevant Glass fiber reinforcement (Glass fiber, Chopped / Stranded Mat, Roving Woven Surfacing Mat), Relevant Synthetic Resin (unsaturated Polyester Resin, Epoxy Resin, Vinyl Ester Resin, Hydroxy Ethyl Cellulose), Lining Material”.

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