Duty Free Import Authorisation (DFIA) is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed/ utilised in the process of production of export product, may also be allowed.
Provisions of paragraphs 4.12, 4.18, 4.20, 4.21 and 4.24 of FTP shall be applicable to DFIA also.
Export of white sugar under DFIA is allowed under SION Sl.No-E 52 till 30.9.2018 and DFIA in such cases shall be issued only on or after 1.10.2019. Such DFIAs shall be valid for imports till 30.9.2021.
DFIA Scheme
Duty Free Import Authorisation (DFIA) is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed/ utilised in the process of production of export product, may also be allowed.
Provisions of paragraphs 4.12, 4.18, 4.20, 4.21 and 4.24 of FTP shall be applicable to DFIA also.
Export of white sugar under DFIA is allowed under SION Sl.No-E 52 till 30.9.2018 and DFIA in such cases shall be issued only on or after 1.10.2019. Such DFIAs shall be valid for imports till 30.9.2021.
Duties Exempted
DFIA 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 DFIA, and as per the details mentioned in the application, the RA should also have clearly endorsed details of such duty paid inputs in the condition sheet of the DFIA.
Duties Exempted
DFIA 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 DFIA, and as per the details mentioned in the application, the RA should also have clearly endorsed details of such duty paid inputs in the condition sheet of the DFIA.
Eligibility
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.
DFIA shall be issued on post export basis for products for which Standard Input Output Norms have been notified.
Application is to be filed with concerned RA before effecting export under DFIA.
No DFIA 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.
Eligibility
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.
DFIA shall be issued on post export basis for products for which Standard Input Output Norms have been notified.
Application is to be filed with concerned RA before effecting export under DFIA.
No DFIA 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.
DFIA Conditions
Applicant shall file Online Application to RA concerned before starting export under DFIA. File Number would
be generated on submission of Application.
Export shall be completed within 12 months from the date of Online Filing of Application and generation of File Number.
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 rules.
In terms of Para 4.12 of FTP, Wherever SION permits use of either (a) 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 Authorisation in proportion to the quantity of these
inputs actually used/consumed in production, within overall quantity against such generic input/alternative input.
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 rules.
Separate DFIA shall be issued for each SION and each port.
Exports under DFIA shall be made from a single port as mentioned in paragraph 4.37 of Handbook of
Procedures. However, separate application shall be made for EDI and non-EDI ports. In case export is made from
a Non-EDI port, separate application shall be made for each non-EDI port.
DFIA Conditions
Applicant shall file Online Application to RA concerned before starting export under DFIA. File Number would
be generated on submission of Application.
Export shall be completed within 12 months from the date of Online Filing of Application and generation of File Number.
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 rules.
In terms of Para 4.12 of FTP, Wherever SION permits use of either (a) 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 Authorisation in proportion to the quantity of these
inputs actually used/consumed in production, within overall quantity against such generic input/alternative input.
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 rules.
Separate DFIA shall be issued for each SION and each port.
Exports under DFIA shall be made from a single port as mentioned in paragraph 4.37 of Handbook of
Procedures. However, separate application shall be made for EDI and non-EDI ports. In case export is made from
a Non-EDI port, separate application shall be made for each non-EDI port.
Minimum Value Addition
Minimum value addition of 20% shall be required to be achieved.
Application of DFIA
Validity of DFIA
RA shall issue transferable DFIA with a validity of 12 months from the date of issue. No further revalidation shall be granted by RA.
Re- Export of Goods
Imported under DFIA Scheme
Goods imported against transferable DFIA found defective or unfit for use
May be re-exported, as per Department of Revenue guidelines. In such cases, if the goods were not put to use after import, a certificate shall be generated by concerned Commissioner of Customs to the extent of 95% of CIF value debited against DFIA containing amount and description of exported goods and the details of original DFIA.
Issuance of a fresh DFIA based on the certificate
Based on the certificate, a fresh DFIA shall be issued by RA concerned. Fresh DFIA, so issued, shall have same port of registration and shall be valid for a period equivalent to balance period available on date of import of
such defective/unfit goods.
Re- Export of Goods
Imported under DFIA Scheme
Goods imported against transferable DFIA found defective or unfit for use
May be re-exported, as per Department of Revenue guidelines. In such cases, if the goods were not put to use after import, a certificate shall be generated by concerned Commissioner of Customs to the extent of 95% of CIF value debited against DFIA containing amount and description of exported goods and the details of original DFIA.
Issuance of a fresh DFIA based on the certificate
Based on the certificate, a fresh DFIA shall be issued by RA concerned. Fresh DFIA, so issued, shall have
same port of registration and shall be valid for a period equivalent to balance period available on date of import of
such defective/unfit goods.
Sensitive Items under DFIA
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 fibre reinforcement (Glass fibre, Chopped / Stranded Mat, Roving Woven Surfacing Mat), Relevant Synthetic Resin (unsaturated Polyester Resin, Epoxy Resin, Vinyl Ester Resin, Hydroxy Ethyl Cellulose), Lining Material”.
While issuing DFIA, RA shall mention technical characteristics, quality and specification in respect of above inputs in the Authorisation.
Sensitive Items under DFIA
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 fibre reinforcement (Glass fibre, Chopped / Stranded Mat, Roving Woven Surfacing Mat), Relevant Synthetic Resin (unsaturated Polyester Resin, Epoxy Resin, Vinyl Ester Resin, Hydroxy Ethyl Cellulose), Lining Material”.
While issuing DFIA, RA shall mention technical characteristics, quality and specification in respect of above inputs in the Authorisation.
Maintenance of Proper Accounts of Import and its Utilization
Original DFIA holder shall maintain a true and proper account of consumption and utilization of duty free imported /domestically procured goods against each authorization as prescribed in Appendix 4H. These records are required to be sent to RA concerned along with request for bond waiver / redemption / discharge of export obligation /transferability. Such records should be preserved for a period of at least three years from date of redemption.
Maintenance of Proper Accounts of Import and its Utilization
Original DFIA holder shall maintain a true and proper account of consumption and utilization of duty free imported
/domestically procured goods against each authorization as prescribed in Appendix 4H. These records are required to be sent to RA concerned along with request for bond waiver / redemption / discharge of export obligation /transferability. Such records should be preserved for a period of at least three years from date of redemption.