Last updated: December 17th, 2019 5:06 PM

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

1. 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.
2. 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.
3. 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

1. 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.
2. 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.
3. 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.
4. 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.
5. Separate Duty Free Import Authorization (DFIA) shall be issued for each SION and for each port.
6. It must be noted that export under Duty Free Import Authorization should be made from a single port.
7. 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.