DUTY FREE IMPORT AUTHORISATION



DFIA is issued to allow duty free import of inputs, fuel, oil, energy sources, catalyst which are required for production of export product. This scheme is in force from 1st May, 2006.


DFIA shall be issued only for products for which Standard Input and Output Norms (SION) have been notified.


NOTE: Applicant is required to file application to concerned RA before effecting exports under DFIA.


Pre-export Authorisation shall be issued with actual user condition and shall be exempted from payment of BCD, additional customs duty / excise duty, education cess, anti-dumping duty and safeguard duty, if any.


In case of actual user DFIA and where CENVAT credit facility on inputs have been availed for the exported goods, even after completion of export obligation, the goods imported against such DFIA shall be utilized in the manufacture of dutiable goods whether within the same factory or outside (by a supporting manufacturer)


Export Obligation
The period for fulfilment of the export obligation under Advance Authorisation shall be as 36 months.


Value Addition
A minimum 20% value addition shall be required for issuance of such authorisation, except for items in gems and jewellery sector.


Import Validity:
The validity for Imports is 24 Months.


Transferability :
Once export obligation has been fulfilled, request for transferability of Authorisationor inputs imported against it may be made before concerned RA. Once, transferability is endorsed, Authorisation holder may transfer DFIA or duty free inputs, except fuel and any other item(s) notified by DGFT.


However, for fuel, import entitlement may be transferred only to companies which have been granted authorisation to market fuel by Ministry of Petroleum and Natural Gas.

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