The Schemes Under DEEC/DES

What is Duty Free Import Authorization (DFIA)?

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.
All Provisions of Advance Authorization Scheme shall be applicable in case of DFIA. These Authorizations shall be issued only for products for which Standard Input and Output Norms (SION) have been notified.

Highlights of Duty Free Import Authorization (DFIA)

A minimum 20% value addition shall be required for issuance of such authorization  Items, for which higher value addition is prescribed under Advance Authorization Scheme, shall be applicable.The validity for Imports is 24 Months.
For fuel, import entitlement may be transferred only to companies which have been granted authorization to market fuel by Ministry of Petroleum and Natural Gas.

Utilization of Duty Free Import Authorization (DFIA)

Once export obligation has been fulfilled, request for transferability of Authorization or inputs imported against it may be made before concerned RA. Once, transferability is endorsed, Authorization holder may transfer DFIA or duty free inputs, except fuel and any other item(s) notified by DGFT.Once transferability is endorsed, imports / domestic procurement against authorization or transfer of imported inputs / domestically procured inputs shall be subject to payment of applicable additional customs duty / excise duty.The holder of advance Authorization and DFIA may also source their inputs from indigenous sources. In such cases, the excise duty payable by the indigenous supplier can be exempted. In addition the indigenous supplier can import his own raw material duty free or can even get a drawback.

What you can expect from us?

We assist in assessing the feasibility of the scheme for exports/domestic supplies, planning for maximum benefits, documentation, application preparations, representation and coordination with DGFT and other concerned Government Departments till the finally  Authorization case of domestic procurement we provide assistance in getting necessary invalidations from the authority, for duty free import of second stage raw materials and the Drawbacks wherever applicable.We also assist  in getting the ratification of the norms from the Norms Committee. Finally we can also help in redemption of the Authorization.