AUTHORISATIONS
Duty Free Import Authorisation (DFIA)
Review your product, input norms and export records for DFIA related requirements.
Discuss this requirement ↗Duty Free Import Authorisation Scheme (DFIA)
What is DFIA?
Duty Free Import Authorisation 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.
Key Features of DFIA
Post-Export Basis: DFIA is granted after the exporter has successfully completed their export obligations and realized their export earnings.
Transferable Scrip: Unlike some other duty-exemption licenses, a DFIA scrip is freely transferable. If the original exporter does not need to import raw materials, they can sell the license in the open market to other importers.
Minimum Value Addition: Exporters must achieve a mandatory minimum value addition of 20% to qualify for the scheme
Validity & Duty Exemptions: The license is valid for 12 months from the date of issuance. It exempts BCD, but exporters are still responsible for paying the Integrated Goods and Services Tax (IGST) and Compensation Cess.
SION Covered: The DFIA applies exclusively to products that have pre-determined Standard Input-Output Norms (SION) fixed by the DGFT.
For the most up-to-date procedures, guidelines, or to check the SION for your specific export product, you can refer to the official DGFT Advance Authorisation / DFIA Portal.
If you are planning to utilize the DFIA scheme, let me know:
What product do you intend to export?
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YOUR QUESTIONS
Frequently asked questions
Duty Free Import Authorisation Scheme (DFIA)
Q1. What is Duty Free Import Authorisation Scheme (DFIA)?
Duty Free Import Authorisation 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.
Q2. What is minimum value addition required for applying for DFIA file number or Transferable DFIA?
Minimum value addition of 20% is required for applying for DFIA file number or Transferable DFIA.
Q3. Is DFIA benefit given for items procured indigenously?
DFIA Benefit will be given only on Inputs for which Customs Duty has been paid. DFIA Benefit will not be given on Inputs for which drawback is intended to be claimed and for Inputs which are procured indigenously.
Q4. Will DFIA Benefit be given on Inputs for which drawback is intended to be claimed?
DFIA Benefit will be given only on Inputs for which Customs Duty has been paid. DFIA Benefit will not be given on Inputs for which drawback is intended to be claimed and for Inputs which are procured indigenously.
Q5. DFIA split is in terms of value or quantity?
DFIA split will be in terms of value. In the application form, applicant will fill the quantity for split for each item and proportionately value will be calculated for each split authorisation.
Q6. What is the validity period of Transferable DFIA?
Transferable DFIA is valid for the period of 12 months from the date of issue of authorisation.
For applicable policy, forms and current requirements: DGFT Foreign Trade Policy · DGFT application help. Eligibility and filing requirements are assessed for the relevant transaction and policy period.
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