Duty Free Import Authorization Scheme (DFIA)

October 02, 2024

Duty Free Import Authorization Scheme (DFIA)

Objective

• This scheme providing duty free inputs on post exports basis as a  replenishment so that export product becomes competitive in the international market.
• DFIA is freely transferable. 

Eligibility Criteria

• Manufacturer Exporter or Merchant exporter tied up with supporting manufacturer is eligible for DFIA on post export basis for the product group under Standard Input Output Norms notified.
• No DFIA is issued where SION do not exist or any input is subject to pre-import condition or with A U condition.
• Minimum Value Addition required is 20%.

Utilization of DFIA or Transfer

• Exporter can use the DFIA for import of raw material required in manufacture of finished product
• If exporter is not interested to use for his own purpose and using locally procured raw material, he can sell it.
• Exporter is free to  sell in open market with premium up to 70 to 80% on duty saved amount.
• The premium cost is exporter’s earning
•  GST to be paid on premium value.