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DFIA PPT.pptx

sachinkumar17687
DFIA(DUTY FREE IMPORT AUTHORIZATION) SCHEME:
Submitted by: Sachin Kumar Arya Samarth Thakar Sahil Jain Shimson Sarungbam
Scheme:
DFIA is issued to allow duty free import of inputs, fuel, oil, energy sources, catalyst which are required for production of export product.
DGFT, by means of Public Notice, may exclude any product(s) from purview of DFIA.
This scheme is in force from 1st May, 2006.
AAS v/s DFIA:
  • AAS:
  • Advance authorization or material imported against it cannot be transferred even after completion of export obligation.
  • Advance authorization are also available for annual requirement under SION as well as on self-declaration basis.
  • Minimum value addition is 15% in case of Advance authorization.
  • DFIA:
  • DFIA or imported materials against it are freely transferrable after completion of export obligation.
  • DFIA are available only for annual requirement under SION.
  • Minimum value addition is 20% in case of Duty Free Import Authorization.
Entitlement:
  • Duty free import of mandatory spares up to 10% of CIF value of Authorization which are required to be exported/ supplied with resultant product are allowed under Advance Authorization.
  • Advance Authorization can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for:
  • Physical exports (including exports to SEZ); and/ or 
  • Supply of ‘stores’ on board of foreign going vessel/ aircraft subject to condition that there is specific SION in respect of item(s) supplied.
  • An Advance Authorization can also be availed by sub-contractor to such project provided name of subcontractor(s) appears in main contract.
Qualitative Incentives:
Authorization shall be issued with actual user condition and shall be exempted from payment of:
  • Basic customs duty.
  • Additional customs duty/ Excise duty.
  • Education cess.
  • Anti-dumping duty.
  • Safeguard duty.
Condition:
  • A minimum 20% value addition shall be required for issuance of such authorization, except for items in gems and jewellery sector.
  • Fulfillment Period of EO under an Advance Authorization shall Period and its Extension commence from Authorization issue date. EO shall be fulfilled within 24 months
  • except in case of supplies to projects / turnkey projects in India / abroad under deemed exports category where EO must be fulfilled during contracted duration.
  • In case of Spices {(covered by chapter 9 of ITC (HS)}, EO shall be fulfilled within 90 days from the date on which first import consignment is cleared by Customs Authorities.
  • However, in case of import of spices for VA purpose like crushing / grounding / sterlisation or for manufacture of oils and oleoresins and not for simple cleaning, grading, re-packing etc., EO shall be fulfilled within 120 days.
  • EO Period for import of drugs (with a specific export order and pre-import condition) and for import of tea shall be 6 months.
Document:
  • An application for grant of an Advance Authorization / Advance Authorization for Annual Requirement / DEPB / DFIA may be made by Registered office or Head office or a branch office or manufacturing unit of eligible exporter, to RA concerned. 4.3
  • Where applicant is branch office or manufacturing unit(s) of an exporter, it shall furnish self certified copy of valid RCMC where name of branch office or manufacturing unit is given.
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