DFIA

The government has provided a number of schemes for refund or neutralisation of import duties incurred or deemed incurred on the inputs used in export products. Duty Free Import Authorisation (DFIA) is one of such schemes.

DFIA is issued under the duty exemption scheme of India's Foreign Trade Policy (FTP) for import of permissible raw materials, components and consumables without payment of basic customs duty. The items permitted for import are according to the formulae provided in the “Standard Input Output Norms”. It is a post exports transferable entitlement.

We trade in DFIA licences issued against a number of export products.

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The main export products for which we buy DFIAs are:

Engineering Sector:

Bicycles
Tyres and Tubes
Automobile Parts
Steel Products

Food Sector:

Biscuits
Confectionary
Pickles
Jam & Jelly
Namkeens
Oleoresins

Chemicals Sector:

Dyes and Pigments

The main Import Products for which we sell DFIAs are:

Rubber and Rubber Chemicals
Essential Oils
Primary Flat and Long Steel Products
Alloy Steel
Non Ferrous Metals
Spices and Commodities
Food Additives

 

 

Selecting between Drawback or DFIA?

The duty drawback scheme (All Industry Rate) for remission of duties is a relatively simple scheme and offers reimbursement for customs, excise duties or other taxes incurred on exported goods.

In many cases it is found that the DFIA can offer better compensation instead of the customs duty portion of Drawback.

We can help exporters find the price they can get for the DFIA licences so that they can select the better option among the above two and can also enter into forward contract for purchase of such expected DFIAs.

 

Important Note: (1)The above content is based on the provisions of the FTP of period 2015-20 which provides for only post export DFIA.

(2) The primary purpose of the content of this page is to make our services known. Only cursory details have been provided on various provisions referred above. Before drawing any inference or conclusion the exporters, importers or other visitors to this site are advised to refer to all relevant acts, rules or regulations.