Duty Free Import Authorization (DFIA)
The Duty Free Import Authorization (DFIA) is an export promotion scheme implemented by the Directorate General of Foreign Trade (DGFT) under India’s Foreign Trade Policy. It allows exporters to import raw materials, fuel, oil, energy sources, and catalysts used in manufacturing export products without paying Basic Customs Duty (BCD) 1: Features of the DFIA · Post-Export Benefit: Unlike Advance Authorization, DFIA is primarily granted after you complete the export obligations and realize the payment. · Exemption Limits: It only exempts Basic Customs Duty (BCD). Integrated GST (IGST) and Compensation Cess are not exempt under this scheme · SION Compliance: Authorizations are strictly issued based on Standard Input-Output Norms (SION) which fix the allowed quantity of duty-free inputs per product · ...