Import Facilitation Schemes
DFIA (Duty Free Import Authorisation) Scheme
Advisory Services
The Duty Free Import Authorisation (DFIA) scheme is an important import facilitation mechanism under India’s Foreign Trade Policy that allows exporters to import inputs without payment of customs duties after fulfilling the export obligation.
The scheme is particularly beneficial for exporters who manufacture products using imported raw materials and wish to recover duties paid on such inputs through a duty-free import authorisation.
However, businesses often face challenges in understanding scheme eligibility, product-specific input-output norms, documentation requirements, and DFIA transferability provisions. Proper advisory support helps exporters ensure compliance while effectively utilising the scheme.
Shangrila Corporate Services Pvt Ltd provides structured advisory to help exporters obtain DFIA authorisations, manage documentation, and maximise benefits available under the scheme.
Overview
What is the DFIA Scheme?
The Duty Free Import Authorisation (DFIA) scheme allows duty-free import of inputs used in the manufacture of export products after the exporter has completed the required export obligation.
Unlike Advance Authorisation, the DFIA scheme typically allows transferability of the authorisation after the export obligation has been fulfilled, making it a flexible option for exporters.
The scheme operates under the provisions of India's Foreign Trade Policy and is administered by the Directorate General of Foreign Trade.
Suitable For
Who Should Consider DFIA Advisory?
DFIA advisory is relevant for exporters who use imported inputs in their manufacturing process and wish to recover duty benefits through the scheme.
Typically Suitable For:
Businesses exporting products covered under Standard Input Output Norms (SION)
Companies seeking duty-free import benefits after export fulfilment
Exporters looking for transferable authorisation benefits
Key Benefits
Key Benefits of DFIA Scheme
The DFIA scheme provides several advantages for exporters:
01
Duty-free import of raw materials and production inputs
02
Recovery of duties paid on imported inputs used in exports
03
Transferability of DFIA after export obligation fulfilment
04
Reduction in production costs for export goods
05
Improved global competitiveness for exporters
These benefits help exporters optimise import costs while supporting export growth.
Process
How DFIA Scheme Works
The DFIA scheme allows exporters to claim duty-free import authorisation based on completed export transactions.
The process generally involves:
01
Export of eligible products under the scheme
02
Filing an application for DFIA authorisation
03
Verification of export performance and documentation
04
Issuance of DFIA authorisation by DGFT
05
Duty-free import of eligible inputs or transfer of authorisation (subject to policy provisions)
This mechanism allows exporters to recover duties through duty-free imports linked to export performance.
Common Pitfalls
Common Challenges Exporters Face
Exporters applying for DFIA often face challenges such as:
Difficulty identifying eligible products under SION norms
Errors in documentation during DFIA application filing
Compliance issues during verification by authorities
Lack of clarity regarding transferability provisions
Delays in obtaining DFIA authorisations
Professional advisory helps exporters navigate procedural requirements and avoid compliance risks.
How We Help
Our Approach to DFIA Advisory
Shangrila Corporate Services Pvt Ltd provides structured support to help exporters utilise DFIA benefits efficiently while maintaining compliance with policy provisions.
Our Services Include:
Eligibility Assessment
Evaluation of export products for DFIA applicability.
Application Preparation
Preparation and filing of DFIA authorisation applications.
SION Advisory
Guidance on applicable Standard Input Output Norms.
Export Documentation Review
Verification of export documentation supporting DFIA claims.
Transferability Advisory
Guidance on utilisation or transfer of DFIA authorisations.
Documentation
Documents Required to Get Started
Import Export Code (IEC)
Export invoices and shipping bills
Product HS classification details
Bill of materials or input-output data
Export performance records
Optimise Import Costs with DFIA Benefits
The DFIA scheme offers exporters a structured mechanism to recover duties paid on imported inputs through duty-free authorisations. Connect with our team to:
- Evaluate eligibility for DFIA authorisation
- Prepare and file DFIA applications
- Ensure compliance with Foreign Trade Policy provisions
FAQ
Frequently Asked Questions
It is a scheme that allows duty-free import of inputs used in exported products after fulfilment of export obligation.
Exporter manufacturers whose products fall under applicable input-output norms.
Transferability is generally permitted after export obligation is fulfilled, subject to policy provisions.
Standard Input Output Norms define the quantity of inputs required to produce export goods.
Professional guidance helps ensure accurate applications and smooth approval of authorisations.
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Why SCS
Why Work with
Shangrila Corporate Services Pvt Ltd
Expertise in DGFT licensing and Foreign Trade Policy schemes
Experience assisting exporters with import facilitation mechanisms
Structured approach to documentation and regulatory compliance
Practical advisory support for exporters managing complex licensing processes
We help exporters reduce import costs and maximise benefits available under trade promotion schemes.
Get in Touch
If your business imports raw materials for export production, expert advisory can help you utilise DFIA benefits effectively and maintain compliance with DGFT regulations.