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Duty Free Advance Authorisation Scheme

The Foreign Trade Policy 2015-2020 (w.e.f 01.04.2015) has been issued. The existing Duty Exemption / Duty Remission Schemes like EPCG scheme will continue. The Duty exemption schemes are broadly divided into following categories:

  • Advance Authorisation Scheme

    All the three categories namely Physical Exports, Deemed Exports & Intermediate Supplies are classified under common platform known as "ADVANCE AUTHORISATION SCHEME" under the popular Duty Exemption Scheme (DES).

    Under DES Scheme, the advance authorizations are issued for duty free imports required for export production.

    • Advance Authorisation are issued to manufacturers exporters or merchant exporters tied to manufacturer(s) for duty-free imports of inputs.
    • Supply of Goods to ultimate exporter holding another Advance Authorisation / Duty Free Import Authorisation.
    • Supply of Goods to the various categories as mentioned in Chapter 7.02 of the Policy (8 notified categories).
    • Supply of stores on board of the foreign going vessels / aircrafts.
    • Supply to SEZ such as EOU / Project Authority / Deemed Export
    • Supply against E.P.C.G Licence

    Important Conditions:

    • Advance Authorisation shall have minimum 15% Value Addition.
    • Advance Authorisation it's Imports shall be with actual User Condition i.e. it shall never be transferable / sold even after EODC is obtained.
  • Duty Free Import Authorisation Scheme (DGIA)

    This scheme is similar to Advance Authorisation Scheme, but is issued only completion of exports after there are some other major changes.

    The Duty Free Import Authorisation (DFIA) eligibility:

    • Duty Free Import Authorisations are issued to manufacturer exporters or merchant exporters tied to manufacturer(s) for duty-free import of inputs.
    • Supply of Goods to the various categories as mentioned in Chapter 7.02 of the Policy (8 notified categories).

    Important Conditions:

    • Value Addition shall be minimum 20%.
    • Transferability endorsement only after fulfillment of export obligation.
    • SION of the export product must be fixed. d) Separate application to be filed for each SION and each PORT.
    • Cannot be issued for export product where SION prescribes "Actual User" Condition.
    • Cannot be granted for import of Raw Sugar.
    • No revalidation will be granted.