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.

Entitlement
Provisions shall be applicable in case of DFIA. However, these Authorisations shall be issued only for products for which Standard Input and Output Norms (SION) have been notified. In case of post export DFIA, a merchant exporter shall be required to mention only name (s) and address(s) of manufacturer(s) of the export product(s). Applicant is required to file application to concerned RA before effecting exports under DFIA.

Pre-export Authorisation shall be issued with actual user condition and shall be exempted from payment of basic customs duty, additional customs duty / Excise duly, education cess. anti-dumping duty and safeguard duty, if any.

Transferability:
Once export obligation has been fulfilled. request for transferability of Authorisation or inputs imported against it may be made before concerned RA. Once transferability is endorsed, Authorisation holder may transfer DFIA or duty free inputs, except fuel and any other item(s) notified by DGFT However, for fuel, import entitlement may he transferred only to companies which have been granted authorisation to market fuel by Ministry of Petroleum and Natural Gas.

CENVAT Facility
CENVAT credit facility shall be available for inputs either imported of procured indigenously. ance Authorisation / DFIA. However those items can be procured from STEs against ARO or Invalidation letter.