DFIA Schemes for Export

[VISHAL PATEL]

Dear Sir,

Please clarify under DFIA Schemes, Can use Domestic raw material for producing export goods?

[YAGAY andSUN]

Whether DFIA Scheme is operational?

[VISHAL PATEL]

yes Sir DFIA schemes is operational.

[KASTURI SETHI]

Q. Can use Domestic raw material for producing export goods ?

Ans. Yes. Allowed. Pl. go through the following:-

Para No.4.25 of FTP (DFIA)

Para No.4.25(b) of FTP :-Provisions of paragraphs 4.12, 4.18, 4.20,4.21 and 4.24 of FTP shall be applicable to DFIA also.

Para no.4.20 is as under :-

4.20 Domestic Sourcing of Inputs

(i) Holder of an Advance Authorisation / Duty Free Import Authorisation can procure inputs from indigenous supplier/ State Trading Enterprise/EOU/EHTP/BTP/STP in lieu of direct import. Such procurement can be against Advance Release Order (ARO), or Invalidation Letter.

[YAGAY andSUN]

https://blog.nextias.com/duty-free-import-authorisation-dfia-scheme

[Raghunandhaanan rvi]

Dear Vishal Patel Ji

Please refer Para 4.20 of FTP. This Para dealt with this matter in detail.

[KASTURI SETHI]

Para No.4.20 of FTP is already mentioned in my reply.

[Raghunandhaanan rvi]

Dear Kasturi Ji

Yes Sir. Sorry, forgot to mention this in my reply.

AI Summary

DFIA Scheme Allows Domestic Raw Materials for Export Goods Production Under FTP Paragraph 4.20 A forum discussion revolves around the Duty-Free Import Authorization (DFIA) scheme, specifically whether domestic raw materials can be used to produce export goods. It is confirmed that the DFIA scheme is operational and permits the use of domestic raw materials. Participants refer to Paragraph 4.20 of the Foreign Trade Policy (FTP), which allows holders of Advance Authorisation or DFIA to procure inputs from indigenous suppliers as an alternative to direct imports. This can be done through an Advance Release Order or an Invalidation Letter. The discussion includes multiple confirmations and references to the relevant FTP provisions.