DFIA Schemes for Export

[VISHAL PATEL]

Dear Sir,

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

[YAGAY and SUN]

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 and SUN]

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

Domestic sourcing of inputs permitted under DFIA schemes allowing holders to procure indigenous inputs in lieu of imports. Domestic sourcing of inputs is permitted under the DFIA/Advance Authorisation framework: holders of an Advance Authorisation or Duty Free Import Authorisation may procure inputs from indigenous suppliers, State Trading Enterprises, or designated domestic units in lieu of direct import, by using an Advance Release Order or an Invalidation Letter, pursuant to Para 4.20 and the applicability provisions in Para 4.25(b) of the FTP.