Duty Exemption and Remission Scheme
Duty Exemption and Remission Schemes are based on the principle and commitment of the government that goods and services are to be exported and not the taxes and levies. Its purpose is to allow duty free import/ procurement of inputs or to allow replenishment either for the inputs used or the duty component on inputs used.
Brief out these schemes are as follows-
1. ADVANCE AUTHORISATION SCHEME (AA)-
- Advance authorisation scheme (AA) will allow all the manufacturers to export the duty- free inputs, be it oil, catalyst, etc., Inputs allowed in accordance with Standard Input Output Norms (SION) or ad hoc under actual user conditions. IEC is required for the application of the Advance Authorisation Scheme.
A minimum of 15 percent is required for value addition, except for certain items. Exporters have to fulfil export obligation over a specific period of time, both quantity and value wise.
Eligibility Condition for Advance Authorisation
Entitlement for Advance authorization shall be provided to the exporters having performance of at least two years.
A claim will be based on CIF import value, which must be 300 percent of FOB export value and/or for deemed exports from the previous year or Rs 1,00,00,000, whichever will be higher.
2. DUTY FREE IMPORT AUTHORISATION SCHEME (DFIA)-
Duty Free Authorization scheme (DFIA) began in 2006, Which will be issued after the goods exported for those products which are under Standard Input Output Norms(SION). Provisions of DFIA scheme are more or less similar to Advance Authorisation Scheme. DFIA will allow all the manufacturers to export the duty- free inputs, be it oil, catalyst, etc., Inputs allowed in accordance with Standard Input Output Norms (SION).
Minimum Value Addition
Minimum value addition required to fall under DFIA scheme should be 20 percent.
Value Addition (except for Gems and Jewellery sector) shall be:
A = FOB value of export realized or the FOR value of supply received.
B = CIF value of inputs covered by the authorisation, plus the value of any other input used on which benefit of DBK is claimed or intended to be claimed.
DFIA Validity and Transferability under EXIM Policy 2015-20 (FTP 2015-20)
- An application has to be filed by the applicants to the concerned Regional authority before commencement of export prescribed under DFIA scheme.
- Exports must be undertaken within 12 months of the date the application was filed and a file number was generated.
- A file number shall be indicated by the applicant on the documents required for export i.e, Shipping Bill / Airway Bill/ Bill of Export / ARE-1 / ARE-3, Central Excise certified Invoice.
- After completing exports and realizing proceeds, the Regional Authority in a state may request issuance of transferable duty-free import authorization within the period of twelve months from the date of export or within six months (or additional time allowed by RBI for realization) from the date of export proceeds.
- Each SION and each port must receive a separate DFIA.
- The exports under Duty Free Import Authorisation scheme (DFIA) shall be made from a single port.
- The SION will not issue a Duty Free Import Authorisation for an export product in which the input requires ‘Actual User’ status.
- A transferable DFIA must be issued by the regional authority and shall be valid for 12 months. Regional Authorities may not grant further revalidations
Guiding you for DFIA Scheme
We analyse the feasibility of the DFIA scheme for all the exporters. We have a team of DGFT experts who have adequate knowledge and experience in providing such service.
- We make sure that there are no delays in the process by checking the documentation work.
- Afterwards, in the Application process we make the online application and submit the required hardcopy in DGFT.
To Know More
- Import/ Export, cargo mode: Air, sea, and by land.
- Routine shipment, home consumption (duties paid)
- Ex-Bond/In-Bond shipment
- Shipments of DEPB, EPCG, and DFCEC licenses
- 100% EOU / STPI / SEZ / TP for ship spares / R&D certification / passbook scheme
- Import clearance for a project
- Direct deliver perishables and certain cargo
- Re-import after repairs / exhibition
- Clearance of third-country exports
- Clearance of high seas shipments
- ATA carnet clearance
- Second-hand capital goods
- Free-of-charges shipments
- Courier clearance
- Door to door delivery
Legal, Standard and Specific Documents Required
In spite of this, there are some basic legal and standard documents that are needed for most export clearance cases.
which are as follows:
- Commercial Invoice
- Packing list
- KYC Documents Required by The CHA for Custom Clearance.
- GST (LUT)/ IGST declaration
- Export License (If required)
- AD Code on (Bank Letter Head)
- MSME Certificate (If required)
- RCMC/EPC Certificate (If required)
- AA (DEEC)/ DFIA/ EPCG/ EOU License For Export Benefits (incentive) (As an option the Exporter may Choose)
- Any other Documents required to in this Consignment.
Certificates From The Concerned Departments
In relation to the following items you will need to obtain certain certificates from the concern department, which we have provided you below :
- Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments) (if required)
- Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof) (if required)
- Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. ) (if required)
- CDRUG – ADC Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.) (if required)
- SCOMET – Special Chemical organism, material Equipment, Technology.
- PSI – Pre Shipments Inspection. (if required)
- Certificate of origin.
- APEDA – Agriculture and processed food products Export development authority.
- FUMIGATION (if required)
- WILD LIFE (if required)
- Bill of entry (issued by customs only)
- Commercial Invoice
- Airway bill or Bill of Lading
- Certificate of Origin
- Delivery order from shipper/airline and freight forwarder.
- The CHA requires KYC documents for customs clearance.
- License for Import (In case of particular goods)
- Certificate of Insurance (If necessary)
- Letter of Credit or LC
- Technical Write-up or Literature (Only required for specific goods)
- Industrial License (Only required for specific goods)
- Test Report (If any)
- RCMC Registration/Membership Certificate (If required)
- GATT declaration
- License for duty benefits (As an option the importer may choose): AA(DEEC)/ DFIA/ EPCG/ EOU
- And other specific documents for your goods are necessary to import customs clear in importing country.
There are certain certificates that you must obtain from the concerned departments regarding the following items:
- Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments)
- Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. )
- Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof)
- Drug & Cosmetics Act, 1940, No-objection Certificate (NOC) from Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.)
- BIS, Bureau of Indian Standards BIS is responsible for the harmonious development of the activities of standardization, marking and quality certification of goods and for matters connected therewith or incidental thereto
- EPR, Extended Producer’s Responsibility With EPR India authorization, the manufacturer / importer of electronic and electrical products has been given the responsibility to control E-waste by the products after expiry of their lifetime.
- WPC, Wireless Planning & Coordination Imports of radio equipment into India, without prior permission from WPC, will be confiscated by Customs at point of entry.
- LMPC, Legal Metrology & Packaged Commodity Registration For import of any pre-packed commodities commodity to distribute or sell Then he need to apply for packer / manufacturer registration