What is Duty Exemption Remission Schemes and Different Methods To

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:

Where,

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.

** We are in contact with the Directorate General of Foreign Trade (DGFT) and other departments for the issuance of transferable DFIA. You can count us on redemption of DFIA license at DGFT.**

To Know More

Which Services We Provide Related to Clearance

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
ATA carnet clearance
Second-hand capital goods
Free-of-charges shipments
Courier clearance
Door to door delivery

Certificates From The Concerned Departments

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

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What Documents Required For Exports

Legal, Standard and Specific Documents Required

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)

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