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-
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.
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.
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.
To Know More
There are certain certificates that you must obtain from the concerned departments regarding the following items: