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In India there are lots of benefits given by the Indian government for doing ease of business, Duty Free Import Authorization is one of them. It allows duty-free import of inputs such as fuel, oil, energy source, catalyst, and others which are required for the production of the export product.

 Things to know about DFIA

  • DFIA shall be exempted only from payment of Basic Customs Duty and not total duties.
  • DFIA is transferrable that is, if you don’t need those Duty Free Inputs after the export, you may transfer your license to a needy friend for money.
  • It must be a minimum 20% value addition in the final value of the export item from the value of input used.
  • After getting the authorization the export must be made and the proof of export must be furnished within 12 months.

 Who can apply for Duty-free Import Authorization?

All manufacturing industries are eligible for claiming DFIA if they require import material for producing the export item either if they are Sole Proprietorship, Partnership or Company, etc.

In the case of merchant exporter, it is mandatory to mention the name and address of supporting manufacturers of the export goods on the export documents like ARE-1, ARE-3, Shipping Bill, Airway Bill, Bill of Export, etc.

 How to apply?

  1. An online application is to be filed by the applicant to the regional authority before starting export under Duty-Free Import Authorization. A file number would be allotted to the filing of the form.
  2. It is mandatory to complete the export within 12 months from the date of the online filing of an application for Duty-Free Import Authorization.
  3. At the time of the export of products, the applicant must mention the file number on the export documents like ARE-1, ARE-3, Shipping Bill, Airway Bill, Bill of Export, etc.
  4. On completion of the export and realization of proceeds, the applicant can ask for the issuance of transferable Duty-Free Import Authorization to the concerned Regional Authority. Such a request should be done within 12 months from the date of export or within 6 months from the date of realization of export proceeds, whichever is later.
  5. Separate Duty-Free Import Authorization (DFIA) shall be issued for each SION and each port.
  6. It should be noted that export under Duty-Free Import Authorization would be made from a single port.
  7. Duty-Free Import Authorization shall not be issued for the export of products where SION prescribes Actual User condition for any input.

 How ASC Help?

  1. Acquiring Digital Signature Certificate which is specifically used in the DGFT website.
  2. Filing of online application with the concerned Regional Authority for obtaining the authorization.
  3. Preparation of documents that are required for submission with DGFT.
  4. Continuous follow-up with the concerned authorities for obtaining the authorization.
  5. Advising the company for the process and procedure to take the authorization ongoing concern basis.
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