The Duty-Free Import Authorization (DFIA) Scheme allows Indian exporters to import raw materials, components, and intermediates without paying customs duty for the production of goods meant for export. The scheme is designed to **reduce the cost of production** and enhance global competitiveness of Indian products.
Why DFIA is Important?
- Reduces cost of imported raw materials for export production.
- Encourages domestic manufacturing for exports.
- Helps exporters meet global quality and price standards.
- Facilitates compliance with DGFT regulations.
Benefits of DFIA
- Duty-free import of inputs required for export products.
- Supports large-scale and small-scale exporters alike.
- Reduces dependence on domestic raw materials if costly or unavailable.
- Improves cash flow by deferring or avoiding customs duties.
Eligibility Criteria
- All exporters holding a valid Import Export Code (IEC).
- Manufacturers producing goods for export.
- Businesses registered with DGFT and complying with export obligations.
Required Documents
- IEC (Import Export Code).
- Application form (ANF 3A for DFIA).
- Bank certificate or current account details.
- Export obligation plan or prior export records.
- Proof of manufacturing setup (for new applicants).
Key Tips
- Maintain accurate records of imported raw materials and their usage.
- Ensure export obligation is fulfilled within the prescribed period (usually 6 years).
- Submit timely returns and compliance reports to DGFT to avoid penalties.
- Plan imports strategically to optimize duty-free benefits.
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