Advance Authorisation VS. DFIA Scheme.
The Duty Exemption Schemes allows for the duty-free import of inputs necessary for export production. These schemes encompass Advance Authorisation Scheme and the Duty-Free Import Authorisation (DFIA Scheme), enabling exporters to import duty-free inputs for goods to be exported. An Invalidation letter can also be obtained for the purchase of domestic inputs under this scheme. We offer services for Duty Remission and the Duty Exemption Scheme and assists in accessing exemption benefits. These schemes provide an opportunity for exporters to obtain exemption at the input stage, reducing the amount of funds blocked by duties.
Below is the primary difference between Advance Authorisation Scheme and DFIA Scheme:
|
Particulars |
Advance Authorisation |
DFIA Scheme |
|
Time of issue |
Advance Authorisation is generally issued before the raw materials are imported so as to allow duty free import of inputs |
DFIA is issued after the export proceeds are done. The DFIA License thereby issued after the requisite exports can be used for importing duty free inputs. |
|
Export Obligation Period |
The initial export obligation period is 18 months and can be extended |
No Export Obligation as exports proceeds happen beforehand. |
|
Minimum Value Addition |
15% |
20% |
|
Transferability |
No transferable as Advance Authorisation is issued subject to actual user condition |
Freely transferable |
|
License Validity |
Advance License has 12 months import validity and 18-month export obligation period. |
12 months from the date of issue |
|
Norms |
Advance Authorisation can be issued based on the SION Norms and on Self Declaration Basis (Ad-hoc Norms) |
DFIA can be issued only based on SION Norms |
|
Coverage |
Under Advance Authorisation, the inputs to be imported are exempted from Basics Customs Duty (BCD) and IGST |
Under DFIA, the inputs to be imported are only exempted from Basic Customs Duty (BCD) |
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DGFT clarifies issues raised concerning Pre-Import Conditions under Advance Authorisation Implementation of the Trade Notice 07/2023-24 dated 08th June, 2023,…
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