Duty Free Import Authorisation (DFIA) Scheme for Securing Import Authorisations

Deepak Purohit

Deepak Purohit

Published on: May 8, 2026

Megha Makharia

Updated on: May 8, 2026

★★★★★(2 Ratings)

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Introduction

Duty Free Import Authorisation (DFIA) scheme is a strategic gateway, for tax-free entry of essential raw materials, fuels, and catalysts, vital for manufacturing export-grade goods. Governed by the FTP 2023 and HBP 2023, this scheme operates on a post-export basis and requires strict compliance with input accounting, domestic sourcing, and currency realization. Unlike the pre-export, 15% value-addition AA scheme (exempting BCD/IGST), the post-export, transferable DFIA scheme requires 20% value addition and exempts only BCD, linking benefits directly to export value.

APPLICABLE PROVISIONS

• Para 4.12, 4.18, 4.20, 4.21, and 4.23, 4.24 of Foreign Trade Policy, 2023
• Para 4.26, 4.27, 4.28, 4.49(f), Para 4.53, 4.54, 4.55, 4.56, 7.02 of the Handbook of Procedures, 2023
• Para vii of CBIC Notification regarding Implementation of DFIA Scheme under FTP, 2023

MANDATORY REQUIREMENTS

• Valid Importer-Exporter Code (IEC)
• Mandatory disclosure of Supporting Manufacturer details
• Achieve minimum 20% value addition.

Procedure to be Followed (Step-By-Step)

1. Obtain Importer-Exporter Code:
   Importer or Exporter shall obtain valid Importer-Exporter Code (IEC) in case they do not already possess the same.
   (Please refer Article on Import-Exporter Code – [https://www.lawrbit.com/article/importer-exporter-code/] – for detailed Information)
2. Pre-Export Verification:
   Applicant shall ensure that the export product is covered, under the notified Standard Input Output Norms (SION).
3. Application for Issuance of DFIA File Number:
   • Applicant shall apply online via the DGFT portal, in Form ANF 4G, for obtaining a DFIA File Number, wherein basic details along with information about export and inputs are also to be provided.
   • On submitting application for DFIA file number, a file number is issued to the applicant, and it can start with the exports with reference to same file number and no approval is required from DGFT.
4. Fulfil Export Obligations:
   • Exporter must complete the export obligation within 12 months from the date of online filing and generation of file number
   • Shipping Bills/ Tax Invoices should be endorsed with File Number or Authorisation Number, to establish co-relation of exports/ Deemed Export supplies, with Authorisation issued.
   • Goods defined under SION, must be exported and a minimum value addition of 20% is required.
   • Export proceeds must be realized within the prescribed time limit as per RBI guidelines.
5. Application for Issuance of DFIA File Number:
   • Applicant shall apply online via the DGFT portal, in Form ANF 4G, for obtaining transferrable DFIA, along with a fee of one per thousand or part thereof subject to a minimum of Rs. 500 and maximum of Rs. 1 lakh, on CIF value/duty saved amount of Authorization/ license/ permission and the below-stated documents:

     List of Documents to be attached with the application
     General Documents (All Applicants)	Application Fee Proof: Bank Receipt, EFT, or Credit Card details as per Appendix 2K Project Authority Certificate (PAC): Required for supplies to EOU/EHTP/STP/BTP or other specific projects Form-I: Signed by competent authorities (specifically for supplies to EOU/EHTP/STP/BTP)
     Documents for Physical Exports	Realization Proof: eBRC, Bank Certificate (Appendix 2U), FIRC, or Appendix 2L (for off-setting proceeds) Shipping Bills: EP copy of shipping bills or Bill of Export (for SEZ) Export Statement: Shipping bill-wise details including number, date, FOB value, and product description Appendix 4H: Accounting register for consumption and stocks allowed under DFIA Import Statement: Item-wise details of Bill of Entry, quantity, and CIF value
     Documents for Deemed Exports / Intermediate Supplies	Invalidation Letter: Required for supplies made to EPCG, Advance Authorisation, or DFIA holders Supply Invoices: Copy of invoices or a statement of invoices certified by the receiver’s jurisdictional GST/Excise authorities Payment Certificate: In the format of Appendix 7D Supply Statement: Invoice-wise details including number, date, FOR value, and product description Appendix 4H: Accounting register for consumption and stocks allowed under DFIA Import Statement: Item-wise details of Bill of Entry, quantity, and CIF value

   • Such application for transferrable DFIA is to be made to the concerned RA, within 12 months, from the date of export or 6 months (or additional time allowed by RBI for realization), from the date of realization of export proceeds, whichever is later.

   Note:

   • Goods imported against transferable DFIA, which are found defective or unfit for use, may be re-exported.
   • A fresh DFIA shall be issued by the RA, based on a Customs certificate (95% of CIF value debited) if the goods were not put to use after import.
   • Original DFIA holder must maintain a true and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation as prescribed in Appendix 4H, which are required to be filed online, to RA concerned, along with request for transferability.
   • Split Authorisations of DFIA subject to a minimum of CIF value of Rs. 10 lakh each and multiples thereof may also be issued, on request at the time of seeking transferability, which will be permitted with the same port of registration as appearing on the original DFIA.
6. Scrutiny and Issuance of Transferrable DFIA:
   • The RA examines the correlation between the exported items and the inputs requested based on SION
   • If the application and documents are in order, the RA typically issues the transferable DFIA license
   • Such Transferable DFIA is valid for the period of 12 months from the date of issue of authorisation.
7. Post Authorization Obligation:
   Importer must produce the evidence of fulfillment of the export obligation, to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be.