Duty Exemption Scheme

The Duty Exemption Scheme enables duty free import of inputs required for export production. Under the scheme government can issue an Advance Authorization or DFIA to import inputs the duty free. In addition DEPB is issued post-export as a script mentioning the duty amount that can be utilized for further imports.

Input - Output norms (SION)

The government has published the standard input-output norms (SION) for more than 6000 products. These are available in the Handbook of Procedures (Vol-II) of Exim Policy. While applying for advance Authorization the input-output norms are to be followed for duty free inputs. If however no norms are available, Authorization can still be applied on self- declaration basis.

• An Advance Authorization is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage) subject to actual user condition. Such Authorizations are exempted from payment of basic customs duty, additional customs duty, anti dumping duty and safeguard duty, if any.
• Advance Authorization can also be issued for supplies with in India that are categorized as Deemed Exports. Purposes like supplies to Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc.
• Advance Authorizations are issued with an obligation to export the quantity and value of goods mentioned therein in a fixed period of 24 months. Before imports customs ask for a bond or a bank guarantee towards security for duty saved, till export obligation is fulfilled.
• Advance Authorizations or materials imported against it can-not be transferred even after completion of Export Obligation.
• Advance Authorisations are also available for Annual requirement under SION as well as on SELF-DECLARATION basis.

Duty Free Import Authorisation (DFIA)

• DFIA is issued to a merchant-exporter or manufacturer-exporter for duty free import of inputs used in the manufacture of goods without payment of basic customs duty, additional customs duty/excise duty, antidumping duty and safeguard duty if any. DFIA is issued on minimum value addition of 20%, and only for export of products covered under the SION. DFIA and or the material(s) imported against it are freely transferable after completion of Export Obligation.
• DFIA can also be issued for supplies with in India that are categorized as Deemed Exports. Purposes like supplies to Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc.
• DFIA can also be issued for supplies with in India that are categorized as Deemed Exports. Purposes like supplies to Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc.