Frequently Asked Questions

Yes, penalties can often be reduced or avoided if you provide valid explanations, proper documentation, and strong legal arguments. Authorities consider factors like intent, nature of violation, and supporting evidence before deciding penalties.

Responding to an SCN is crucial because it gives you an opportunity to present your side of the case. A well-prepared reply can clarify misunderstandings, provide evidence of compliance, and prevent or reduce penalties. Ignoring the notice can result in an adverse order without your input.

It is a legal process initiated by DGFT when a violation of the Foreign Trade Policy or license conditions is suspected. The process starts with a Show Cause Notice and ends with an adjudication order, after reviewing your reply and conducting a hearing. The authority may impose penalties, issue warnings or close the case based on the merits.
 
 

Yes, a single e-BRC can cover multiple shipping bills if one payment is received for several exports. The exporter can map the same e-BRC accordingly on the DGFT portal and use it for various purposes such as incentive claims, license redemption, or compliance filings, depending on eligibility.

If the e-BRC is not visible or contains incorrect details such as wrong amount or shipping bill number, the exporter must immediately contact their bank. Only the bank has the authority to correct, cancel, or re-upload the e-BRC. Timely correction is important to avoid delays in claiming benefits or completing compliance requirements.

Once the exporter receives payment, the Authorized Dealer bank verifies the transaction and uploads the e-BRC, electronically to the DGFT system. The certificate is then automatically reflected in the exporter’s DGFT account linked with their IEC, usually within a few working days, depending on the bank’s processing timeline.

The e-BRC is an electronic certificate issued by banks, confirming that export payment has been received in foreign currency. It is important because it serves as official proof of realization, which is mandatory for claiming export incentives and fulfilling obligations under DGFT schemes. Without e-BRC, exporters may face rejection of benefits and compliance issues.

DFIA generally has a validity period (commonly 12 months for imports), which may vary as per DGFT notifications. Imports must be completed within this time frame.

Yes, DFIA becomes transferable after fulfillment of export obligation. Once transferable, it can be sold or used by any importer, making it a tradable instrument in the market.

SION (Standard Input Output Norms) defines the quantity and type of inputs required to manufacture a specific export product. DFIA benefits are granted strictly based on these predefined norms.

Any manufacturer, exporter or merchant exporter with a valid Import Export Code (IEC) can apply, provided the export product is covered under SION norms and all export documentation is properly maintained.

DFIA is a post-export authorization issued by the Directorate General of Foreign Trade that allows exporters to import inputs without paying customs duty. The exporter first completes the export of finished goods as per SION norms and then applies for DFIA to claim duty benefits on inputs used.

No, diamonds imported under Imprest Authorization cannot be sold in the domestic market. They must strictly be used for manufacturing, processing, or value addition and then exported. Any diversion to the domestic market is treated as a violation of DGFT rules.

The export obligation period is usually defined in the authorization issued by DGFT and may vary depending on policy provisions. In most cases, exporters are required to complete exports within a specific time frame (e.g., months), and extensions may be granted only under valid circumstances with proper justification.

Yes, export obligation is a core condition of Imprest Authorization. The importer must utilize the imported diamonds for value addition and export the finished goods within the prescribed time. Failure to meet this obligation can lead to recovery of duties along with penalties.

Any exporter engaged in the gems & jewellery business with a valid Import Export Code (IEC) can apply. Typically, businesses with a proven export track record, proper infrastructure for processing, and compliance history are preferred. Both manufacturers and merchant exporters will be eligible, depending on DGFT conditions.

Diamond Imprest Authorization is a facility granted by the Directorate General of Foreign Trade (DGFT) that allows exporters to import rough or cut & polished diamonds without payment of customs duty, provided the imported goods are used for manufacturing or processing and then exported. It is specifically designed to support export-oriented units in the gems & jewellery sector.
 
 

The processing time generally ranges from 30 to 90 days, depending on the documentation accuracy and authority processing. Delays may occur if there are discrepancies or additional queries raised.

Supplies to Export Oriented Units (EOUs), Special Economic Zones (SEZs), Advance Authorization holders, EPCG authorization holders, and projects funded by international agencies are commonly covered. The exact eligibility depends on FTP notifications.

Yes, GST is applicable at the time of supply as per normal provisions. However, the paid tax can be claimed as a refund, subject to fulfillment of prescribed conditions and documentation.

The benefit can be claimed either by the supplier or the recipient, depending on mutual agreement and the conditions prescribed. Typically, manufacturers, contractors, or suppliers dealing with EOUs, SEZs, or notified projects are eligible.

Deemed export refers to the supply of goods within India that is treated as export under the Foreign Trade Policy. Even though the goods do not leave the country, such transactions are eligible for export-related benefits as notified by the Directorate General of Foreign Trade.
 
 

The validity of the FSC depends on the issuing authority’s terms and the requirements of the importing Country. In some cases, it may be issued for a specific shipment, while in others it may be valid for a defined duration.

Yes, traders and exporters can apply for FSC. However, they must provide proper authorization from the manufacturer along with supporting documents to validate the product’s origin and compliance status.

Typically, the FSC is issued within 5–10 working days, provided that all documents are complete and accurate. Delays occur if additional clarifications or corrections are required during the verification stage.

No, FSC is not universally mandatory for all exports. Its requirement depends on the importing country’s regulations and the nature of the product. However, for regulated goods such as food, cosmetics, and medical devices, it is frequently a compulsory document.

The FSC serves as official proof that the goods being exported are freely sold in India without any legal restrictions. It assures foreign governments that the products meet Indian regulatory standards and are safe for distribution, which is often required for product registration or import approvals in many Countries.

Yes, DGFT allows amendments to issued certificates. Businesses can update details such as company name, address, product specifications, or correct any errors by submitting a proper application along with supporting documents for approval.

The processing time depends on the type of registration and the accuracy of the submitted documents. Simple registrations will be completed within a few days, while more complex authorizations can take one to two weeks. Timely submission of correct documents helps avoid delays. 

Yes, the Import Export Code (IEC) is a fundamental requirement for most DGFT services. It acts as a primary identification number for businesses engaged in international trade, and without it, applying for most DGFT certificates is generally not feasible.