Frequently Asked Questions

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.
 
 

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.

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.

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.

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.

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.

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.

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.

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.

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.