Duty Free Import Authorization (DFIA)

Overview

Duty Free Import Authorization (DFIA) is an export incentive scheme issued by the Directorate General of Foreign Trade under India’s Foreign Trade Policy. This scheme allows exporters to import inputs used in the manufacturing of export products without paying customs duties.
Unlike Advance Authorization, DFIA is a post-export benefit, meaning exporters must first complete the export of goods and then apply for duty exemption on inputs used. The scheme operates based on Standard Input Output Norms (SION), which define the quantity of inputs required to produce a specific export product.
Once the export obligation is fulfilled, the DFIA license becomes transferable, allowing businesses to sell it in the market if they do not wish to use it themselves. This flexibility makes DFIA a highly beneficial scheme for exporters looking to optimize costs and improve cash flow.
 

1. Duty-Free Import of Inputs
DFIA allows exemption from Basic Customs Duty, Safeguard Duty, and Anti-Dumping Duty on inputs required for manufacturing of export goods. This significantly reduces the cost of raw materials and enhances overall profitability.

2. Post-Export Advantage
Since DFIA is issued after exports are completed, businesses do not need to worry about compliance during production. This reduces operational pressure and provides flexibility in procurement planning.

3. Transferability of License
After fulfilling export obligations, DFIA licenses can be transferred or sold to other importers. This creates an additional revenue opportunity for exporters who may not need to import inputs themselves.

4. No Actual User Condition (Post Export)
Once the export requirement is met, there is no restriction on who can use the license. This increases liquidity and Ease of doing business.

5. Cost Optimization & Higher Margins
By eliminating import duties, companies can reduce production costs, leading to better pricing strategies and higher profit margins in competitive global markets.
 

Step 1: Export of Goods
The exporter manufactures and exports goods as per SION norms. All exports must be properly documented with shipping bills and invoices.

Step 2: Application Filing on DGFT Portal
After completing exports, the applicant files an online application for DFIA through the DGFT portal with complete product and input details.

Step 3: Documentation Submission
Relevant export documents such as shipping bills, invoices, and BRC are uploaded for verification.

Step 4: Verification by DGFT
DGFT reviews the application, checks compliance with SION norms, and validates export details.

Step 5: Issuance of DFIA License
Upon successful verification, the DFIA authorization is issued to the applicant.

Step 6: Duty-Free Import of Inputs
The license holder can import inputs without paying applicable customs duties.

Step 7: Transfer or Utilization
After export obligation fulfillment, the DFIA can either be used by the importer or transferred/sold to another party.
 

• Import Export Code (IEC) 
• Shipping Bills 
• Export Invoices 
• Packing List 
• Bill of Lading / Airway Bill 
• Bank Realization Certificate (BRC) / e-BRC 
• SION (Standard Input Output Norms) Details 
• GST Registration Certificate 
• PAN Card of Applicant 
• Digital Signature Certificate (DSC) 
• DGFT Application Form (ANF) 
• Authorization Letter 

• End-to-end assistance for DFIA application filing 
• Verification and preparation of all required documents 
• Accurate mapping of inputs as per SION norms 
• Filing and follow-up with DGFT authorities 
• Issuance of DFIA License 
• Advisory on duty-free imports and compliance 
• Support for transfer/sale of DFIA license 
• Post-approval consultation and compliance guidance