DGFT Rules: New Guidelines for Duty-Free Import Authorizations 2024

The Directorate General of Foreign Trade (DGFT) has reiterated specific procedural compliance for the Duty Free Import Authorization (DFIA) scheme to ensure smoother processing for Indian exporters. DFIA allows the tax-free import of inputs, fuel, and packing materials required for the manufacture of export products. Unlike the Advance Authorization scheme, which is based on actual user conditions, DFIA offers more flexibility after the export obligation is fulfilled. Under the current Foreign Trade Policy, DFIA is issued on a post-export basis for products where Standard Input-Output Norms (SION) are notified. This helps MSME manufacturers manage their working capital by reclaiming duties paid on inputs. Exporters must ensure that the shipping bills are correctly marked for DFIA benefits and that the description, technical characteristics, and specifications of the inputs match the SION requirements to avoid rejection during the redemption process. ## Key points for DFIA applicants - **SION Mandatory:** DFIA is only available for export products that fall under the pre-defined Standard Input-Output Norms. - **Transferability:** Once the export obligation is completed and the authorization is made transferable, the scrip can be sold in the market or used for further imports. - **Validity:** The authorization for imports is generally valid for 12 months from the date of issue of the transferable endorsement. As per the Foreign Trade Policy 2023 and subsequent updates on the DGFT portal, exporters are advised to file their applications electronically via the DGFT website to ensure real-time tracking of their export obligation discharge certificates (EODC).