What is difference between dfia and advance authorisation

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Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2016 Dear Sir,

what is difference between DFIA and ADVANCE AUTHORIZATION ??

rgds
Suraj Sharma
Ballarpur Industries Ltd

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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01 September 2016 The Duty Exemption Scheme consists of Advance Authorization (AA) and Duty Free Import Authorization ( DFIA). The broad differences between the Authorizations. AA is issued for import of inputs at Zero duty (para 4.03 and 4.14 of current FTP 2015-20. It is granted prior to the completion of export obligation. The initial export obligation period is 18 months the minimum value addition (VA) required to be achieved is 15%. It is subject to actual user condition even after discharge of export obligation. On the other hand DFIA is issued for inputs from exemption of only basic customs duty after discharge of export obligation. The DFIA shall be granted only where Standard Input-Ouput Noms (SION ) are available. The minimum value addition (VA) of 20% shall be required to be achieved. The DFIA is transferable- DFIA or Goods imported under it are transferable. The validity of DFIA is 12 months from the date of issue.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2016 thanks.

it would help full if you can share major differences with some point wises ?

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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01 October 2016 Advance Authorization ( AA) is issued generally before export where as DFIA is issued after export. AA is subject to actual user condition even after export obligation where as DFIA is transferable. The minimum value addition for AA is 15% where as for DFIA is 20%.

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