Correlation of Technical Characteristics, Quality and Specification of the Inputs with the Export Product under the DFIA Scheme - reg

Last updated: 28 July 2025

Notice Date : 24 July 2025

Quick Summary

This notification addresses difficulties faced by the trade in clearing goods under the Duty Free Import Authorisation (DFIA) Scheme. It clarifies the requirement to establish a correlation between the technical characteristics, quality, and specifications of imported inputs and the final exported product, as per the Foreign Trade Policy 2023. The aim is to ease customs procedures for exporters.

Government of India
Ministry of Finance, Department of Revenue
Central Board of Indirect Taxes and Customs
Drawback Division
*******

New Delhi, dated 24th July, 2025.

To
All Principal Chief Commissioners/Chief Commissioners of Customs/Customs (Preventive),
All Principal Chief Commissioners/Chief Commissioners of Customs & Central Tax,
All Principal Commissioners/Commissioners of Customs/Customs (Preventive),
All Principal Director Generals/Director Generals under CBIC.

Subject: Correlation of Technical Characteristics, Quality and Specification of the Inputs with the Export Product under the DFIA Scheme - reg.

Madam/Sir,

I am directed to invite your attention to the provisions of paragraph 4.12, 4.28(iv) and 4.29 of the Foreign Trade Policy, 2023 (i.e. FTP, 2023) and condition (iii) of Notification No.25/2023-Cus dated 01.04.2023 regarding correlation of technical characteristics, quality and specification of the inputs at the time of import with the exported product, under the DFIA Scheme.

2. In this connection, representations have been received from trade stating that difficulties are being faced in clearance of material under DFIA Scheme on account of Customs insisting on establishing close nexus or correlation between the imported goods and the inputs used in the manufacture of exported product - in all cases of imports under the said scheme.

Official copy of the circular has been attached

The DFIA Scheme, as mentioned in the Foreign Trade Policy 2023, allows for duty-free imports of inputs used in the manufacture of exported products.

The notification addresses difficulties faced by traders when customs authorities insist on a strict correlation between imported goods and inputs used in the exported product under the DFIA Scheme.

The notification refers to paragraphs 4.12, 4.28(iv), and 4.29 of the Foreign Trade Policy 2023, and condition (iii) of Notification No. 25/2023-Cus dated 01.04.2023.

The correlation is to ensure that the technical characteristics, quality, and specifications of the imported inputs align with those of the exported product.

This notification is addressed to various customs authorities, including Principal Chief Commissioners/Chief Commissioners and Principal Commissioners/Commissioners of Customs, as well as Director Generals under CBIC.