• The Authorisation shall be issued on the basis of inputs and export items given under Standard Input and Output Norms (SION). The import entitlement shall be limited to the quantity mentioned in SION.
• Such Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s)
• A minimum 20% value addition shall be required for issuance of such Authorisation.
• Once export obligation has been fulfilled, request for transferability of the Authorisation or the inputs imported against it may be made before the Regional Authority. Once, transferability is endorsed, the Authorisation holder will be at liberty to transfer the duty free inputs, other than fuel and any other item (s) notified by DGFT for this purpose.

Advance Authorisation (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 Duty Free Import Authorisation 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-Output Norms (SION ) are available. The minimum value addition (VA) of 20% shall be required to be achieved. The Duty Free Import Authorisation  is transferable - DFIA or Goods imported under it are transferable. The validity of Duty Free Import Authorisation is 12 months from the date of issue.

• Manufacturer exporter as well as Merchant exporter are eligible to apply for Duty Free Import Authorisation  License. Merchant exporter is required to mention the name and address of the supporting manufacturer in all the export document like shipping bills, bill of export/Tax invoice as specified under the GST rules.
• The applicant has to apply for an application to concerned DGFT RA before starting to export under duty-free import authorization.
• Duty-free import authorization shall not be issued for an import that is subject to pre-import condition. DFIA license shall also be not issued for an actual user condition or products mentioned in Appendix- 4J like Spices, Tea, Coconut oil, precious metals/Gold/Silver/Platinum, etc.

To apply for DFIA one can visit dgft.gov.in and fill up the form ANF - 4G. The documents required are mentioned in chapter-4 of Foreign Trade Policy (2015-2020) and Handbook of Procedures. IEC is mandatory for applying for any type of Authorisation Schemes.

Services > Advance Authorisation /DFIA > Apply for DFIA file number (ANF 4G) / Transferable 

DFIA (ANF 4G)

• Importers needs to register on DGFT Website by login on https://www.dgft.gov.in/
• Link the existing IEC (For more details please see IEC section FAQ’s)
• Register the DSC under My Dashboards > View and Register Digital Signatures Token.
• For applying for “Transferable DFIA”, DFIA file number shall be generated.

Then,

• My Dashboard > Submitted Applications
• Enter Type of Scheme (Select in dropdown: Duty Free Import Authorisation (DFIA)) and Type

of Sub Scheme (Application for DFIA File Number)

• Click on Search
• Click on Action (Under the Results) > View Approved Letter