Quantity of input to be allowed under DFIA to be proportionate to quantity of input actually used in production: DGFT
Updated: Aug 21, 2014 05:12:03pm
New Delhi, Aug 21 (KNN) Quantity of input to be allowed under Advance Authorisation/DFIA (Duty Free Import Authorisation) shall be in proportion to the quantity of input actually used/consumed in production, Directorate General of Foreign Trade said today.
DFIA is issued to allow duty free import of inputs, fuel, oil, energy sources, catalyst which are required for production of export product. DGFT, by means of Public Notice, may exclude any product(s) from purview of DFIA.
According to the Foreign Trade Policy, wherever SION (Standard Input Output Norms) permits use of either - a generic input or alternative inputs, unless the name of the specific inputs, which have been used in manufacturing the export product, gets indicated / endorsed in the relevant shipping bill and these inputs, so endorsed, match the description in the relevant bill of entry, the concerned Authorisation will not be redeemed.
In other words, the name/description of the input used (or to be used) in the Authorisation must match exactly the name/description endorsed in the shipping bill.
According to a DGFT notification, “In addition in case in any SION, a single quantity has been indicated against number of inputs (more than one input), then quantities of such inputs to be permitted for import shall be in proportion to the quantity of these inputs actually used/consumed in production, within overall quantity against such group of inputs.
Proportion of these inputs actually used/consumed in production of export product shall be clearly indicated in shipping bills, it added.
At the time of discharge of export obligation (EODC) or at the time of redemption, RA shall allow only those inputs which have been specifically indicated in the shipping bill, it said. (KNN/SD)
DFIA is issued to allow duty free import of inputs, fuel, oil, energy sources, catalyst which are required for production of export product. DGFT, by means of Public Notice, may exclude any product(s) from purview of DFIA.
According to the Foreign Trade Policy, wherever SION (Standard Input Output Norms) permits use of either - a generic input or alternative inputs, unless the name of the specific inputs, which have been used in manufacturing the export product, gets indicated / endorsed in the relevant shipping bill and these inputs, so endorsed, match the description in the relevant bill of entry, the concerned Authorisation will not be redeemed.
In other words, the name/description of the input used (or to be used) in the Authorisation must match exactly the name/description endorsed in the shipping bill.
According to a DGFT notification, “In addition in case in any SION, a single quantity has been indicated against number of inputs (more than one input), then quantities of such inputs to be permitted for import shall be in proportion to the quantity of these inputs actually used/consumed in production, within overall quantity against such group of inputs.
Proportion of these inputs actually used/consumed in production of export product shall be clearly indicated in shipping bills, it added.
At the time of discharge of export obligation (EODC) or at the time of redemption, RA shall allow only those inputs which have been specifically indicated in the shipping bill, it said. (KNN/SD)
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