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Duty Exemption Schemes
What is Duty Exemption Scheme:
Duty Exemption Scheme validates duty-free import of inputs required for export production. It includes Advance Authorisation and Duty-Free Import Authorisation Scheme (DFIA) which enables exporter to import duty-free inputs required for goods to be exported. The exporter can also purchase domestic inputs under this scheme by obtaining Invalidation letter. Interlink Capital provides, Duty Remission and Duty Exemption Scheme services and helps you to avail the exemption benefits. These schemes enable exporter to avail exemption at the input stage thereby reducing blockage of funds in duties.
How our Duty Exemption Scheme expert’s assist you to get DEEC (Duty Exemption Entitlement Certificate)(DEEC Scheme):
Obtaining Advance Authorisation and Duty-Free Import Authorisation from Director General of Foreign Trade (DGFT),
Guiding w.r.t. documentation and procedural requirement related to Advance Authorisation and Duty-Free Import Authorisation,
Assistance in compliances with DGFT post-Advance Authorisation and Duty-Free Import Authorisation and
Getting Export Obligation Discharge Certificate and release of Bond after fulfilling the export obligation.
We help you to take Advance Authorization (AA) from the regional DGFT offices, if you use your imported product as an input to manufacturing your resultant exported product. Items reserved for import through State Trading Enterprises (STEs) can be imported against Advance Authorization/ DFIA provided the item of import is canalized/ bought through STEs or after obtaining “No Objection Certificate” from STEs. In Duty exemption scheme, duty free import of inputs is allowed, that are physically incorporated in the export product with minimum 15% value addition. AA normally has a validity period of 12 months for making imports and a period of 18 months for the fulfilment of Export Obligation (EO) from the date of issue. AA is issued either to a manufacturer exporter or merchant exporter tied to a supporting manufacturer. To know more about Duty exemption and remission read DGFT Foreign Trade policy
DFIA is a variant to Advance Authorization Scheme. It is different from Advance Authorization as a higher minimum value addition of 20% is required, as compared to only 15% in Advance Authorization. It is popular with exporters who export first and then obtain the authorization, which can be sold freely.