The main financial advantages of the duty exemption and remission scheme are stated below:

  • Under the Duty Exemption Scheme, duty-free import of inputs/products, that are needed for export production is permitted
  • Under the Duty Remission Scheme, post export replenishment of the duty on inputs/products that was used for the exported product is provided

An exporter must take Advance Authorization (AA) from the regional DGFT offices, if he or she uses his or her imported product, as an input to manufacture the resultant exported product. No Advance Authorization can be given for import of items that fall under the prohibited list. An Advance Authorization is however allowed for import of restricted items with certain conditions. Items reserved for import through State Trading Enterprises (STE’s), can be imported against Advance Authorization/ DFIA, provided the item of import is canalized/ purchased  through STE’s/ or after obtaining a No Objection Certificate from STE’s.