TRANSFERABLE LICENSE

DFIA License for Post-Export Benefits

Convert your exports into a tradeable asset. Duty Free Import Authorisation allows you to import raw materials without BCD or sell the license in the open market.

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What is Duty Free Import Authorisation?

Duty Free Import Authorisation (DFIA) is an export incentive scheme issued to allow duty-free import of inputs. Unlike Advance Authorisation, DFIA is issued on a post-export basis for products for which Standard Input Output Norms (SION) are notified.

The key feature of DFIA is Transferability. Once the export obligation is fulfilled and the license is endorsed as "Transferable" by DGFT, it can be sold to any other importer. The buyer can use it to import the specified raw materials without paying Basic Customs Duty (BCD).

Key Advantages

Why Choose DFIA?

Sell in Market

Once transferable, you can sell the license at a premium to other importers, converting duty savings into direct cash profit.

Exemptions

Exempts Basic Customs Duty (BCD). Note: IGST is usually payable under DFIA unless specific notifications apply.

SION Based

Issued only for products with fixed SION norms. Requires a minimum value addition of 20% (higher than Advance Authorisation).

Important Restriction

Inputs imported under DFIA cannot be used for manufacturing export products where other benefits like Drawback are claimed. It works best for exporters who have already paid duty on inputs and want a transferable credit.

Lifecycle

From Application to Sale

Step-by-step guide to monetizing your DFIA.

1

Export

File Shipping Bill under DFIA Scheme. Ensure No Drawback is claimed.

2

Apply

File online application to DGFT with E-BRC and Shipping Bill details.

3

Transferability

DGFT issues the license. Submit documents to make it Transferable.

Sale / Import

Sell the license in the market or use it to import inputs duty-free.

Professional Services

DFIA Consultancy

Full Service

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Based on CIF Value

  • File Number Generation
  • SION Norms Checking
  • Online Application Filing
  • Transferability Endorsement
  • License Sale Assistance
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Why CloudDesk for Dfia-License?

A DFIA license is only as valuable as its 'Transferability.' CloudDesk ensures your license is market-ready and high-value.

1. High-Precision SION Mapping

DFIA is only available for products listed under SION (Standard Input-Output Norms). You cannot use Ad-hoc norms here.CloudDesk performs a SION-Match Audit to ensure your export product fits perfectly into a predefined norm, guaranteeing the license will be issued without technical disputes.

2. The "20% Value Addition" Shield

While Advance Authorisation requires 15% value addition, DFIA mandates a minimum of 20%.CloudDesk’s Financial Modeller calculates your input-output ratios before you export, ensuring you don't fall short by 1% and disqualify your entire claim for transferability.

3. End-to-End Redemption & Transfer

The magic happens after the export. We handle the Redemption (EODC) at DGFT. Once the "Transferable Endorsement" is received, we help you navigate the secondary market to find the best premium,turning your duty-free entitlement into immediate liquidity.

4. Post-Export IGST/BCD Optimization

In 2026, DFIA only exempts Basic Customs Duty (BCD).CloudDesk advises on how to handle the IGST portion (via ITC or Drawback) so you don't lose your tax benefits while trying to trade the license.

Frequently Asked Questions

What is the main difference between DFIA and Advance Authorisation (AA)?

"• Advance Authorisation: Pre-import (mostly), non-transferable, subject to ""Actual User"" condition. • DFIA: Post-export (mostly), freely transferable (you can sell it), no ""Actual User"" condition after transfer."

Which sectors benefit most from DFIA?

It is highly popular in sectors with stable SION norms like Chemicals, Textiles, Leather, and Food products (like biscuits or processed foods).

Can I apply for DFIA before exporting?

Yes, you apply for the "Authorisation" before export. However, the transferability is only granted after you have completed the exports and the bank has realized the foreign exchange.

What is the "Value Addition" requirement for DFIA?

You must achieve at least 20% Value Addition. For example, if you import raw materials worth ₹100, you must export the finished product for at least ₹120.

Are there any items excluded from DFIA?

Yes. Items that don't have a SION norm or items that fall under specific restricted categories (like certain high-risk chemicals) cannot be imported under DFIA.

Does DFIA cover IGST and GST?

No. As of 2026, DFIA only provides exemption from Basic Customs Duty (BCD). IGST must be paid at the time of import (though it can be claimed as Input Tax Credit).

How do I "Sell" my DFIA license?

Once the DGFT makes the license "Transferable," it becomes a negotiable instrument. You can sell it to another importer through a simple letter of transfer. CloudDesk’s License Exchange network connects you with verified buyers.

What is the "Market Premium" for DFIA?

The premium varies based on the demand for the raw materials listed in your license. Typically, you can sell a license for a percentage of the duty-saved value. CloudDesk tracks daily market rates to get you the best deal.