Importability of Alternative inputs allowed as per SION under DFIA Scheme
A doubt has arisen in the field formations of Customs on the issue of allowing alternative inputs as per SION under DFIA scheme, even if the input mentioned in the SION , has not been specifically utilized in the manufacture of the exported product.
DGFT has clarified that since the objective of SION is to allow duty free import of the inputs which are actually used or are capable of being used in the export product, the exporter has the flexibility to import the alternative input/product mentioned in the SION.
DGFT Policy Circular No. 72 (RE-08)/2004-2009 Dated: March 24, 2009