Benefit of DFIA Scheme to Rupee Payment Area countries – DGFT clarifies
Trade and Industry have represented that exports to Rupee Payment Area (RPA) countries are entitled for Advance authorisation scheme in terms of paragraph 4.1.6 of FTP. Since reference to this paragraph has not been specifically mentioned in the said paragraph, a doubt has been raised by Trade and Industry as to whether DFIA scheme benefit is available to exports made to RPA countries.
Now the DGFT clarifies that the benefit of DFIA scheme is available for exports made to RPA countries as well, subject to
1. achievement of value addition, either prescribed in DFIA scheme or as specified in Appendix 11 of HBP v1 or
2. value addition prescribed for specific product (s) under Advance Authorisation scheme,
Whichever is higher.
DGFT POLICY CIRCULAR NO. 13 (RE-07)/2004-2009 Dated: October 1, 2007