Clarification on transfer of inputs to the Notified areas stated in paragraph 4.5 of HBP v.1 under DFIA Scheme - DGFT - 31 (RE-2008)/2004-2009

Clarification on transfer of inputs to the Notified areas stated in paragraph 4.5 of HBP v.1 under DFIA Scheme POLICY CIRCULAR NO 31 (RE-2008)/2004-2009 Dated: September 8, 2008 Subject:- Clarification on transfer of inputs to the Notified areas stated in paragraph 4.5 of HBP v.1 under DFIA Scheme. Attention is invited to paragraph 4.5 and 4.56 of HBP v.1 to be read with the Public Notice No. 34 dated 27.6.08, wherein it has stated that transfer of any duty free material imported or procured against actual user DFIA shall not be transferred to units located in areas covered by the Central Excise Notifications as mentioned in the aforesaid Public Notice. Representations have been received from trade and industry to clarify whether the restriction is applicable for DFIAs with 'No BG/LUT' endorsement or endorsement of transferability. The matter has been examined and accordingly it is clarified that the restrictions on such transfer is limited to advance authorization and DFIA Scheme issued and operated under Actual User condition. Once transferability is endorsed on the DFIA, transfer of the imported/domestically procured input(s) against such DFIA shall not be covered by the restrictive clause of the aforesaid Public Notice. This issues with the approval of Competent Authority. F.No. 01/94/180/ 367/AM09/PC-4 (C. GANGADHARAN) DY. DIRECTOR GENERAL OF FOREIGN TRADE