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durga prasad bahety (CA FINAL) (120 Points)

12 December 2013

HI,

How we would show the DFIA license in to the books of Accounts? What would be the entries? And the closing effect.

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NOUFAL (ACCOUNTANT) (762 Points)
Replied 19 December 2013

For Duty Free Import Authorisation (DFIA) applications

GUIDELINES FOR APPLICANTS

Two copies of the application must be submitted unless otherwise mentioned.
Each individual page of the application has to be signed by the applicant.
a. Part 1 & Part 4 has to be filled in by all applicants. In case of applications submitted electronically, no hard copies of Part 1 may be submitted. However in cases where applications are submitted otherwise, hard copy of Part 1 has to be submitted.

b. Only relevant portions of Part 2 need to be filled in.

Application must be accompanied by documents as per details given below:

V. For Duty Free Import Authorisation

Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application fee in terms of Appendix 21B.

2. In cases where import of fuel has been sought for the grant of Duty Free Import Authorisation:

a. Self certified copy of the permission issued to the manufacturer exporter by the competent authority (concerned State Electricity Board or Power Corporation or Regulatory Commission of the State) under Section 44 of the Electricity (Supply) Act, 1948 for the installation of captive power plant based on the specified fuel unless the permission is specifically waived by the State Electricity Board; and

Self certified copy of the letter intimating the date of commissioning of the captive power plant from the concerned authority which issued the permission letter, is to be submitted.

Note: The import of only such fuel(s) shall be allowed which have/ has been specified in the said permission.

Additional documents required in case of supplies under deemed export/intermediate supplies under Duty Free Import Authorisation :

Invalidation letter in case of supplies to

i. an EPCG Authorisation holder;

an Advance Authorisation holder;
a Duty Free Import Authorisation

b. Project Authority certificate in case of supplies other than (a) (i), (ii) & (iii) above and to EOU/ EHTP/ STP/BTP units;

PART 1

Note: Please state ‘Not Applicable’ wherever the information/data is not applicable to you.

1. IEC Details

i. IEC Number

ii. Date of Issue

iii. Issuing Authority

2. Applicant Firm Details

i. Name

ii. Address

(Registered Office in case of Companies and
Head Office in case of Others)

iii. Address of all Branches/Divisions/Units/Factories
located in India & abroad (attach extra sheet if required)

iv. Telephone

v. Email address (for correspondence with DGFT)

3. Details of Proprietor/Partners/Directors/Karta/Trustee
of the applicant firm (attach extra sheet if required)

i. Name

ii. Father's Name

iii. Residential Address

iv. Telephone

4. Nature of Concern (please tick) ( √ )
i. Government Undertaking
ii. Public Limited Company
iii. Private Limited Company
iv. Proprietorship
v. Partnership
vi. Others

5. Type of Exporter (please tick) ( √ )
i. Merchant Exporter
ii. Manufacturer Exporter
iii. Service Provider
iv. Others (please specify)
v. Merchant cum Manufacturer

6. Industrial Registration Details

i. SSI/IEM/LOI or IL Registration Number

ii. Date of Issue

iii. Issuing Authority

iv. Products for which registered

7. Service Tax Registration Details (in case of Service providers)

i. Service Tax Registration Number

ii. Issuing Authority

iii. Services for which registered

8. RCMC Details

i. RCMC Number

ii. Date of Issue

iii. Issuing Authority

iv. Valid upto

v. Products for which registered

9. Status House Details

i. One/Two/Three/Four/Five Star

ii. Certificate Number

iii. Date of Issue

iv. Issuing Authority

v. Valid Upto

10. PAN Details

i. PAN Number

iii. Issuing Authority

11. Excise Details

i. Excise Registration Number

ii. Issuing Authority

12. VAT Details

i. VAT Registration Number

ii. Issuing Authority

13. Turnover Details for the preceding three licensing years

FY	Annual Domestic Turnover (Rs Lakhs)	Annual Export Turnover (Rs Lakhs)

PART 2

1. IEC Number

2. Applicant Details

i. Name

ii. Address

3. Application for (please tick the category for which the application is being made) : ( √ )
I. Importer Exporter Code Number (IEC)
II. Import Licence for Restricted Items
IIA. Import Certificate under Indo - US Memorandum
III. Export Licence for Restricted Items
IIIA. Export Licence for SCOMET Items
IV. Star Export House Certification
V. Advance Authorisation / DFRC
VA. Gem Replenishment Authorisation
VB. Diamond Imprest Authorisation
VC. DEPB
VD. Duty Free Import Authorisation	√
VI. EPCG Authorisation
VII. Served from India
VIII. Vishesh Krishi And Gram Udyog Yojana (VKGUY)
IX. Target Plus Scheme
X. Claiming Duty Drawback on All Industry Rates/Fixation of Drawback Rates/Refund of Terminal Excise Duty
XA. Focus Market Scheme
XB. Focus Product Scheme

4. Application Submission Details (in case of electronically submitted applications)

i. ECOM Reference Number

ii. Date of Submission on Server

iii. Submitted to which Regional Authority

iv. File Number

v. Date of Issue

5. Application Fee Details

Amount (Rs)

Demand Draft/Bank Receipt/Electronic Fund Transfer No

Date of Issue

Name of the Bank on which drawn

Bank Branch on which drawn

Note;

1. Only one category of application may be made in the Form.

2. In case of application for issue of IEC number, information at Serial No 1 may be left blank.

SUB SECTION VD

( For Duty Free Import Authorisation)

1. Total CIF value of Imports applied for

i. In Rupees

ii. In currency of imports

iii. In US $

2. Total FOB/FOR value of Exports to be made, including commission

i. In Rupees

ii. In currency of exports

iii. In US $

3. Value Addition (in %):

4. Port of Registration (for the purpose of imports):

i. Application made for Export Product Group:

ii. Application made under which Serial No. of SION:

6. Details of items to be exported/supplied under the Authorisation

S No	Item Descripttion	Item Technical Characteristics/Quality etc.	ITC(HS) Code	Quantity	Unit of Measurement	FOR /FOB Value (in Rs)	FOR/FOB value (in freely convertible currency)
S No	Item Descripttion	Item Technical Characteristics/Quality etc.	ITC(HS) Code	Quantity	Unit of Measurement	FOR /FOB Value (in Rs)	Value	Currency Code

7. Details of items sought to be imported duty free under the Authorisation

S No	Item Descripttion	Item Technical Characteristics/ Quality etc.	ITC(HS) Code	Quantity	Unit of Measure-ment	CIF Value (in Rs)	CIF value (in freely convertible currency)		Total exemption from Customs duty
							Value	Currency Code

8. Details of other materials to be used in the export product and sought to be imported/procured from sources other than the Authorisation on which drawback benefits is to be availed (not to be filled if Drawback benefits are not being claimed)

S No	Imported Item			Indigenously Procured Item
S No	Name, Technical Characteristics/Quality etc	Quantity in metric units	CIF Value	Name, Technical Characteristics/Quality etc	Quantity in metric units	Value

9. Details of Outstanding Export Obligation against DFIA, Advance Authorisation(s) including Advance Authorisation for Annual Requirements issued already

S No	Authorisation No	Authorisation Date	CIF Value (Rs)	FOB Value (Rs)	%age of EO fulfilled		Expiry Date of EO period
S No	Authorisation No	Authorisation Date	CIF Value (Rs)	FOB Value (Rs)	Qty wise	Value wise	Expiry Date of EO period

10. Details of exports/deemed supplies made in the preceding 3 licensing years:

Licensing Year	FOB Value of exports (in Rs Crore)	FOR Value of deemed supplies (in Rs Crore)	Total Export Performance (in Rs Crore)

11. In case of exports made under Deemed Exports category (except for supplies to Advance Authorisation/DFIA/ EPCG Authorisation holders/EOU/EHTP/STP/BTP), please furnish:

i. Name of the Project Authority

ii. Address of the Project Authority

iii. Supply Order No

iv. Delivery period of Supply

v. Credit under which project is financed

vi. Method by which order is procured (ICB etc.)

12. In case of request for issuance of Invalidation letter/ARO:

I. Request is for issuance of (Please tick):	( √ )
A. Invalidation letter
B. Advance Release Order (ARO)

If so, then please furnish the following details: (i and ii below need not be filled up in case the applicant desires the Invalidation Letter/ARO along with the issuance of DFIA)

i. Duty Free Import Authorisation No.

ii. Date of Issue of Duty Free Import Authorisation

iii. Name of the Indigenous producer from where items are to be procured

iv. Address of the Indigenous producer from where items are to be procured

v. Regional Authority of the Indigenous producer

vi. Items to be supplied by the Indigenous producer

a. Descripttion of individual items

b. Quantity of individual items to be procured

c. Value of individual items to be procured

13. Address of the factory/premises where the items to be imported are proposed to be used

14. Address of the jurisdictional Central Excise Authority under whose jurisdiction the factory/premises falls

15. In case the items to be imported are to be used by the supporting manufacturer, please furnish

i. Name of the supporting manufacturer

ii. Address of the supporting manufacturer

iii. SSI/LOI/IL regn no. and date of Supporting Manufacturer

iv. Products endorsed on SSI/IL/IEM

PART 4

DECLARATION/UNDERTAKING

1. I/We hereby declare that the particulars and the statements made in this application are true and correct to the best of my/our knowledge and belief and nothing has been concealed or held there from.

2. I/We fully understand that any information furnished in the application if found incorrect or false will render me/us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted.

3. I/We undertake to abide by the provisions of the Foreign Trade (Development and Regulation) Act, 1992, the Rules and Orders framed there under, the Foreign Trade Policy, the Handbook of Procedures and the ITC(HS) Classification of Export & Import Items.

a. I/We hereby certify that the firm/company for whom the application has been made has not been penalized under the Customs Act, Excise Act, Foreign Trade (Development & Regulation) Act 1992 and FERA/FEMA.

b. I/We hereby certify that none of the Proprietor/ Partner(s)/ Director(s)/Karta/Trustee of the firm/company, as the case may be, is/are a Proprietor/Partner(s)/Director(s)/Karta/Trustee in any other firm/Company which has come to the adverse notice of DGFT.

c. I/We hereby certify that the Proprietor/Partner(s)/Director(s)/Karta/Trustee, as the case may be, of the firm/company is/are not associated as Proprietor/Partner(s)/Director(s)/Karta/Trustee in any other firm/company which is in the caution list of RBI.

d. I/We hereby certify that neither the Registered Office/Head Office of the firm/company nor any of its Branch Office(s)/Unit(s)/Division(s) has been declared a defaulter and has otherwise been made ineligible for undertaking import/export under any of the provisions of the Policy.

5. I/We hereby declare that I/We have not obtained nor applied for such benefits (including issuance of an Importer Exporter Code Number) in the name of our Registered/Head Office or any of our Branch(s)/Unit(s)/Division(s) to any other Regional Authority.

5A. I/ We hereby declare that I/we have perused the list of SCOMET items as contained in the Appendix 3 to the Schedule 2 of the ITC (HS) Classifications of Export-Import Items, 2004-09 and that the item(s) exported / proposed to be exported does not fall within this list and that I/ We agree to abide by the provisions of the Policy for export of SCOMET items contained in the Foreign Trade Policy, Schedule 2 of ITC (HS) and the Handbook of Procedures (Vol.1), irrespective of the scheme under which the item is exported / proposed to be exported (the underlined portion will be deleted in case an application for export license for SCOMET item is being filed).

6. I/We solemnly declare that I/We have applied for / obtained a RCMC to the Export Promotion Council which pertains to our main line of business. In case we have applied to any other council, the application has been made within the purview of the provisions of Para 3.12 and Para 3.12.1 of the Handbook of Procedures (Vol 1).

7. I/We hereby declare that we shall only import inputs which are required for the manufacture of the export product(s) and no part of it shall be sold/transferred/disposed off unless the DFIA is made transferable or utilised in a manner in contravention to the provisions of the Policy and Handbook.

8. I/We hereby declare that no export proceeds are outstanding beyond the prescribed period as laid down by RBI or such extended period for which RBI permission has been obtained.

18. I hereby certify that I am authorised to verify and sign this declaration as per Paragraph 9.9 of the Policy.

Signature of the Applicant Place

Name Date

Designation

Official Address

Telephone

Residential Address

Email Address
For (I) Redemption of Advance Authorisation/ Duty Free Import Authorisation; (II) Endorsement of Transferability on the Duty Free Import Authorisation

GUIDELINES FOR APPLICANTS

Two copies of the application must be submitted unless otherwise mentioned.
Each individual page of the application has to be signed by the applicant.
a. Part 1 & Part 4 has to be filled in by all applicants. In case of applications submitted electronically, no hard copies of Part 1 may be submitted. However in cases where applications are submitted otherwise, hard copy of Part 1 has to be submitted.

b. Only relevant portions of Part 3 need to be filled in.

Application must be accompanied by documents as per details given below:

a. For physical exports:

1. Bank Certificate of Exports and Realisation in the form given at Appendix 22A or Foreign Inward Remittance Certificate (FIRC) in the case of direct negotiation of documents or Appendix 22D in case of offsetting of export proceeds. However, realisation of export proceeds shall not be insisted if the shipments are made against confirmed irrevocable letter of credit or bill of exchange is unconditionally Avalised/ Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank and certified by the bank in column 14/15 of Appendix 22A.

2. EP copy of the shipping bill(s) containing details of shipment effected or bill of export in case of export to SEZ

3. A statement of exports giving details of shipping bill wise exports indicating the shipping bill number, date, FOB value as per shipping bill and descripttion of export product

4. A statement of imports indicating bill of entry wise item of imports, quantity of imports and its CIF value.

b. For deemed exports:

1. A copy of the invoice or a statement of invoices duly signed by the unit receiving the material and their jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply. However in case of supply of items which are non excisable or supply of excisable items to a unit producing non excisable product(s), a Project Authority Certificate (PAC) certifying quantity, value and date of supply would be acceptable in lieu of excise certification. However, in respect of supplies to EOU/EHTP/ STP/ BTP, a copy of CT-3/ARE-3 duly signed by the jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply can be furnished in lieu of the excise attested invoice (s) or statement of invoices as given above.

2. Payment certificate from the project authority in the form given in Appendix-22C. In the case of Advance Authorisation for Intermediate Supplies/ deemed exports, supplies to the EOUs/ EHTPs/STPs/ BTPs, documentary evidence from the bank substantiating the realisation of proceeds from the Authorisation holder or EOUs/EHTPs/ STPs/ BTPs, as the case may be, through the normal banking channel, shall be furnished in the form given at Appendix 22B. However realisation of proceeds shall not be insisted upon if the shipments are made against confirmed irrevocable inland letter of credit or inland bill of exchange is unconditionally Avalised/ Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank and certified by the bank in column 5/6/7 of Appendix 22B.

3. A statement of supplies giving details of supply invoices and indicating the invoice number, date, FOR value as per invoices and descripttion of product