A GTRI research, using a whistleblower tipoff, on the Duty-Free Import Authorisation Scheme has laid bare the modus operandi being used by importers to bring in high-value and high import duty goods avoiding large customs duties.The DFIA scheme, run by the Directorate General of Foreign Trade, lets exporters import raw materials without paying customs duty—on the condition that these inputs are genuinely used in the production of exported goods. The licence is based on pre-approved input norms, which define what can be imported for each export product. However, once exports are completed, these licences can be transferred to others.
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