• CCI AD FROM 5th April 2021

Mandatory recording of information about transfer of DFIA (Duty Free Import Authorization) Scrips and Paperless issuance of DFIA Scrips

 

Circular No. ES/56/2021-22                                                                  26th May, 2021                            

To: Members of the Council            

Sub: Mandatory recording of information about transfer of DFIA (Duty Free Import Authorization) Scrips and Paperless issuance of DFIA Scrips

Dear Member,    

We would like to inform you that O/o DGFT has issued Trade Notice No. 06/2021-22 dated 25th May, 2021 regarding mandatory recording of information about transfer of DFIA (Duty Free Import Authorization) Scrips and paperless issuance of DFIA Scrips.

In order to enable electronic, paperless transactions and facilitate trade, it is submitted that the recording of transferability of DFIA is being made online by O/o DGFT. In this connection, a facility has been created on DGFT website to record the information about transfer of DFIA scrips.

  • The recording of given information would allow the transferee to apply for ARO/ Invalidation against the said DFIA Scrip online.

  • The given transfer of DFIA scrips, shall be recorded under the relevant module on the DGFT website (https://dgft.gov.in) >>> Services >>> AA/DFIA.

  • Detailed procedure for recording of transfer of DFIA scrips is annexed to Trade Notice No. 06/2021-22 dated 25th May, 2021.

 

Further, the issuance of paper copies of DFIA scrips (for EDI Ports) shall be discontinued w.e.f. 7th June, 2021. Security Paper copies of DFIA Scrips shall continue to be issued for Non-EDI Ports. Any transfer of DFIA Scrips issued on or after this date shall be mandatorily recorded in the online system. The record of such transfers shall be mandatory for EDI ports as well as non-EDI Ports.

For cases where the DFIA scrip was issued prior to 7th June, 2021 and an ARO/Invalidation is to be requested against the DFIA Scrip, the details of the transfer of the said scrip (if any) would also be required to be recorded in the DGFT online system.

For cases, where the ARO/invalidation is being requested by the original scrip owner, no such record of transfer would be required.

For cases where scrips were issued prior to 7th June, 2021 and no request for ARO/Invalidation is to be made as on this date or after, the recording of any transfer of the given scrip shall not be mandatory.

  • The DFIA scrip owner shall ‘transfer’ the scrip to another IEC in the same manner as was being done by them earlier i.e. as per the independently negotiated terms & conditions between the buyer and the seller.

  • However, the information about the new owner (transferee) has to be recorded on the DGFT website by the original owner (transferor), before the new owner (transferee) can utilize the scrip to obtain any ARO/ Invalidation.

  • It is mandatory for both transferor and transferee to ensure that information regarding transfer is recorded.

  • After the information is confirmed on the DGFT e-platform, the old owner cannot re-record the transfer, and only the new owner can record and further transfer/retransfer.

  • It should be noted that unless recorded on DGFT website, the new owner (transferee) will not be able to utilize the scrip.

  • Therefore, the new owner (transferee) has to ensure that the scrip is recorded in his favour by the old owner (transferor).

  • DGFT/Customs shall not be responsible for any lapse by the old or new owner or any dispute in this regard.

  • Applicants will continue to apply for DFIA as per online procedure and the Regional Authorities will continue to issue the DFIA scrips in online module.

  • The applicant would also continue to apply for ARO/Invalidation as per online procedure.

  • The applicant for ARO/Invalidation shall be the current owner of the scrip as recorded in the DGFT online system.

In case of any difficulty, members may kindly contact the O/o DGFT, New Delhi. For guidance on these new processes, the Help manual & FAQs may be accessed at https://dgft.gov.in  >>>  Learn >>>  ‘Application Help & FAQs’. For any further assistance, members may kindly utilize any of the following channels –

I.    Raise a service request ticket through the DGFT Helpdesk service under Services >>>            'DGFT Helpdesk Service'.

II.   Call the toll-free Helpdesk number

III.   Send an email to the Helpdesk on dgftedi@gov.in.

Members may kindly make a note of the above and do the needful accordingly.

Thanking you, 

Yours faithfully,  

S. BALARAJU  
EXECUTIVE DIRECTOR