AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Tax-based export incentive
On 1 May 2015, the Indian Directorate General of Foreign Trade withdrew the duty-free import benefit on raw sugar under the Duty-Free Import Authorisation (DFIA) scheme. The DFIA scheme allows duty-free import of inputs that are to be physically incorporated in export goods, in this case, imports of raw sugar to be used in producing an export product, thereby subsidizing the export product.
Under DFIA, against such duty exemption, the importer is required to meet certain export obligations with regards to the finished goods.
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