IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 May 2015 | Removal date: open ended
Still in force

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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

232 Starches & starch products; sugars & sugar syrups n.e.c.
233 Preparations used in animal feeding; lucerne meal & pellets
234 Bakery products
235 Sugar & molasses
236 Cocoa, chocolate & sugar confectionery
237 Macaroni, noodles, couscous & similar farinaceous products
239 Food products n.e.c.
241 Ethyl alcohol; spirits, liqueurs & spirits
242 Wines
243 Malt liquors & malt
244 Soft drinks; bottled mineral waters

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