Case Law Details
In re Proventus Agrocom Pvt Ltd. (CAAR Mumbai)
The Customs Authority for Advance Ruling (CAAR), Mumbai, examined an application filed by Proventus Agrocom Pvt. Ltd. seeking an advance ruling on whether imports of Inshell Walnuts under Transferable Duty Free Import Authorisations (DFIAs) issued against exports of assorted confectionery, biscuits, vegetable pickles, and namkeens/mixtures/savories would qualify for exemption from Basic Customs Duty (BCD) under Notification No. 25/2023-Cus dated 01.04.2023. The applicant sought clarification on three issues: entitlement to exemption without demonstrating actual use of the imported goods in exported products, applicability of exemption without actual user conditions and value cap restrictions, and whether matching of ITC (HS) codes between the DFIA and imported goods was mandatory.
The applicant contended that the proposed imports were covered by the descriptions in the relevant Standard Input Output Norms (SION) and that the imported goods fell within the description, quantity, and value specified in the transferable DFIAs. It argued that Inshell Walnuts were covered under broader descriptions such as “Nut and Nut Products,” “Dietary Fibre,” “Food Flavours,” and “Relevant Food Additives.” The applicant further relied on provisions of the Foreign Trade Policy (FTP), CBIC Circular No. 20/2025-Cus, various judicial precedents, and policy circulars to submit that correlation of technical characteristics was required only for sensitive inputs under Paragraph 4.29 of the FTP, that transferable DFIAs were not subject to actual user restrictions, and that ITC (HS) code matching was not prescribed under the FTP, Handbook of Procedures, or Notification No. 25/2023-Cus.
The jurisdictional Commissionerate opposed the applicant’s interpretation. It submitted that exemption under Notification No. 25/2023-Cus remained conditional upon the imported materials matching the description, value, and quantity specified in the DFIA and that the DFIA scheme was based on inputs corresponding to those used in the manufacture of exported goods. According to the Commissionerate, allowing imports of goods that did not reasonably correlate with the declared export inputs would be inconsistent with the DFIA framework. It further observed that Inshell Walnuts did not prima facie qualify as food flavours, food additives, or dietary fibre in the context of the relevant SION entries and that ITC (HS) code differences were a significant indicator of the nature of goods.
During the personal hearings, the applicant reiterated that the imported goods were covered by the relevant SION descriptions, that the DFIAs were transferable, and that exemption under Notification No. 25/2023-Cus was available subject to compliance with the notification. The applicant also maintained that input-output correlation was unnecessary because the goods were not sensitive inputs under Paragraph 4.29 of the FTP and relied on judicial decisions supporting its position.
After examining the Customs Act, the Foreign Trade Policy, the Handbook of Procedures, Notification No. 25/2023-Cus, CBIC circulars, and the DFIA framework, the Authority observed that exemption under the notification is conditional upon compliance with the prescribed requirements. A valid transferable DFIA must be produced at the time of clearance, the authorisation must contain the required SION details and endorsements, and the imported goods must satisfy the description, quantity, and value specified in the authorisation. The Authority noted that DFIA licences are issued for duty-free import of inputs under notified SIONs and that sensitive inputs under Paragraph 4.29 require additional declarations regarding technical characteristics, quality, and specifications. It also referred to CBIC Circular No. 20/2025-Cus, which clarified that such technical correlation is required only for inputs listed under Paragraph 4.29 of the FTP and not for other inputs.
The Authority further observed that the issue before it concerned interpretation of the statutory framework rather than product-specific SION examination. Referring to the General Notes for Export Product Groups issued by the DGFT, it noted that goods imported under generic descriptions should be those actually used, required, or capable of being used in the export product, while quantity and value limitations prescribed under the SION must also be respected. Since SION norms and DFIAs are issued by the DGFT, the Authority clarified that interpretation or modification of SION norms falls within the DGFT’s domain.
On the issue of ITC (HS) codes, the Authority relied upon CBIC Circular No. 46/2007-Cus and DGFT policy circulars, observing that matching of ITC (HS) codes is not required so long as the imported goods fit the description contained in the DFIA licence, are actually used or are capable of being used in the exported product, and all other conditions relating to quantity and value under Notification No. 25/2023-Cus are satisfied. The Authority also referred to previous judicial decisions and earlier advance rulings which recognised broader SION descriptions, including rulings relating to Inshell Walnuts, while emphasising compliance with DFIA licence conditions.
Accordingly, the Authority answered all three questions. It ruled that exemption under Notification No. 25/2023-Cus is available for import of non-sensitive inputs under transferable DFIAs where the imported goods fall within the specific SION description endorsed in the DFIA, are not covered by Appendix 4J, remain within the authorised quantity and value limits, and all statutory conditions are fulfilled. It clarified that the exemption remains subject to strict compliance with the DFIA scheme and that any applicable actual user condition cannot be violated. Regarding value restrictions, it held that imports must remain within the CIF value and quantitative ceilings endorsed in the DFIA licence. Finally, it ruled that matching of ITC (HS) codes between the DFIA and imported goods is not required, provided the imported goods satisfy the DFIA description, are actually used or capable of being used or required in the exported product, and all conditions of Notification No. 25/2023-Cus are fulfilled.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Proventus Agrocom Pvt Ltd having IEC No. 0316916706 (hereinafter referred as “The Applicant”) filed an application for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling, Mumbai. The said application was received in the secretariat of the CAAR, Mumbai on 04.02.2026, along with its enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’). The applicant is seeking advance ruling to claim exemption from payment of Basic Customs Duty (BCD) under Notification No. 25/2023-Cus dated 01.04.2023 against their proposed import of Inshell Walnuts against valid Transferable Duty Free Import Authorisations (DFIAs) issued by the Regional Authority in terms of Paragraph 4.24 and Paragraph 4.26 of Foreign Trade Policy subject to conditions specified therein.
Facts submitted by the Applicant:
2.1 The Applicant is a Public Limited Company having Pan Card No. AAJCM9814C. The applicant is holding a valid import-export code number 0316916706 issued by the Office of the Director General of Foreign Trade in terms of the provision of Section 7 of the Foreign Trade Development & Regulation Act, 1992. The applicant is covered by the definition of ‘applicant’ as per Section 28E (c) of Customs Act, 1962 is seeking an Advance Ruling under Section 28H of the Customs Act, 1962. The Applicant seeks to claim exemption from payment of Basic Customs Duty (BCD) under Notification No. 25/2023-Cus dated 01.04.2023 against their proposed import of Inshell Walnuts against valid Transferable Duty Free Import Authorisations (DFIAs) issued by the Regional Authority in terms of Paragraph 4.24 and Paragraph 4.26 of Foreign Trade Policy subject to conditions specified therein.
2.2 The applicant submitted that the said Exemption of BCD is granted under Section 25 (1) of Customs Act, 1962 subject to conditions specified which is reproduced as under: –
The Notification No. 25/2023-Cus dated 01.04.2023 , as amended from time to time, exempts materials imported into India against a valid Duty Free Import Authorisation issued by the Regional Authority in terms of paragraphs 4.24 and 4.26 of the Foreign Trade Policy (hereinafter referred to as the said authorisation) from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), subject to the following conditions, namely :-
(i) that the said authorisation is produced before the proper officer of customs at the time of clearance for debit;
(ii) that Standard Input Output Norms (SION) number, description, quantity and Free on Board value of the resultant product exported and the shipping bill number(s) and date(s) are endorsed on the said authorization:
Provided that the said SION does not prescribe the actual user condition;
(iii) that the description and other specifications wherever applicable, value and quantity of materials imported are mentioned in the said authorisation and the value and quantity thereof are within the limits specified in the said authorization :
Provided that in respect of inputs referred in paragraphs 4.12(1) and 4.12(10 of the Foreign Trade Policy, the material permitted to be imported in the said authorisation shall be of the specific name/description or quantity, respectively, as the material used in the export of the resultant product. The exporter shall declare these particulars of materials used in the shipping bill/bill of export :
Provided further that in respect of resultant products requiring inputs specified in paragraph 4.30 of the Foreign Trade Policy, the materials permitted in the said authorisation shall be of the same quality, technical characteristics and specifications as the materials used in the said resultant product. The exporter shall declare these particulars of materials used in the shipping bill or bill of export;
(iv) that the said authorisation shall be transferable subject to such conditions as may be specified
3. The applicant proposed to purchase Transferable DFIAs issued against the following export products as per Standard Input output Norms (SION) to claim duty free entitlements for their proposed import of `Inshell Walnuts” :-
(i) Export of Assorted Confectionary Products as per SION E-1 covered by the description of `Other Confectionery” (Serial No.7 of SION E-1);
(ii) Export of Biscuits as per SION E-5 covered by the description of Dietary Fibre (Sr. No.4(viii)) and Food Flavour/Flavouring Agent; (Sr.No.4(iii) of SION E-5);
(iii) Export of Vegetable Pickles as per SION E-126 covered by the description of Relevant Food Additives (Sr. No. 2 of SION E-126);
(iv) Export of Namkeens/Mixtures/Savouries as per SION E-132 covered by the description of Relevant Flavour —, (Sr. No.4 of SION E-132);
4. The applicant submitted that the Advance Ruling being sought under this application has a bearing on rate of duty. The applicant is exempted from payment of whole of duty of customs for imports made under a Transferable Duty Free Import Authorisation subject to fulfilment of conditions stipulated under Notification No. 25/2023-Cus dated 01.04.2023 . Otherwise, applicant would be required to pay applicable customs duty for import of `Inshell Walnuts’.
5. The applicant relied upon the Order and judgement dated 09.10.2018 of Hon’ble Madras High Court in the case of Maruti Udyog Ltd Vs. Commissioner of Customs Chennai holding entitlement of benefit of exemption notification being related to rate of duty can be decided only by Supreme Court under Section 130(1) of Customs Act, 1962. The applicant referred to the relevant paragraphs 4.24 and Paragraph 4.26 of FTP (2023) as mentioned in Customs Notification No. 25,2023-Ctrs dated 01.04.2023. which is reproduced below:-
4.24 DFIA Scheme
(a) Duty Free Import Authorisation is issued to allow duty. free import of input mightiest impart of oil and catalyst which is consumed/ utilised in the process of production of export product, may also he allowed
(b) Provisions of paragraphs 4.12. 4.18. 4.20. 4.21 and 4.23 of FTP shall be applicable to DFIA also.
(c) import of Tyre under DFIA scheme is not allowed 26 Eligibility
i, Duty Free Import Authorisation shall be issued on post export basis for products for which Standard Input Output Norms have been notified
ii. Merchant Exporter shall be required to mention name and address of supporting manufacturer of the export product on the export document viz. Shipping Bill/ Bill of Export / Tax Invoice for export prescribed under the GST rules.
iii. Application is to be filed with concerned Regional Authority before effecting export under Duty Free Import Authorisation.
iv. No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribes Actual User’ condition or Appendix-4J prescribes pre import condition for such an input.
A. As per Para 4.12 (i) (ii) of FTP (2015-2020), “Wherever SION permits use of either (a) a generic input or (b) alternative input, unless the name of the specific input together with quantity [which has been used in manufacturing the export product] gets indicated / endorsed in the relevant shipping bill and these inputs, so endorsed, within quantity specified and match the description in the relevant bill of entry, the concerned Authorisation will not be redeemed In other words, the name/description of the input used (or to be used) in the Authorisation must match exactly with the name/description endorsed in the shipping bill.
(i) In addition, if in any SION, a single quantity has been indicated against a number of inputs (more than one input), then quantities of such inputs to be permitted for import shall be in proportion to the quantity of these inputs actually used/consumed in production. within overall quantity against such group of inputs. Proportion of these inputs actually used consumed in production of export product shall be clearly indicated in shipping bills.
B. The primary condition of customs notification no.25 of 2023, according to the understanding of the applicant, is that DFIA should be produced before the proper officer of customs at the time of clearance and the Standard input output Norms (SION number, description, quantity and free on board value of the resultant product exported and the shipping bill number(s) and date(s) are endorsed on the said authorisation. Condition (iii) of Notification No.25 of 2023 inter alia stipulates that the description and other specifications, wherever applicable, value and quantity of materials imported are mentioned in the said authorisation and the value and quantity thereof are within the limits specified in the authorisation.
Therefore, in applicant’s understanding of the above provisions of notification makes it clear that the imported goods must be covered by the description, value and quantity as per DFIA issued as per relevant SION.
C. The applicant submitted that the goods sought for import ie., Inshell Walnuts are specific inputs covered by the generic description of ‘Nut and Nut Products’ (SION E-1), ‘Dietary Fibre’ & `Food Flavours (SION E-5); ‘Relevant Food Additives — (Nut and Nut Products (SION E-126) and ‘Relevant Flavours — (Nut & Nut Products) (SION E-132). Therefore, in applicant’s understanding the provisions of Paragraph 4.12 (i) and (ii) of FTP shall not apply in the present case.
D. The Applicant relied upon the judgement and order dated 7th November, 2022 of Hon’ble Tripura High Court in the case of Sri Sibhankar Bhowmik Vs. U01. The Hon’ble High Court under Para 12 of the Order inter alia held that “12. There is also no merit in the contention of the petitioner that although substantive condition (iii) of Notification No. 19 of 2015 concerns mentioning in Transferable DFIA the details “of material imported’, in the first proviso the words “as the materials used” for the purpose of ascertaining the “materials permitted to be imported” would include not only the “material imported’ but also even such material used which is domestically procured”.
E. The Hon’ble High Court in the above mentioned case, rejected the petitioner’s contention that materials permitted to be imported would include not only the material imported but also even such material used which is domestically procured. This would mean that material actually imported need not match the goods inputs used in export product if it is domestically procured for discharging export obligation under DFIA.
F. The Hon’ble Bombay High Court (Nagpur Bench) in the case of Shah Nanji Nagsi Exports Pvt., Ltd, Vs. UOI — 2019(367) ELT 335 (Born) under para 28, inter alia held that “There is no actual user condition so as to restrict the right of petitioner to import maize. So long as the export goods and the import item correspondence to the description given in SION, it cannot be held to be invalid by adding something else which is not in the policy”
G. According to the understanding and interpretation of the Applicant, the exemption under notification no. 25/2023-Cus dated 01.04.2023, is available to goods proposed to be imported i.e., Inshell Walnuts as the description, value and quantity of materials imported are covered by the said authorisation and further they are not specified in paragraph 4.30 (a) of the Foreign Trade Policy. Thus the 141 proviso to condition no. (i) of the notification is not applicable in the present case and the Applicant is entitled to import the above goods.
H. Paragraph 4.30 of FTP is not applicable in the present case with having regard to the fact that none of the inputs sought for import are specified under list of 22 sensitive items of paragraph 4.30 of FTP.
I. Vide CBIC Circular No. 20/2025-Cus dated 24.07.2025, it is clarified that “only in respect of inputs specified in paragraph 4.29 (New Para 4.30) of the Foreign Trade Policy, 2023, a correlation of technical characteristics, quality and specification of the inputs with the export product is required to be established under the DFIA Scheme. Such correlation is not required to be established in case of other inputs.
J. In the present case, Inshell Walnuts covered by product descriptions such as Dietary Fibre/Food Flavours/Nut and Nut Products/Food Additives are not specified inputs under Paragraph 4.29 of FTP. Therefore, no correlation is required to be established for the import of Inshell Walnuts for the technical characteristics, quality and specification, being non sensitive goods.
K. As per Policy Circular No. 72 of 2009, DGFT has clarified that flexibility is given to import alternative inputs either used in the export product or capable of using in export goods.
L. The applicant, in his interpretation of law, submits that there is no condition under Notification No.25 of 2023, that the applicant is required to match the ITC (HS) Number of the goods imported with the ITC (HS) Nos mentioned in the DFIA to claim exemption from payment of customs duty. The applicant relied upon the Final order No. A/30410/2019 dated 25.03.2019 reported 2019 (369) ELT(Tri-Hyd.) in the case of Unibourne Food Ingredients Vs. Commissioner of C.Ex, Hyderabad-II.
“As regards, the mismatching of ITC (HS) Numbers, we find that the Hon’ble Tribunal (Mumbai) in the case of USMS Saffron Co. has held that the ITC (HS) number is not a criteria for extending DFIA benefit under Customs Notification No. 98/2009. We further find that neither SION nor the relevant notification specifies that relevance of ITC (HS) numbers for claiming DFIA benefits. We therefore accept the contentions of Ld Counsel for the appellant in this regard “
M. In view of the above, on the strength of the said DFIA’s issued against export of Confectionary Products/Biscuits/Vegetable Pickles/Nankeens/Mixtures/Savouries etc., the applicant sought to import Inshell Walnut and eligible to claim exemption from Basic Customs Duty under the Custom Notification No. 25/2023-Cus dated 01.04.2023.
N. The applicant submitted that they are not required to correlate the actually used inputs in the export authorities and the exported goods are specific inputs and not appearing as sensitive items under Product with those imported goods once the DFIA is endorsed with transferability by the licensing
O. It is submitted that the Hon’ble Appellate Tribunal (Mumbai) in the case of Frunuts Exim LLP Vs. Commissioner of Customs, Nhavasheva, vide Final Order No. 85184/2026 dated 27.01.2026, under Para 17 of the Order, inter alia , held “that the cap, incorporated by public notice has no validity in law.” The Hon’ble Tribunal followed the judgement in the case of Re. Shah Nanji Nagsi Export Pvt. Ltd., and under Para 20 of the order, inter alia held that “Actual use is redundant in the impugned scheme. The objection raised for denial exemption by the assessing authority and affirmed by the first appellate authority, as it were about actual use by appellant does not have sanction of law; denial of exemption on that ground lacks authority of law
6. QUESTION OF LAW
Based on the facts and circumstances of the case, the applicant is seeking an Advance Ruling to the extent of :-
(i) “Whether the Applicant is entitled to claim Exemption from payment of Basic Customs Duty against Custom Notification No. 25/2023-Cus dated 01.04.2023 for their import of Inshell Walnuts under Transferable DFIA issued against Export of Assorted confectionary goods, Export of Biscuits /Export of Vegetable Pickles and Export of Namkeens/Mixtures/Savouries without showing the actual use, in the export goods?
(ii) “Whether the Applicant is entitled to claim Exemption from payment of Basic Customs Duty against Custom Notification No. 25/2023-Cus dated 01.04.2023 for their import of Inshell Walnuts under Transferable DFIA issued against Export of Assorted confectionary goods, Export of Biscuits /Export of Vegetable Pickles and Export of Namkeens/Mixtures/Savouries without Actual user condition and value cap restrictions irrespective of the input falling under Appendix -4J endorsed in the DFIA”?
(iii) “Whether the Applicant is required to match the ITC (HS) numbers mentioned in the DFIA vis-à-vis the ITC (HS) Number of import goods for clearance against Notification No. 25 of 2023″ under DFIA Scheme”?
7. Port of Import and reply from Jurisdictional Commissionerate
The applicant in their application indicated that they intend to import the subject goods i.e. Walnut (In Shell) at the jurisdiction of office of the Pr. Commissioner of Customs, Mundra, Kutch, Gujrat and The Pr. Commissioner of Customs, NS-I, INCH, Nhava-Sheva. In terms of Provisions of the Section 28-1(1) of the Customs Act, 1962 read with the Sub-regulation No. (7) of the Regulation No. 8 of the Customs Authority for Advance Rulings Regulations, 2021, the applications were forwarded to the office of The Pr. Commissioner of Customs, NS-I, JNCH, Nhava-Sheva on 18.02.2026 as indicated by the applicant in the applications calling upon them to furnish the relevant records with comments, if any, in respect of the said application. The concerned Commissionerate vide their letter dated 18.03.2026 on questions by the applicant submitted as under:
(i) Entitlement to exemption without showing actual use in export goods:
The exemption under Notification No. 25/2023-Cus is conditional upon the imported materials being covered by the description, value, and quantity mentioned in the DFIA. The DFIA itself is issued based on SION, which prescribes inputs required for the manufacture of the exported product. While the applicant argues that actual use by a transferee is not mandated, the foundational principle of the DFIA scheme, as outlined in Para 4.12 of the FTP, requires that the inputs permitted for import must correspond to the specific inputs used in the manufacture of the export product. The licensing authority issues the DFIA based on this premise. Therefore, to allow a transferee to import an item that is prima facie different from the inputs declared in the shipping bills by the original exporter would be contrary to the scheme’s design. The Department’s position is that the benefit cannot be extended where the imported goods do not reasonably correlate to the inputs intended for the exported product, regardless of the transferability of the license.
(ii) Entitlement without Actual User condition and value cap restrictions:
The applicant’s reliance on judgments like Shah Nanji Nagsi Exports to argue against “actual user condition” is noted. However, the condition in the present case is not merely an “actual user condition” (which pertains to the person using the goods), but a condition relating to the description and nature of the goods themselves. The DFIA scheme, read with SION, intends to allow duty-free import of inputs that are capable of being used in the relevant export product line. The import of “Inshell Walnuts” against SION entries meant for inputs like “Food Flavours” or “Dietary Fibre” for biscuits and pickles raises a fundamental question of whether such a primary agricultural product can be considered an input capable of being used in the manufacture of those specific finished goods, in the form it is being imported. Prima facie, it does not appear to be so. The value caps, if any, are a separate issue, but the primary question is the admissibility of the item itself
(iii)Requirement to match ITC (HS) codes:
While the applicant is correct that ITC (HS) codes alone may not be the sole deciding factor, as held in some judicial precedents, they are a significant indicator of the nature of the goods. A mismatch in codes, especially when the description in the DFIA (e.g., Food Flavours under a broad HS code) is sought to be applied to a completely different specific product (Inshell Walnuts under a specific nuts HS code), cannot be ignored. It is a clear indication that the imported goods do not fall within the intended scope of the duty-free entitlement.
8. It was informed that on a prima facie examination of the relevant SION (E-1, E-5, E-126, E132), it was observed that the export products-Assorted Confectionery, Biscuits, Vegetable Pickles, and Namkeens-do not list “Inshell Walnuts” as a direct manufacturing input. The applicant seeks to cover their import under broad, generic descriptions. However, in the context of these SIONs, terms like “Nut and Nut Products,” “Dietary Fibre,” and “Food Flavours” are intended to cover inputs that are integrally used in the manufacturing process of these specific food products. “Inshell Walnuts,” as a primary agricultural commodity, do not prima facie qualify as a “Food Flavour” or “Food Additive” for pickles, nor as a standard “Dietary Fibre” ingredient for biscuits in the form imported. To allow such an import would be to expand the scope of the SION beyond its intended purpose, which is a matter within the exclusive domain of the DGFT.
9. Records of Personal Hearing
9.1 A previous personal hearing was held on 27.04.2026 at 01:00 PM in the office of the CAAR, Mumbai. Ms. Soumiya Ail, Authorised Representative appeared for the hearing on behalf of the applicant. She reiterated the contention filed with the application that the applicant desires to import duty free goods i.e. Inshell Walnuts against the different valid DFIA License against the export of Biscuits, Confectionery item, Pickels and Namkeen mixtures vide DFIA Licenses No. 0311045784 (M/s. Continental Exports), 0311050782 (M/s. Rani International), 3411006427 (M/s. ADF Foods Limited) and 3411006939 (M/s. ADF Foods Limited) against the SION norms E-1, E-5, E-126 and E-132; that the said import Inshell walnut is covered in the above SION norms against the DFIA Licenses; that the said DFIA Licenses are transferable and the applicant is exempted from payment of whole customs duty subject to fulfillment of the condition under Notification 25/2023 dated 01.04.2023. It was asked to file the counter, if any against the departmental comments dated 18.03.2026.
9.2 In another personal hearing dated 25.05.2026 at 03:00 PM, Shri Ashok Nair, Legal Counsel and Ms. Soumiya Ail, Advocate argued that exemption to their import goods is applicable as per notification 25/2023 dt. 01.04.223. They also stated Input-Output correlation in these items is not required as they do not fall under sensitive goods category. They also produced judgement pronounce by Hon’ble High Court of Gujrat, Ahmedabad in identical matter. They gave Rebuttal to jurisdictional Commissioner’s comment on the subject matter.
Nobody appeared from the department for the P.H.
10. Reply to comments by Jurisdictional Commissionerate-
10.1 The applicant vide their reply dated 27.04.2026 to comments filed by Jurisdictional Commissionerate submitted that a DFIA is issued in terms of Paragraph 4.24 and Paragraph 4.26 of the Foreign Trade Policy and as per Standard Input output Norms (SION) notified for the Export product. They reiterated that the proposed import of `Inshell Walnuts’ were fully covered by the description and within value and quantity as specified in the DFIA. Therefore, the contention that to allow a transferee to import of an item that is prima facie different from the inputs declared in the shipping bills by the original exporter is wholly misplaced. It is an undisputed fact that the goods sought for import shall necessarily be covered by the description, within the quantity and CIF value specified in the DFIA.
10.2 CBIC has issued a Board Circular No. 20/2025-Cus dated 24.07.2025 which clarified that only in respect of inputs specified in paragraph 4.29 of the Foreign Trade Policy, 2023, a correlation of technical characteristics, quality and specification of the inputs with the export product is required to be established under the DFIA scheme. Such correlation is not required to be established in case of other inputs. It is submitted that neither Inshell Walnuts nor Dietary fibre, Nut and Nut Products, Food Additives or Food Flavours are part of the specified inputs under Paragraph 4.29 of the FTP. Therefore, the aforementioned circular clarifies that such correlation is not required in case of non -sensitive inputs.
10.3 With regard to entitlement without actual user conditions and value cap restrictions, it is submitted that DFIA scheme is a transferable scheme. The DFIA itself is issued on Transferable .basis. Therefore, it is not an actual user license like in the case of Advance Authorisation (AA) scheme, where only the actual user only is entitled to import duty free inputs for export goods. There is no condition of physical incorporation of inputs in export goods as in the case of Advance Authorisation scheme. The understanding of the Applicant with respect to non applicability of value cap restrictions as specified in the DFIA was in view of Hon’ble CESTAT Order dated 27.01.2026.
10.4 With regard to requirement of ITC (HS) codes, it is reiterated that neither in the foreign trade policy, nor in the hand book of procedures or under relevant custom notification no. 25 of 2023 or SION, that the importer is required to match the ITC (HS) codes to claim benefit of DFIA notification. Therefore, the comments raised on this question is wholly misplaced and liable to be rejected. (Hon’ble CESTAT Order dated 25.03.2019)
The Hon’ble Appellate Tribunal (Mumbai) in the case of VKC Nuts Pvt. Ltd., Vs. Commissioner of Customs, Nhavasheva-I reported (2024) Centax 571 (Tri-Mumbai) has inter alia held that the Inshell Walnuts are fully covered by the description of ‘Dietary Fibre’, Food flavouring etc., against Export of Biscuits (SION E-5).
11. Discussions and Findings
have considered all the materials placed before me in respect of the applicability of the notification issued under Section 25 (1) of the Customs Act, 1962 for import of subject goods. 1 have gone through the submissions made by the applicant during the personal hearing and additional submissions made by the applicant as well as replies received from the concerned jurisdictional, Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework.
11.1 The applicant has sought advance ruling in respect of the following sections:
Q.1 “Whether the Applicant is entitled to claim Exemption from payment of Basic Customs Duty against Custom Notification No. 25/2023-Cus dated 01.04.2023 for their import of Inshell Walnuts under Transferable DFIA issued against Export of Assorted confectionary goods, Export of Biscuits/Export of Vegetable Pick/es and Export of Namkeens/Mixtures/Savouries without showing the actual use, in the export goods?
Q.2 “Whether the Applicant is entitled to claim Exemption from payment of Basic Customs Duty against Custom Notification No. 25/2023-Cus dated 01.04.2023 for their import of Inshell Walnuts under Transferable DFIA issued against Export of Assorted confectionary goods, Export of Biscuits /Export of Vegetable Pickles and Export of Namkeens/Mixtures/Savouries without Actual user condition and value cap restrictions irrespective of the input falling under Appendix -4J endorsed in the DFIA”?
Q.3 “Whether the Applicant is required to match the ITC (HS) numbers mentioned in the DFIA vis-à-vis the ITC (HS) Number of import goods for clearance against Notification No. 25 of 2023″ under DFIA Scheme”
11.2 At the outset, I find that the issue raised in the application is squarely covered under Section 2814 (2) of the Customs Act. 1962 being a matter related to the Applicability of a notification issued under sub-section (1) of section 25, having a bearing on the rate of duty. Before deciding on the issue, let me deliberate on the legal framework prescribed in Customs Act, 1962; Foreign Trade Policy, 2023, Handbook of Procedures and relevant Notification/ Circulars issued thereunder.
11.3 The applicant is seeking exemption from the payment of whole of Customs duty under Notification No. 25/2023-Cus dated 01.04.2023 issued under Sub-Section (1) of Section 25 of the Customs Act, 1962 on the import of various non-sensitive under a valid transferable DFIA Licenses issued against Export of Assorted Confectioneries (SION E-1), Export of Biscuits (SION E-5), Export of Vegetable Pickles (SION E-126) and Export of Namkeens / Mixtures / Savouries (SION E-132). Therefore, before proceeding further, I find it essential to examine the notification No. 25/2023-Cus dated 01.04.2023. The above referred notification exempts materials imported into India against a valid Duty-Free Import Authorisation issued by the Regional Authority in terms of paragraphs 4.24 and 4.26 of the Foreign Trade Policy (hereinafter referred to as the said authorisation) from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), subject to the conditions specified therein. For ease of reference, the conditions prescribed under Notification No. 25/2023-Cus dated 01.04.2023 are mentioned below:
“(i) that the said authorisation is produced before the proper officer of customs at the time, of clearance for debit;
(ii) that Standard Input Output Norins (SION) number, description, quantity and Free on Board value of the resultant product exported and the shipping bill number(s) and date(s) are endorsed on the said authorisation.. Provided that the said SION does not prescribe the actual user condition;
(iii) that the description and other specifications wherever applicable, value and quantity of material’s imported are mentioned in the said authorisation and the value and quantity thereof are within the limits specified in ‘the said authorisation:
Provided that in respect of inputs referred in paragraphs 4.12(0 and 4. 12(i0of the Foreign Trade Policy, the material permitted to be imported in the said authorisation shall be of the .specific name or description or quantity, respectively, as the material used in the export of the resultant product. The exporter shall declare these particulars of materials used in the shipping bill/ bill of export:
Provided further that in respect of resultant products requiring inputs specified in paragraph 4.29 of the Foreign Trade Policy, the materials permitted in the said authorisation shall be of the same quality, technical characteristics and specifications as the materials used in the said resultant-product. The exporter shall declare these particulars of materials used in the shipping bill or bill of export;
(iv) that the said authorisation shall be transferable subject to such conditions as may be specified:
(v) that the imports and exports are undertaken through the seaports, airports or through the inland container depots or through the land customs stations as mentioned in the Table 2 annexed to the Notification No.26/2023-Customs dated 1st April, 2023 or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):
Provided that the Commissioner of Customs may, by special order or a public notice and subject to such conditions as may be specified by him, permit import and export through any other seaport, airport, inland container depot or through a land customs station with in his jurisdiction:
(vi) that the exports as specified in the said authorisation (both in value and quantity terms) were fulfilled within the period specified in paragraph 1.28 of the Foreign Trade Policy by exporting resultant products, manufactured in India, which are specified in the said authorisation:
Provided that in case of an authorisation for intermediate supply, the export obligation shall have been discharged by supplying the resultant products to the exporter in terms of paragraph 4.05(c) (ii) of the Foreign Trade Policy;
(vii) that the importer produces evidence of fulfilment of the export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be;
(viii) that in relation to the said authorisation issued to a merchant exporter, the name and complete postal address of the supporting manufacturer who manufactured the export product is declared in the shipping bills and specified in the said authorization.”
11.4 From the above, it emerges that the first condition for availing the exemption benefit under the subject notification, the applicant must have a valid DFIA license issued by the Regional Authority in terms of paragraphs 4.24 and 4.26 of the Foreign Trade Policy, 2023 and, should produce it before the proper officer of Customs at the time of clearance for debit. The second condition for availing the exemption benefit under the subject notification is that the DMA license should be endorsed with SION (Standard Input Output Norms) Number, Description, Quantity and Free On-Board value of the Resultant product exported and the Shipping Bill Number(s) and date(s); and the description and other specifications (wherever applicable), value and quantity of materials imported are within the limits specified in the said authorisation.
11.5 Further, I observe that the DFIA licenses are issued by the Directorate General of Foreign Trade (DGFT) in terms of Para 4.24 and 4.26 of the Foreign Trade Policy for import of input used in exported products for which SION Norms have been notified. Para 4.24 and 4.26 of the Foreign Trade Policy 2023 are as under:
4.24 DFIA Scheme
(a) Duty Free Import Authorisation is issued to allow duty free import of inputs. In addition, import of oil and catalyst which-is consumed/utilised in the process of production of export product may also be allowed.
(b) Provisions of paragraphs 4.12, 4.18, 4.20, 4.21 and 4.23 of FTP shall be applicable to DFIA also.
(c). Import of Tyre under DFIA scheme is not allowed.
4.26 Eligibility
i. Duty Free Import Authorisation shall be issued on post export basis for products for which Standard Input Output Norms have been notified.
ii. Merchant Exporter shall be required to mention name and address of supporting manufacturer of the export product on the export document viz. Shipping Bill/ Bill of Export/Tax Invoice for export prescribed under the GST rules.
iii. Application is to be filed with concerned Regional Authority before effecting export under Duty Free Import Authorisation:
iv. No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribes Actual User condition or Appendix-4J prescribes pre import condition for such an input.
From the above, I observe that the DFIA license are issued for duty free of import of inputs including intermediates on post export basis for products for which SION Norms have been notified by the Regional Authority. I further observe that no DFIA license can be issued by the authority for the inputs where a pre-import condition or an actual user condition has been notified.
Further. Para 4 29 of the Foreign Trade Policy lists sensitive items and puts a mandate on exporter as well as the regional authority to mention technical characteristics, quality and specification in the Authorization in respect of such sensitive outputs as listed there. Para 4.29 of the FTP, 2023 is reproduced as under:
4.29 Sensitive terms under Duty Free Import Authorisation
(a) In respect of following inputs, exporter shall be required to provide declaration with regard to technical characteristics, quality and specification in Shipping Bill: “Alloy steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings, Solvent. Perfumes / Essential Oil/ Aromatic Chemicals, Surfactants, Relevant Fabrics, Marble, Articles made of Polypropylene, Articles made of Paper and Paper Board, Insecticides, Lead Ingots, Zine Ingots, Citric Acid, Relevant Glass fibre reinforcement (Glass fibre, Chopped / Stranded Mat, Roving Woven Surfacing Mat), Relevant Synthetic Resin (unsaturated Polyester Resin, Epoxy Resin. Vinyl Ester Resin, Hydroxy Ethyl Cellulose), Lining Material”.
(b) While issuing Duty Free Import Authorisation, Regional Authority shall mention technical characteristics, quality and specification in respect of above inputs in the Authorisation.
11.6. Further, provisions of Para 4.12 are also applicable to DFIA license. Para 4.12 (i) states as under:
4.12 Accounting of Input
(i) Wherever SION permits use of either (a) a generic input or (b) alternative input, unless the same of the specific input together with quantity [which has been used in manufacturing the export product] gets indicated/endorsed in the relevant shipping bill and these inputs, so endorsed, within quantity specified and match the description in the relevant bill of entry, the concerned Authorisation will not be redeemed. In other words, the name/description of the input used (or to be used) in the Authorisation must match exactly with the name/description endorsed in the shipping bill.
9.6. Further, since the applicant intends to import subject goods on strength of transferable DFIAs. I find it prudent to examine the Para 4.28 of the ITP, 2023 as well and the same is reproduced as under:
4.28 Validity &Transferability of DFIA
(i) Applicant shall file online application to Regional Authority concerned before starting export under DFIA.
(ii) Export shall be completed within 12 months from the date of online filing of application and generation of file number.
(iii)While doing export/supply, applicant shall indicate file number on the export /supply documents viz. Shipping Bill/ Bill of Export/Tax invoice for supply prescribed under GST rules.
(iv) In terms of Para 4.12 of FTP, Wherever SION permits use of either (a) a generic input or (b) alternative input, the specific input together with quantity [which has been used in manufacturing the export product] should be indicated / endorsed in the relevant Shipping Bill/ Bill of Export. Tax invoice for supply prescribed under GST rules. Only such inputs may be permitted for import in the authorisation in proportion to the quantity of these inputs actually used/consumed in production, within overall quantity against such generic input/alternative input.
(v) In addition, if in any SION, a single quantity has been indicated against a number of inputs (more than one input), then quantities of such inputs, to be permitted for import shall be in proportion to the quantity of these inputs actually used/consumed in production and declared in Shipping Bill/Bill of Export /Tax invoice for supply prescribed under GST rules within overall quantity against such group of inputs. Proportion of these inputs actually used/consumed in production of export product shall be clearly indicated in Shipping Bill / Bill of Export / Tax invoice for supply prescribed under GST rules.
(vi) Separate DFIA shall be issued for each SION.
(vii) Exports under DFIA shall be made from any port listed in Para 4.35 of Handbook of Procedures. However, separate application shall be made for EDI and non-EDI ports. In case export is made from a non-EDI port, separate application shall he made for each non-EDI port.
(viii) Regional Authority shall issue transferable DFIA with a validity of 12 months from the date of issue. No further revalidation shall be granted by Regional Authority.
11.7 From the above, I observe that the exemption under Notification No. 25/2023-Cus is conditional upon strict compliance with the DFIA scheme framework, wherein a valid DFIA license must be produced, duly endorsed with SION details, and imports must conform to the description, quantity and value specified therein, subject to the proviso that no actual user condition is prescribed in SION; further, DFIA licenses arc issued post-export under the Foreign Trade Policy only where SION norms exist and do not prescribe pre-import or actual user conditions, while sensitive inputs under Para 4.29 require additional declaration of technical specifications.
11.8 Further, this position is also affirmed by the CBIC vide Circular NO. 20/2025-CUS. [F. NO. 140605/10/2025-DBK], dated 24.07.2025, wherein it has been clarified that only in respect of inputs specified in paragraph 4.29 of the Foreign Trade Policy, 2023, a correlation of technical characteristics, quality and specification of the inputs with the export product is required to be established under the DFIA Scheme. Such correlation is not required to be established in case of other inputs. The relevant excerpts of the Circular No. 20/2025-CUS dated 24.07.2025 are as under:
“5. The position is thus clear that only in respect of inputs specified in paragraph 4.29 of the Foreign Trade Policy, 2023, a correlation of technical characteristics, quality and specification of the inputs with the export product is required to be established under the DFIA Scheme. Such correlation is not required to be established in case of other inputs.
6. It is, therefore, clarified that: —
(a) Only in case of import of inputs mentioned in paragraphs 4.29 of the FTP, 2023, correlation of technical characteristics, quality and specification of the inputs with the export product is required to be established when imported under the DFIA Scheme.
(b) In case of inputs mentioned in paragraphs 4.12 and 4.28(iii) of the FTP, 2023, only name of the specific input along with the quantity is required to be declared in the shipping bill/bill of export. Declaration of technical characteristics, quality and specification of the inputs used in the manufacture of the export product is not required.”
11.9 Further, I have gone through the application and I find that the question raised by the applicant is general in nature, concerning the permissibility of availing exemption for import of non-sensitive goods under transferable DFIA without adherence to certain conditions. In this context, I do not consider it necessary to undertake a detailed examination of the SION norms applicable to each of the export products covered under the subject DFIAs or the DFIAs themselves at this point, as the issue for determination does not turn on product-specific norms but on the interpretation of the overarching legal provisions and the binding nature of conditions attached to the authorisation.
11.10 Accordingly, after having examined the statutory framework governing the DFIA scheme, including the provisions of the Foreign Trade Policy, relevant SION norms, and the conditions stipulated under Notification No. 25/2023-Cus dated 01.04.2023, it becomes necessary to now consider the specific contentions advanced by the applicant in light of the above legal position. The issue for determination is not merely the eligibility of the goods under the scheme, but whether the applicant is entitled to claim exemption without adhering to certain conditions endorsed in the DFIA licences, particularly with regard to value restrictions and the “actual user” condition. Accordingly, I proceed to examine the submissions of the applicant and the reliance placed on judicial precedents, to determine whether such conditions can be disregarded or whether they continue to remain binding within the framework discussed above.
11.11 Further, DGFT has also published “General Notes for all Export Product Goods”. I have also gone through the same. I find that in the first para of General notes itself it is stated that wherever resultant products and the inputs required have been described in generic terms, the applicants shall ensure that the goods sought for import and actually imported are those, which are used/required in the export product. Para 1 of the General Notes for all Export Products Groups is reproduced as under:
“GENERAL NOTES FOR ALL EXPORT PRODUCTS GROUPS
The norms have been published in this book with a view to facilitate determination of the proportion of various inputs which can be used or are required in the manufacture of different resultant products. In many cases, the resultant products and the inputs required have been described in generic terms. The applicants shall, therefore, ensure that the goods sought for import and actually imported are those, which are used/ required in the export product. The items allowed for import in the license shall be co-related with the description of the export product in the Shipping bill by the exporter to be authenticated by Customs. For example, if the input allowed in the norms is ‘relevant fabrics, only the specific types of fabric i.e. polyester or nylon etc. used in the export product shall be allowed. Similarly, if the norms provide for import of BOPP film against export of self-adhesive tape, only BOPP film required for manufacture of Self Adhesive Tape will be allowed and not those, which are required as packing material.”
11.12 Further, in the Note 4 of the “General notes for all Export Products Group is stated that wherever both quantity and value of inputs is a limiting factor, both needs to be taken into account while importing inputs under that SION Norm. Para 4 of the General Notes for all Export Products Groups is reproduced as under:
“4. Al the inputs allowed for import under advance license/ duty free replenishment certificate are required to be indicated in terms of quantity. Where an input has been permitted in the norms or specifically allowed for import by the ALC in terms of value as a limiting factor only, such items shall be indicated in the license in terms of value only. However, if quantity and value of inputs is a limiting factor, the same shall be applicable.”
11.13 From the SION Norms notified by the DGFT for export of Assorted Confectionery (with Sugar) under E-1, for export of Biscuits under E-5, for export of Vegetables Pickles under E-126 and for export of Namkeens/Mixtures/Savouries under E-132, I observe that in case of certain inputs, values as a percentage of total CIF value of the authorization alongwith quantities of the input allowed against one unit of exported item are mentioned as a limiting factor. Further, from the general notes published by DGFT for export products in general, I gather that inputs allowed for import should actually be used or capable of being used or required in the exported product and they should satisfy the description mentioned in the SION Norms.
11.14 I further observe that the SION Norms are notified by the DGFT and the DFIA licenses are also issued by DGFT only. Therefore, I find that further clarification of SION Norms cannot be issued by this office as the same is issued by the DGFT. However, I find that the exemption benefit under Notification No. 22/2023-Cus dated 01.04.2023 can be availed by the applicant subject to the satisfaction of the conditions mentioned thereunder for the import of specific inputs as mentioned in the DFIA license which are actually used or capable of being used in the manufacturing of the exported product.
11.15 Further, in regards to the question asked by the applicant about matching the I’T’C (HS) numbers, I find that CBIC (erstwhile CBEC) vide Circular No. 46/2007-Cus dated 20.12.2007 issued under F. No. 605/95/2007-DBK have already issued a clarification on the subject matter. Para 3 of the said circular is reproduced as under:
“3. It is, therefore, clarified that except for the items specified in paragraph 4.55.3 of the Handbook of Procedures, Vol. 12004-09, in all other cases a correlation between the inputs under import with those used in the exported product is not required to be established and that clearance under DMA scheme may be allowed if other conditions of the scheme and Customs Notification referred to above are fulfilled.”
11.16 Further, DGFT also vide its Policy Circular No. 50 (RE-08)/2004-09 dated 06.01.2009 have clarified that except for the items (inputs) specified in Paragraph 4.55.3 of HBP V.1, such correlation is not required to be established in other cases unless the SION prescribes for the same. Further, DGFT vide its Policy Circular No. 72 (RE-08)/2004-09 dated 24.03.2009 regarding importability of alternative inputs as per SION under DFIA scheme have clarified that since the objective of SION is to allow duty free import of the inputs which are actually used or are capable of being used in the export product, the exporter has the flexibility to import the alternative input/product mentioned in the SION.
11.17 From the above, I find that the matching of ITC (HS) Numbers mentioned in the DFIA vis-a-vis the ITC (HS) Number of import goods for clearance against Notification No. 25/2023 dated 01.04.2023 is not required as long as the imported products fits the description mentioned in the DFIA license and are actually used or capable of being used in the exported product and other conditions mentioned in the said Notification are satisfied i.e. the imported input is within the quantity and value mentioned in the DFIA license.
11.18 Accordingly, I have gone through the referred order of the Hon’ble Court and Tribunal. On a careful reading of the said judgment and laws which have ruled that the applicant is entitled to avail exemption under Notification No. 25/2023-Cus dated 01.04.2023 with regard to broader description of inputs without strict correlation matching of CTH as long as it finds Inputs/Outputs mention in SION norms provided imports are in strict conformity of DFIA License condition attached thereto.
11.19 Courts and judicial authorities, including the Customs Authority for Advance Rulings (CAAR) (in M/s. Devam Impex CAAR/MUM/ARC/08/25-26 dated 23.04.2025) and the High Court of Gujarat (e.g., The Commissioner of Customs, Kandla Vs. Mts Devam Impex), have ruled that Inshell Walnuts are covered under broader generic input specified in the Standard Input-Output Norms (SION) for items like biscuits and confectionery, Further, in this case, the effect of Public Notice no. 20/2025-26 dated 26.08.2025 about suspension of certain SION norms of food products was also discussed however, the court kept the norms forming the legal basis of the CAAR Rktling in abeyance.
Accordingly, I am in view of that the suspension of norms did not impact the legality of imports initiated under valid license, as the rights to duty-free imports under DFIA were already vested.
11.20 This ruling is in consistence with the previous rulings passed in case of M/s. Unibourne Food Specialties LLP vide Ruling No. CAAR/CUS/ARC/05/2026-27, Mumbai dt. 20.04.2026, M/s. Vitality Nuts and Spices Pvt. Ltd. Vide F.No. CAAR/CUS/ARC/10/2025-26, Mumbai dt. 23.04.2025 and M/s. VMS Global Commodities Private Limited vide CAAR/MUM/ARC/2&3/25-26 dated 16.04.2025, wherein Authority held identical view in the matter of admissibility of benefit of Notification No. 25/2023 dated 01.04.2023 upon compliance with the DFIA scheme framework.
11.21 In light of the above facts, discussions and observations, my views on the questions raised by the applicant are as under:
Q.1 “Whether the Applicant is entitled to claim Exemption from payment of Basic Customs Duty against Custom Notification No. 25/2023-Cus dated 01.04.2023 for their import of Inshell Walnuts under Transferable DFIA issued against Export of Assorted confectionary goods, Export of Biscuits/Export of Vegetable Pickles and Export of Namkeens/Mixtures/Savouries without showing the actual use, in the export goods?
Ans. I answer in the affirmative that where the goods sought to be imported are non-sensitive inputs (not specified under Para 4.29 of the FTP, 2023); fall within the specific description of goods mentioned in the relevant SION norms and endorsed in the DFIA license; are not covered under Appendix 4J of the Handbook of Procedures; and are within the value and quantity limits specified in the authorisation; the exemption benefit under Notification No. 25/2023-Cus dated 01.04.2023 is available to the applicant under transferable DFIA, subject to strict compliance with the conditions prescribed therein read with the Foreign Trade Policy, relevant SION norms and the DFIA license; and any deviation from conditions including violation of actual user condition, wherever applicable, would render the benefit inadmissible.
Q.2 “Whether the Applicant is entitled to claim Exemption from payment of Basic Customs Duty against Custom Notification No. 22/2023-Cus dated 01.04.2023 for their import of Inshell Walnuts under Transferable DFIA issued against Export of Assorted confectionary goods, Export of Biscuits /Export of Vegetable Pickles and Export of Namkeens/Mixtures/Savouries without Actual user condition and value cap restrictions irrespective of the input falling under Appendix -4J endorsed in the DFIA”?
Ans. In this regard, I observe as followed:
(i) The exemption benefit under Notification No. 25/2023-Cus dated 01.04.2023 can be availed by the applicant subject to the satisfaction of the conditions mentioned thereunder for the import of specific inputs as mentioned in the DFIA license which are actually used or capable of being used in the manufacturing of the exported product.
(ii) In case of value cap restrictions, the total value of inputs cleared must strictly fall within the CIF value limits and quantitative ceilings endorsed on the specific DFIA license.
(iii) Vide Public Notice No. 52/2024-2025 dated 27.03.2025 issued by DGFT, the entry of walnut in any form has been deleted. However, if an item actually falls under Appendix-4J of Handbook of Procedures (HBP-2023), it strictly triggers conditions and timeline caps therein.
Q.3 “Whether the Applicant is required to match the ITC (HS) numbers mentioned in the DFIA vis-à-vis the ITC (I-IS) Number of import goods for clearance against Notification No. 25 of 2023″ under DFIA Scheme”
Ans. The matching of ITC (HS) Numbers mentioned in the DFIA vis-à-vis the ITC (HS) Number of import goods for clearance against Notification No. 25/2023 dated 01.04.2023 is not required as long as the imported products fit the description mentioned in the DFIA license and are actually used or capable of being used or required in the exported product and other conditions mentioned in the said Notification are satisfied i.e. the imported input falls within the quantity and value mentioned in the DFIA license.
11.22 As requested by applicant to take necessary steps in order to protect commercially confidential information in terms of Regulation 27 of Advance Ruling Regulation 2021 as amended vide Notification No. 63/2022 NT dated 20.07.2022, which is considered.
11.23 I rule accordingly.
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