Duty Free Replenishment Certificate (DFRC) 4.31A

DFRC shall also be available for supplies mentioned in Chapter 8 of the Policy except for supplies made to DFRC holders. Such DFRC shall be issued with a single port of registration mentioned in paragraph 4.19 of the Handbook (Vol.1) as per option of the applicant.

The CIF value of DFRC shall be arrived at after discounting 20% from the FOR value of supply.

The FOR shall be calculated on the basis of the document mentioned in sub-paragraph ii) below. The application shall be accompanied by the following:-

i) A copy of the Invoice duly signed by the unit receiving the material and their jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply. However in case of supply of items which are non excisable or supply of excisable items to a unit producing non excisable product(s), a Project Authority Certificate (PAC) certifying quantity, value and date of supply would be acceptable in lieu of excise certification.

Notwithstanding the above, in respect of supplies to EOU/EHTP/ STP/ BTP, the supplier has the option to furnish a copy of ARE-3 duly signed by the jurisdictional excise authorities/Bond officer certifying the item of supply, its quantity, value and date of such supply shall be furnished.

ii) Payment certificate from the project authority in the form given in Appendix-22C. In the case of Intermediate Supplies/ deemed exports, supplies to the EOUs/ EHTPs/STPs/ BTPs, documentary evidence from the bank substantiating the realisation of proceeds from the Licence holder or EOUs/ EHTPs/ STPs/ BTPs, as the case may be, through the normal banking channel, shall be furnished in the form given at Appendix- 22B.

However realisation of export proceeds shall not be insisted upon if the shipments are made against confirmed irrevocable inland letter of credit or inland bill of exchange is unconditionally Avalised/ Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank and the same is certified by the bank in column 5/6/7 of Appendix-22B. Exports made against the Government of India/EXIM Bank Line of Credit and exports made under Deferred Payment/Suppliers Line of Credit Contract backed by ECGC Cover would also be entitled for the benefit under DFRC Scheme.