DGFT enables Online Facility to Record Info about Transfer of DFIA Scrips to Facilitate Paperless Transactions

DGFT - online facility - transfer of DFIA scrips - facilitate paperless transactions - Taxscan

The Director General of Foreign Trade (DGFT) enabled an online facility to record info about transfer of DFIA scrips with the objective to facilitate paperless transactions and improve ease of doing business.

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.

“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,” the DGFT notified.

It is noteworthy that unless recorded on DGFT website, the new owner (transferee) will not be able to utilize the script. 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.

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