3% Duty Free Import Scheme (DFIS) for Manufacturer-Exporters of Sports Goods

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Dated: 23.04.2026

3% Duty Free Import Scheme (DFIS) for Manufacturer-Exporters of Sports Goods

The 3% Duty Free Import Scheme (DFIS) is a significant initiative by the Central Government, designed to support manufacturer-exporters of sports goods in India. The scheme allows eligible exporters to import essential inputs duty-free, up to 3% of their previous year’s Free on Board (FOB) export value. This article provides a detailed overview of the scheme, its eligibility criteria, application process, and the list of permitted inputs, based on the latest guidelines issued by the Sports Goods & Toys Export Promotion Council (SGEPC).

Scheme Extension and Notification

The DFIS has been extended until 31st March 2029, as per Customs Notification No. 45/2025 dated 24.10.2025. This notification supersedes previous notifications and amendments, ensuring continued support for the sports goods export sector.

Key Features of DFIS

Duty-Free Import Limit: Manufacturer-exporters can import specified essential inputs duty-free, up to 3% of the previous financial year’s FOB export value.
Eligibility: Only exporters registered as manufacturer-exporters of sports goods with SGEPC, holding a valid Registration Cum Membership Certificate (RCMC), are eligible.
Certificates Required: Export Performance Certificate (EPC) and Import Certificate (IC) are mandatory for availing the scheme.

List of Eligible Inputs

The scheme covers 23 essential inputs required for manufacturing sports goods. Examples include:

Nylon gut
PU or nylon grip sheets for hockey sticks
Butyl bladders for inflatable balls
Willow clefts, ash wood, beechwood
Cork bottoms
PVC/Synthetic rubber bladders
Manau cane
Table tennis rubber, bat handles, blades
TPU/PU leather cloth
Extra Tec (cricket bat facing tape)
Resin hardener and release paper
Table tennis glue
Evazote foam
Plywood for carom boards
PVC leather cloth
Latex foam
PEVA/EVA foil
Stitching thread
Printing ink
Pine wood
Foam/EVA foam

Conditions for Availing DFIS

To benefit from the scheme, exporters must:

Be registered with SGEPC as manufacturer-exporters.
Ensure imports do not exceed 3% of the previous year’s FOB export value.
Obtain certificates from SGEPC certifying export performance and import entitlement.

Application Process

Export Performance Certificate (EPC)

Submit an application to SGEPC with details of export bills realized, supported by Bank Realization Certificates and Chartered Accountant verification.
EPC is issued based on actual export realization.
The certificate specifies the duty-free import entitlement.

Import Certificate (IC)

Apply to SGEPC for each import clearance using the prescribed format.
Submit the original EPC and relevant documents.
IC is produced before Customs for duty-free clearance.
Customs endorse the IC with the assessed value, which is then submitted to SGEPC for subsequent imports.
Each import certificate application must be accompanied by a processing fee.

Service Charges

EPC: Rs. 2000 + 18% GST
IC: Rs. 1000 + 18% GST per certificate
Payment can be made via DD, Pay Order, or online transfer to SGEPC’s HDFC Bank account.

Sample Application Formats

Export Performance Certificate (Annex I)

Application on firm letterhead
Declaration of export proceeds and quantity
Chartered Accountant verification
Bank certificate of export realization

Import Certificate (Annex II)

Details of exporter, RCMC, IE Code, EPC number
List of items to be imported with HS codes, quantity, value, and Bill of Entry
Details of country of import and supplier
Record of previous imports
Enclosures: Bill of Entry, EPC, previous IC, application fee

Operative Guidelines

Only registered manufacturer-exporters can apply.
Applications must be complete and accurate, with supporting documents.
SGEPC reserves the right to request additional information.
Import certificates must be submitted to Customs and returned to SGEPC for subsequent imports.

Conclusion

The 3% Duty Free Import Scheme (DFIS) is a valuable opportunity for manufacturer-exporters of sports goods to reduce input costs and enhance competitiveness. By following the prescribed guidelines and maintaining accurate records, exporters can maximize the benefits of this scheme.

Example Implementation:

If you exported sports goods worth Rs. 10,00,000 in the previous year, you can import eligible inputs duty-free up to Rs. 30,000 (3% of Rs. 10,00,000).
Submit your EPC application with bank and CA certificates, then apply for IC for each import consignment, ensuring you stay within the entitlement limit.

This article is based on the official SGEPC circular for DFIS 2025-26 and provides actionable steps for exporters to utilize the scheme effectively.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: Sports Goods & Toys Export Promotion Council, Ministry of Commerce & Industry, Govt. of India

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