Volvo can Import Internal Combustion Engines In Absence of Restriction in DFIA License: CESTAT

Volvo has been permitted to import internal combustion engines under the Duty-Free Import Authorization (DFIA) license, as there are no specific restrictions on such imports under the DFIA scheme. The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled that the absence of an explicit prohibition in the DFIA license allowed Volvo to proceed with the importation. This decision clarifies that the DFIA license, which offers duty exemptions on imported goods for specific manufacturing purposes, can cover the import of engines for manufacturing vehicles. This ruling supports Volvo's expansion strategy in India while ensuring compliance with trade regulations.