The Decision to provide Duty Free Quota Free (DFQF) access for LDCs was an outcome of the WTO Hong Kong Ministerial Meeting, held in December 2005. This decision as given in Annex F of the Hong Kong Ministerial Declaration inter alia requires all developed-country Members, and developing-country Members declaring themselves in a position to do so, to:

• • Provide duty-free and quota-free market access on a lasting basis, for all products originating from all LDCs by 2008 or no later than the start of the implementation period in a manner that ensures stability, security and predictability
  • Members facing difficulties should provide market access for at least 97 per cent of products originating from LDCs defined at the tariff line level, by 2008 or no later than the start of the implementation period. In addition, these Members shall take steps to progressively achieve compliance with the obligations set out above, taking into account the impact on other developing countries at similar levels of development, and, as appropriate, by incrementally building on the initial list of covered products;
  • Developing-country Members are permitted to phase in their commitments and shall enjoy appropriate flexibility in coverage;
  • Preferential rules of origin applicable to imports from LDCs are required to be transparent and simple, and contribute to facilitating market access.

Under this WTO Decision, India became the first developing country to extend this facility to Least Developed Countries (LDCs). India announced the Duty-Free Tariff Preference (DFTP)
Scheme for LDCs in the year 2008. The Scheme was announced to give support to the LDCs in their trade initiatives. Under the Scheme, by 2012, 85% of India’s total tariff lines were
made duty free, 9% tariff lines enjoying a Margin of Preference (MOP) ranging from 10% to 100% and only 6% of total tariff lines retained in the Exclusion List with no duty preferences,
for the exports from LDCs. The market access under the 2008 scheme covered 92.5% lines where LDCs globally exported.

To become a beneficiary under the DFTP Scheme, the prospective beneficiary country is required to provide a letter of intent as well as specimen seals and signatures of the officials authorised to issue the certificate of origin under the DFTP Scheme. The prescribed format of the letter of intent and specimen seals and signatures of the authorised officials, as required under the Scheme have been placed at Annex I and Annex II respectively.

Based on deliberations with beneficiary countries and taking into account the inputs from domestic stakeholders, the DFTP Scheme was expanded by the Department of Commerce in 2014 both in terms of coverage and facilitation of trade. Based on the amendments carried out through Customs tariff Notification No. 8/2014 dated 1st of April, 2014, the DFTP scheme
now provides duty free/preferential market access on about 98.2% of India’s tariff lines (at HS 6-digit level of classification). Only 1.8% of the tariff lines have been retained in the Exclusion List, with no duty concessions. As per the notification of 2021, only 97 lines are under exclusion list and 115 lines are under MOP (Margin of Preference) list. On all other lines, zero duty access has been provided for exports from beneficiary LDCs.

Secondly, with a view to facilitate trade, certain procedural modifications to the Rules of Origin of the DFTP Scheme were made vide customs non-tariff notification 29/2015-
Cus (NT), dated 10th March, 2015. The key changes in the notification were as under:
i.Rules of origin criteria changed to CTSH + 30% (instead of the earlier criteria of CTH+30%);

ii.Allowing the option for calculation of value addition based on either ex-works price of the goods or FOB value only (the 2008 scheme had only the option of FOB value)

iii.Certificate of origin shall be in ISO standard plain A4 size paper in the prescribed format, (instead of blue coloured A4 size paper).

In short, the new expanded and simplified DFTP Scheme provides improved market access to the beneficiary countries as well as to the other eligible LDCs. The new scheme provides market access on 95.5% of the lines on which LDCs have made to exports to India over the last two financial years (i.e., 2015-16 and 2016-17).

Further CBIC has clarified in Circular No. 53/2020- Customs (8 December, 2020) that where value of goods does not have impact on originating status i.e., the originating criteria is wholly
obtained, the certificate of origin issued in terms of duty-free tariff preference scheme for LDCs with third party commercial invoice may be accepted.

As of June 2023; 35 LDCs have been notified as beneficiaries to the scheme*. These countries include the following:

The relevant Indian customs notifications pertaining to the DFTP Scheme are :

DFTP Scheme Notification No. 96/2008
23/2022  Customs	30-Apr– 2022	Seeks to amend the various Customs Tariff  notifications in order to align the HS Codes  of the said notifications with the Finance  Act, 2022, w.e.f. 01.05.2022	View
60/2021– Cus	30-Dec– 2021	Seeks to amend FTA/PTA notification to  align with HSN 2022 w.e.f. 1.1.2022	View
50/2021– Cus	22-Oct– 2021	Seeks to amend notification No. 96/2008-  Customs dated 13.08.2008 to include Sierra  Leone	View
26/2021– Cus	08-Apr– 2021	Seeks to amend customs notifications to  make changes consequential to enactment of  Finance Act, 2021	View
16/2021– Cus	05-Feb– 2021	Seeks to amend notification Nos. 96/2008– Customs, 57/2009-Customs, 101/2007– Customs and 50/2018-Customs  consequential to imposition of Agriculture  Infrastructure and Development Cess  (AIDC)	View
36/2019– Cus	30-Dec– 2019	Seeks to amend Customs Tariff notifications  so as to align them with amended Customs  Tariff.	View
68/2017– Cus	27-Jul– 2017	Seeks to amend Notification No. 96/2008– Customs dated 13th August 2008 to insert S.  No. 35-Republic of Niger and S. No. 36 – Republic of Guinea in the Schedule to the  notification.	View

DFTP Scheme Notification No. 96/2008
02/2017  Cus	27-Jan– 2017	Seek to further amend Notification No.  96/2008-Customs dated 13.08.2008 so as to  prescribe a Margin of Preference of 60% for  all goods falling under sub-heading [0802  80] under the Duty Free Tariff Preference  (DFTP) scheme.	View
67/2016– Cus	31-Dec– 2016	Seeks to amend Notification No.105/1999-  Customs; 75/2005- Customs; 74/2005-  Customs; 28/1995- Customs; 76/2003-  Customs; 21/2012- Customs; 72/2005-  Customs; 24/2005- Customs; 101/2007-  Customs; 12/2012- Customs; 26/2000-  Customs; 73/2005- Customs; 10/2008-  Customs; 96/2008- Customs; 57/2009– Customs; 72/2009- Customs; 24/2005-  Customs; 101/2007- Customs; 151/2009-  Customs; 105/1999- Customs; 85/2004-  Customs; 73/2005- Customs; 10/2008-  Customs	View
46/2016– Cus	23-Aug– 2016	Seeks to further amend Notification No.  96/2008-Customs dated 13.08.2008 so as to  include ‘Republic of Guinea-Bissau’ in the  list of countries eligible for preferential tariff  under the said notification.	View
39/2016– Cus	21-Jun– 2016	Seeks to further amend Notification No.  96/2008-Customs dated 13.08.2008 so as to  include Republic of Togo’ and Republic of  Chad’ in the list of countries eligible for  preferential tariff under the said notification.	View
34/2016– Cus	19-May– 2016	Seeks to further amend notification No.  96/2008-Customs dated 13.08.2008, so as to  carry out the following changes: to omit  ‘Samoa’ and ‘Maldives’ from the list of  countries eligible for preferential tariff under  the said notification; to amend the name of  ‘Republic of East Timor’ as ‘Democratic  Republic of Timor-Leste’.	View
12/2015– Cus	10-Mar– 2015	Seeks to amend notification No. 96/2008– Customs, dated the 13th August, 2008	View
29/2015   Cus (N.T.)	10-Mar– 2015	Customs Tariff (Determination of Origin of  Products under the Duty Free Tariff  Preference Scheme for Least Developed  Countries) Rules, 2015.	View
08/2014– Cus	01-Apr– 2014	Seeks to amend Notification No. 96/2008– Customs, dated 13-08-2008 (DFTP scheme  for LDCs )	View

DFTP Scheme Notification No. 96/2008
33/2013– Cus	19-Jun– 2013	Seeks to amend the notification No.  96/2008-Customs, dated 13th August, 2008  so as to include “Republic of Haiti” in the  list of Least Developed Countries	View
19/2013– Cus	02-Apr– 2013	Seeks to amend the notification No.  96/2008-Customs, dated 13th August, 2008  so as to include “Republic of Yemen” in the  list of Least Developed Countries eligible to  avail of the benefit of duty free tariff  preferences (DFTP) scheme	View
56/2012– Cus	01-Oct– 2012	Seeks to amend notification no. 96/2008– Customs dated 13th August 2008, so as to  provide deeper concessions under DFTP  scheme for Least Developed Countries  (LDCs).	View
113/2011  –  Customs	23-Dec– 2011	Amends Notification No. 96/2008-Customs,  dated the 13th August, 2008	View
90/2011 –  Customs	16-Sep– 2011	Seeks to amend Notification No. 96/2008– Customs dated 13th August 2008, to provide  deeper concessions under DFTP scheme for  Least Developed Countries (LDCs).	View
45/2011 –  Customs	01-Jun– 2011	Seeks to amend notification no. 96/2008– Customs, dated 13.08.2008 so as to include  Islamic republic of Afghanistan” as one of  the beneficiaries to DFTP scheme”	View
121/2010  –  Customs	01-Dec– 2010	Amendments in the notification of the  Government of India, in the Ministry of  Finance (Department of Revenue), No.  96/2008-Customs, dated the 13th August,  2008	View
95/2010 –  Customs	15-Sep– 2010	Amends Notification No. 96/2008-Customs,  dated the 13th August, 2008	View
67/2010 –  Customs	08-Jun– 2010	Amends Notification No. 96/2008-Customs,  dated the 13th August, 2008	View
64/2010 –  Customs	14-May– 2010	Amends Notification No. 96/2008-Customs,  dated the 13th August, 2008	View
63/2010 –  Customs	13-May– 2010	Amends Notification No.96/2008-Customs,  dated the 13th August, 2008	View
86/2009 –  Customs	06-Aug– 2009	Amends Notification No. 96/2008-Customs,  dated the 13th August, 2008	View
59/2009 –  Customs	09-Jun– 2009	Amends Notification No. 96/2008-Customs,  dated the 13th August, 2008	View
45/2009 –  Customs	04-May– 2009	Amends notification No. 96/2008-Customs,  dated the 13th August, 2008	View
24/2009 –	20-Mar–	Amending Notification published vide	View

DFTP Scheme Notification No. 96/2008
Customs	2009	number G.S.R. 590€, dated the 13th August,  2008.
07/2009 –  Customs	19-Jan– 2009	Amends Notification No. 96/2008-Customs,  dated the 13th August, 2008	View
113/2008– Cus	31-Oct– 2008	Uganda, Rwanda and Madagascar –  Exemption to imports therefrom –  Amendment to Notification No. 96/2008– Cus.
99/2008 –  Customs	28-Aug– 2008	Amendments in the notification No.  96/2008-Customs, dated the 13th August,  2008	View
96/2008 –  Customs	13-Aug– 2008	Regarding Duty free tariff preference for  Least Developed Countries	View