The Advance Authorisation Scheme is a flagship export promotion scheme administered by the Directorate General of Foreign Trade (DGFT), Government of India. It allows duty-free import of inputs that are physically incorporated in the export product, including fuel, oil, and catalysts consumed during manufacturing. This scheme supports Indian exporters by reducing input costs and enhancing global competitiveness.
Key Features
Advance Authorisation can be issued based on:
• Standard Input Output Norms (SION)
• Self-declaration under Para 4.07 of HBP
• Norms Committee fixation under Para 4.06
• Self-Ratification Scheme as per FTP provisions
What Can Be Imported Duty-Free?
• Inputs physically incorporated in the export product (with normal wastage allowance)
• Fuel, oil, and catalysts consumed in production
• Note: Exemptions apply to Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Safeguard Duty, IGST, and Compensation Cess
Advance Authorisation for Spices
Only allowed for value-added activities such as:
• Crushing
• Grinding
• Sterilization
• Manufacture of oils or oleoresins
(Not allowed for simple cleaning, grading, re-packing)
Benefits
• Exemption from payment of major import duties and taxes
• Reduced cost of inputs, making exports competitive
• No upfront payment of duties on eligible imports
Eligibility
• Manufacturer Exporters or Merchant Exporters (tied to supporting manufacturers)
• For pharmaceuticals via Non-Infringing (NI) process, only manufacturer exporters are eligible
Eligible Supplies Covered
• Physical Exports (including SEZ)
• Intermediate Supplies
• Supplies under Para 7.02(b) to (g) of FTP
• Supplies as stores on board foreign vessels/aircraft (with SION norms)
Export Obligation
• Minimum value addition: 15%
• Time limit to fulfill export obligation: 18 months from date of issue (or as per DGFT)
Application Process
Online Application Steps
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Visit: www.dgft.gov.in
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Navigate: Services > Advance Authorisation/DFIA > Apply for Advance Authorisation (ANF 4A)
Pre-requisites:
• PAN-based IEC (Import Export Code)
• Link IEC with DGFT Portal
• Register DSC under Dashboard > View and Register Digital Signature Token
RCMC (Registration-cum-Membership Certificate):
• Obtain from Export Promotion Council/Commodity Board listed in Appendix 2T of FTP
• Mandatory to claim export incentives, restricted licenses, trade fair participation, etc.
Alternate Access via UMANG App:
• Users can apply through the UMANG mobile app as well
Documents Required
• No physical documents required for submission under this scheme
Frequently Asked Questions (FAQs)
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What is Advance Authorisation (AA)?
It is a license that allows duty-free import of inputs used in the manufacture of export goods. -
Who can apply for Advance Authorisation?
Manufacturer exporters and merchant exporters (with supporting manufacturers) can apply. -
What are the key benefits of the AA Scheme?
Exemption from major import duties like Basic Customs Duty, IGST, and Compensation Cess. -
What are the types of supplies eligible under this scheme?
Physical exports, SEZ supplies, intermediate supply, stores for foreign vessels, etc. -
What is the value addition requirement?
A minimum of 15% value addition is mandatory. -
How long do exporters have to meet the export obligation?
The export obligation must be fulfilled within 18 months from the date of authorisation. -
Is RCMC mandatory for applying under this scheme?
Yes, it is required for claiming export-related benefits. -
Can spice exporters apply under AA Scheme?
Yes, but only for value-added processes like oil or oleoresin manufacturing, not simple packing. -
Where can one apply for Advance Authorisation online?
Applications can be submitted on DGFT portal under Services. -
Is digital signature necessary for applying?
Yes, DSC must be registered under the DGFT user dashboard.
Sources And References
• AA Module User Manual V0.2 (DGFT)
• Advance Authorisation FAQs (DGFT)