Advance Authorisation Scheme
Consultants in Mumbai | DGFT Experts | India-Wide Services
Duty-Free Imports for Exporters
Do you want to import raw materials and components with “NIL” customs duty for manufacturing export products? The Advance Authorisation Scheme (AA) under the Foreign Trade Policy (FTP 2023) is your gateway to duty-free imports of raw materials, consumables, fuel, oil, and catalysts. Exporters can claim exemptions from Basic Customs Duty (BCD), IGST, Anti-dumping Duty, Safeguard Duty, and CVD. Whether you are a manufacturer exporter or a merchant exporter with a supporting manufacturer, this scheme provides substantial cost savings and boosts global competitiveness.
At Sohamma International, our DGFT consultants in Mumbai with India-wide services provide end-to-end advisory – from licence application, SION/ad-hoc norm fixation, Invalidation/ARO assistance, EODC closure, to representation before DGFT Committees.
FAQs on Advance Authorisation Scheme
- What is Advance Authorisation under DGFT? It is a scheme that permits exporters to import raw materials duty-free, provided they use them in manufacturing export products. Exporters must meet export obligations with minimum 15% value addition.
- Who can apply for Advance Authorisation? Both manufacturer exporters and merchant exporters with supporting manufacturers can apply through the DGFT portal.
- How to apply for EODC closure under Advance Authorisation? By filing an online application on the DGFT portal with supporting documents like Shipping Bills, BRCs, invoices, and compliance statements. DGFT then issues an Export Obligation Discharge Certificate (EODC) confirming licence closure.
- What happens if export obligation is not fulfilled? Unfulfilled EO requires exporters to repay the saved duty with interest. In genuine hardship cases, they can seek relief before the Policy Relaxation Committee (PRC), DGFT Delhi.
- What is SION in Advance Authorisation? SION (Standard Input Output Norms) define the duty-free input requirements for a given export product. If unavailable or outdated, exporters can apply for ad-hoc norm fixation, self-declaration, or self-ratification.
- Can Advance Authorisation be used for domestic sourcing? Yes ✅. Inputs can be sourced domestically without payment of duty/GST through Invalidation Letters or Advance Release Orders (ARO).
- ❌ Complexity in calculating export obligation and value addition.
- ❌ Non-availability or outdated SION norms.
- ❌ Delays in EODC closure, leading to penalties.
- ❌ Audit queries or Show Cause Notices from DGFT/Customs.
- ❌ Confusion around Invalidation/ARO for domestic sourcing.
- ❌ Heavy compliance and documentation burden.
- ✅ Smooth Advance Authorisation applications and amendments.
- ✅ Support for SION/ad-hoc norm fixation & ratification.
- ✅ Timely EODC closure & export obligation management.
- ✅ Representation before DGFT Committees (Norms, PRC, EPCG).
- ✅ Resolution of default cases, audits, and SCN responses.
