ADVANCE AUTHORISATION SCHEME (Previously known as Licence now changed to Authorization )

An Advance Authorisation (AA) is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed/utilised in the course of their use to obtain the export product is also allowed. Duty free import of mandatory spares upto 10% of the CIF value of the (AA) which are required to be exported/ supplied with the resultant product may also be allowed under Advance Authorisation. Advance Authorisations are issued on the basis of the inputs and export items given under SION. However, they can also be issued on the basis of Adhoc norms or self declared norms as per Para 4.7 of Handbook of Procedures (Vol. I).

Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s): i) For Physical exports ii) For Intermediate supplies; and /or iii) For Deemed Exports. Advance Authorisation is subject to Actual User Condition. i.e. it cannot be transferred or sold. Advance Authorisation and/or materials imported thereunder shall not be transferable even after completion of export obligation.

Advance Authorisations are exempted from payment of following Duties:
  • Basic Customs Duty,
  • Additional Customs duty, Education Cess,
  • Anti dumping duty
  • Safeguard duty, if any.

Export Obligation
The period for fulfillment of the export obligation under Advance Authorisation shall be as 36 months.

Import Validity :
The validity for Imports is 24 Months.

Value Addition:
Minimum Value Addition is 15%.

Documents required for Advanced Authorisation are:
  • I.E. code copy
  • RCMC
  • Digital key
  • Performa Invoice
  • Letterhead 10 sheets
  • S.S.I. or IEM certificate
  • Import Order copy/Re-export order copy
  • Chartered accountant certificate

Kindly Contact Us for further information / Clarification.
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