Application for Advance Authorisation

What is Advance Authorisation?

The Advance Authorisation (AA) Scheme is one of the most widely used export promotion schemes under India's Foreign Trade Policy. It allows duty-free import of inputs — including packaging material, fuel, oil, and catalysts — that are physically incorporated in the final export product. The scheme ensures that Indian manufacturers can source inputs at international prices (without paying import duties), making their exports globally competitive.

Basis of Issue

Advance Authorisation is issued for inputs in relation to the resultant export product on one of the following bases:

  1. Standard Input-Output Norms (SION): SION is a sector-wise list of standardised input-output relationships. If SION exists for your export product, the application is straightforward.
  2. Self-Declaration: For products where SION exists, exporters can also apply on the basis of their own declaration as per Para 4.07 of the Handbook of Procedures.
  3. Applicant-Specific Prior Fixation: When SION does not exist for your export product, the Norms Committee at DGFT Headquarters fixes norms on an applicant-specific basis.
  4. Self-Ratification Scheme: AEO-certified exporters can opt for the Self-Ratification Scheme under Para 4.07A of FTP, eliminating the need for Norms Committee approval.

Our Advance Authorisation Services

  1. Analysis of SION applicability for your export product
  2. Preparation and filing of Advance Authorisation application on DGFT portal
  3. Coordination for ad-hoc norms fixation where SION does not exist
  4. Registration of Advance Authorisation at Customs for duty-free imports
  5. Monitoring of import and export obligations
  6. Filing of redemption application with EODC, BRC, and shipping bills
  7. Representation before DGFT for queries, objections, and amendments

Frequently Asked Questions – Advance Authorisation

Q: What is the difference between Advance Authorisation and DFIA?

Advance Authorisation is pre-export (import duty-free inputs before export). DFIA (Duty Free Import Authorisation) is post-export — you can only apply after completing a minimum 50% export obligation. DFIA scrips are also transferable, unlike Advance Authorisation.

Q: Can merchant exporters apply for Advance Authorisation?

Yes. Merchant exporters can apply for Advance Authorisation but they must tie the authorization to a supporting manufacturer. The manufacturer's name and address must be endorsed on the Advance Authorisation at the time of application.

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Frequently Asked Questions

What is an IEC (Importer Exporter Code) and why is it mandatory in India?

An Importer Exporter Code (IEC) is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India. It is the primary business identification number required for any person or business engaged in import or export of goods and services.

IEC is mandatory because no import or export can be made without it (unless specifically exempted under the Foreign Trade Policy). It is required for Customs clearance, DGFT scheme applications, and receiving or making foreign trade payments through banks.

What are the main documents required for import-export in India?

Key documents for import-export operations in India include:

  • Shipping Bill (for exports) or Bill of Entry (for imports) — filed with Customs for clearance.
  • Commercial Invoice cum Packing List — details of goods, quantity, value, and packaging.
  • Bill of Lading / Air Waybill — transport document issued by the carrier.
  • Certificate of Origin (COO) — certifies the country of origin, needed for FTA benefits and some import requirements.
  • IEC Code — the importer/exporter identification number.
  • GST Invoice / LUT — for GST compliance on exports.
  • FSSAI Certificate — for food and agricultural imports.
  • BIS Certificate / NOC — for products under mandatory BIS certification.

What does DGFT do and why is it important for importers and exporters?

The Directorate General of Foreign Trade (DGFT) is the apex government body under the Ministry of Commerce and Industry responsible for formulating and implementing India's Foreign Trade Policy (FTP). Its key roles include:

  • Issuing and managing Importer Exporter Codes (IEC)
  • Administering export incentive schemes: Advance Authorisation, EPCG, RoDTEP, RoSCTL, SEIS
  • Granting export licences for restricted and SCOMET items
  • Issuing import licences for restricted items
  • Recognising Star Export Houses (status holders)
  • Fixing Standard Input Output Norms (SION)

Every Indian exporter and importer must interact with DGFT at some point — whether for obtaining an IEC, applying for export incentives, or seeking licences for restricted goods.

How can I find out if my product requires a special import licence in India?

India's import policy is classified under the ITC(HS) Classification of Export and Import Items published by DGFT. Every item has an import policy designation:

  • Free: Can be imported without any licence.
  • Restricted: Requires a specific import licence from DGFT before import.
  • Prohibited: Cannot be imported under any circumstances (e.g., beef in some categories).
  • Canalised: Can only be imported by government-designated agencies.

You can check the policy on the DGFT website by your ITC(HS) code, or contact Samarth EXIM for a free preliminary import policy check for your specific product.

What is the difference between Advance Authorisation and EPCG scheme?

Both are export promotion schemes under India's Foreign Trade Policy, but they serve different purposes:

  • Advance Authorisation (AA): Allows duty-free import of raw materials and inputs that are physically used in manufacturing export goods. The export obligation is the value of goods exported. Applicable before production.
  • EPCG (Export Promotion Capital Goods): Allows duty-free import of capital goods (machinery, equipment, tools) used in production of export goods. The export obligation is 6 times the duty saved, over 6 years.

They can be used together — EPCG for capital goods and Advance Authorisation for input materials — giving double duty savings on both machinery and raw materials.

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