Advance Authorization Scheme allows duty free import of inputs, which are physically incorporated in an export product. In addition to any inputs, packaging material, fuel, oil, catalyst which is consumed / utilized in the process of production of export product, is also be allowed.
The quantity of inputs allowed for a given product is based on specific norms defined for that export product, which considers the wastage generated in the manufacturing process. DGFT provides a sector-wise list of Standard Input-Output Norms (SION) under which the exporters may choose to apply. Alternatively, exporters may apply for their own ad-hoc norms in cases where the SION does not suit the exporter.
Advance Authorization covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s).

Advance Authorization is issued for inputs in relation to resultant product, on the following basis:
(i) As per Standard Input Output Norms (SION) notified (available in Hand Book of Procedures);
OR
(ii) On the basis of self declaration as per paragraph 4.07 of Handbook of Procedures.
OR
(iii) Applicant specific prior fixation of norm by the Norms Committee.
OR
(iv) On the basis of Self Ratification Scheme in terms of Para 4.07A of Foreign Trade Policy.