Advance Authorisation lets exporters import inputs that are physically used in their export products, plus fuel, packaging and catalysts consumed in production, without paying customs duty. Quantities are fixed using the Standard Input Output Norms (SION) or the exporter's own approved norms. The exporter must complete the export obligation, generally within 18 months of the authorisation, and achieve the minimum value addition.
How Advance Authorisation works
You apply for an authorisation listing the export product and the inputs needed to make it. DGFT issues it with the permitted input quantities and export obligation. You then import those inputs duty-free and export the finished goods within the obligation period.
Who can apply?
- Manufacturer exporters
- Merchant exporters tied to a supporting manufacturer
- Exporters who can use the inputs themselves, as authorisations generally carry an actual user condition
Key rules
- Input quantities follow SION, or norms fixed by the Norms Committee where SION does not exist
- The export obligation is generally to be completed within 18 months from the date of issue
- Minimum value addition on exports must be met
- Imported inputs must be used to make the export product, and records must show this
How to apply
- Work out inputs and normsList the export product, inputs and quantities using SION.
- Apply on the DGFT portalFile with IEC, RCMC and a CA or engineer certificate where required.
- Get the authorisationDGFT issues it with input quantities, value and export obligation.
- Register at the port and importRegister the authorisation with customs and import inputs duty-free.
- Export and redeemComplete exports within the period and apply for redemption of the authorisation.
Frequently asked questions
What is the export obligation period for Advance Authorisation?
Generally 18 months from the date the authorisation is issued.
What is SION?
Standard Input Output Norms, which set how much of each input is allowed per unit of the export product.
Can I claim Duty Drawback on inputs imported under Advance Authorisation?
No. Inputs imported duty-free under Advance Authorisation do not get drawback of customs duty. See our Duty Drawback guide.
Can merchant exporters use Advance Authorisation?
Yes, when the authorisation names a supporting manufacturer who makes the export product.
How BuyGenix Solutions helps
We check whether Advance Authorisation or Duty Drawback gives you more, prepare the application with the right norms, and track exports to redemption. BuyGenix members can also see live buyer requirements from importers in India and abroad.
Need Help Getting This Done?
BuyGenix Solutions handles advance authorisation scheme and every related registration your business needs, from documentation to filing.
Get Registration Help →Looking for buyers for your products?
See live requirements from importers and bulk buyers in India and abroad: what they want, how much, and where. Contact them directly with a BuyGenix membership.
