Advance Authorisation Scheme – Easy and Expert Consultant
The Advance Authorisation Scheme (AAS) is one of the most beneficial export promotion schemes administered by the Directorate General of Foreign Trade (DGFT) under the Foreign Trade Policy of India. This scheme allows eligible exporters to import raw materials, components, and inputs without paying customs duties, provided they are used in the manufacturing of export products.
Advance Authorisation 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 Authorisation covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s).
✅ Objective of the Scheme
The primary goal of the Advance Authorisation Scheme is to make Indian exports competitive in the global market by reducing input costs. It enables exporters to:
Import essential inputs without payment of duties.
Reduce the overall cost of production.
Improve product pricing in international markets.
Promote high-quality exports.
📑 Types of Advance Authorisation
Advance Authorisation for Physical Exports
Advance Authorisation for Intermediate Supplies
Advance Authorisation for Deemed Exports
Advance Authorisation for Annual Requirement
📜 Validity of Authorisation
Import validity: 12 months from the date of issue.
Revalidation may be granted under specific conditions.
EO period: 18 months (extendable as per DGFT guidelines).
📈 Export Obligation (EO)
Export Obligation is the minimum quantity or value of exports that the exporter must fulfill using the inputs imported duty-free.
EO Period: 18 months from the date of issue of authorisation.
For deemed exports, EO is fulfilled upon supply of goods to eligible categories.
Extension of EO is possible on valid grounds.
🧾 Important Documents Required
IEC Certificate
- RCMC
- SSI
Product description, hs code and technical specs for Import and Export Both
Chartered Engineer Certificate (for no-norms cases)
Self-declaration (for SION-based applications)
Manufacturing process flow chart
Proforma Invoice / Contract Copy
GST Registration and Factory Address Proof
Need help with Advance License ?
Bhupendra Purohit
Proprietor – Dhruva Services
Call/WhatsApp: +91-7405910069
Email: dhruvaserv@gmail.com