Advance Authorisation Scheme

About Advance Authorisation Scheme

• The 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, and catalyst that are consumed/utilized in the process of production of export product, are also allowed.
  • The inputs imported are exempt from duties like Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping duty, Safeguard Duty and Transition Product-Specific Safeguard duty, Integrated tax, and Compensation Cess, wherever applicable, subject to certain conditions.
• Implemented by: It is implemented by the Directorate General of Foreign Trade (DGFT).
• Coverage: It covers manufacturer exporters or merchant exporters tied to supporting manufacturers.
• Issued for: It shall be issued for: 
  • Physical export (including export to SEZ)
  • Intermediate supply
  • Supply of goods to the categories specified in the categories of deemed exports.
  • Supply of stores on board a foreign-going vessel/aircraft, subject to the condition that there are specific Standard Input Output Norms in respect of the item supplied. 
• Validity: It is valid for 12 months from the date of issue of such Authorisation.
• About Advance Authorisation Scheme in the jewellery sector:
  • In this sector, the scheme enables exporters to import gold duty-free for manufacturing export products.
  • The government has now imposed a limit of 100 kilograms on gold imports under the scheme. 
  • Advance Authorisation for gold imports will be issued only up to a maximum permissible quantity of 100 kilograms.
  • The DGFT has also made physical inspection of manufacturing facilities mandatory for all first-time applicants to verify their operational status and production capacity.
  • Further, any additional Advance Authorisation for gold imports will be granted only after the exporter fulfils at least 50 per cent of the export obligation under the earlier authorisation.
  • The DGFT has directed the concerned regional authorities to submit monthly reports containing details of all Advance Authorisations issued for gold imports.
  • Note: Earlier, there was no restriction on the quantity of gold that could be imported under the Advance Authorisation Scheme.