How to apply for duty-free imports under the Advance Authorisation

How to apply for duty-free imports under the Advance Authorisation Scheme

The Advance Authorization or Advance License scheme is one of the many export promotion schemes offered by the government. Under this scheme, a manufacturer can avail of duty-free imports under specific circumstances.

The Advance Authorization Scheme, also called the Advance License Scheme, is a duty exemption programme offered to manufacturers so that they can import raw materials duty-free in order to produce export-oriented products.

the Directorate General of Foreign Trade (DGFT) specifies the number of inputs allowed for any given product by issuing a sector-wise list of standard input-output norms (SION). It spells out the required quantity of inputs needed for specific products, while also taking into account any wastage that may occur during manufacturing.

In cases wherein the SION may not apply to an exporter or a manufacturing process, the exporter can apply for an advance license under ad hoc norms. Where there are no SION or ad hoc norms, an exporter can apply for this scheme with a self-declaration and self-ratification

This scheme is open to manufacturer-exporters but not limited to them. Merchant exporters linked to supporting manufacturers can also apply. Suppliers to the United Nations and other aid programmes, who act as subcontractors of the projects, can apply for this scheme if their names appear on the contract. The payment here must be received in convertible foreign exchange. In the case of pharma imports, the authorization will be extended only to manufacturer-exporters.

Team Edu-visor