About Advance Authorization Scheme:
- It allows duty free import of inputs, which are physically incorporated in an export product.
- In addition to any inputs, packaging material, fuel, oil and catalysts which are consumed/utilized in the process of production of export products, are also allowed.
- It is overseen by the Directorate General of Foreign Trade (DGFT).
- 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.
- An export obligation is usually set as a condition for issuing Advance Authorization.
- Advanced Authorization Coverage:
- Manufacturer Exporters: Entities engaged in manufacturing goods for export.
- Merchant Exporters tied to Supporting Manufacturer(s): Traders who do not manufacture themselves but procure goods from a supporting manufacturer for export.
- The Advanced Authorization shall be issued for
- Physical exports
- Intermediate supply
- Supplies made to specified categories of deemed exports
- Supply of ‘stores’ on board of a foreign-going vessel/aircraft, provided that there are specific Standard Input Output Norms (SION) in respect of items supplied.
- Advance Authorization is valid for 12 months from the date of issue of such Authorization.
