Advance Authorization Scheme

Advance Authorization Scheme Latest News

The government has relaxed the existing 15-day stockholding limit for bulk consumers to 30 days, provided the quantity of stock held beyond 15 days limit shall be sourced exclusively from sugar imported under the Advance Authorisation Scheme (AAS). 

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.

Source: PIB

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