{"id":4617,"date":"2025-05-31T12:24:14","date_gmt":"2025-05-31T06:54:14","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=4617"},"modified":"2025-06-01T12:43:44","modified_gmt":"2025-06-01T07:13:44","slug":"what-is-advance-authorisation-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-advance-authorisation-scheme\/","title":{"rendered":"Advance Authorisation Scheme (AAS)"},"content":{"rendered":"<h2>Advance Authorisation Scheme Latest News<\/h2>\n<p>Exporters may no longer be denied duty-free import benefits under the Advance Authorisation (AA) scheme simply because their goods were shipped before the licence was issued.<\/p>\n<h2>About Advance Authorisation Scheme<\/h2>\n<ul>\n<li>Advance Authorisation is issued to allow\u00a0<strong>duty-free import of input<\/strong>,\u00a0<strong>which is physically incorporated in the export product<\/strong>\u00a0(making normal allowance for wastage).<\/li>\n<li>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.\u00a0<\/li>\n<li><strong>An export obligation<\/strong>\u00a0is usually\u00a0<strong>set as a condition\u00a0<\/strong>for issuing Advance Authorization.<\/li>\n<li><strong>In addition to any inputs, packaging material, fuel, oil and catalysts\u00a0<\/strong>which are consumed\/<strong>utilized<\/strong>\u00a0in the process of p<strong>roduction of export products, are also allowed.<\/strong><\/li>\n<li>The\u00a0<strong>quantity of inputs<\/strong>\u00a0allowed for a given product is\u00a0<strong>based on specific norms defined for that export product<\/strong>, which\u00a0<strong>considers the wastage generated\u00a0<\/strong>in the manufacturing process.\u00a0<\/li>\n<li>The Directorate General of Foreign Trade (<strong>DGFT<\/strong>)\u00a0<strong>provides a sector-wise list of Standard Input-Output Norms (SION)\u00a0<\/strong>under\u00a0<strong>which the exporters may choose to apply.<\/strong><\/li>\n<li>Alternatively,\u00a0<strong>exporters may apply for their own ad-hoc norms in cases\u00a0<\/strong>where the\u00a0<strong>SION does not suit\u00a0<\/strong>the exporter.<\/li>\n<li>It is\u00a0<strong>available to either a manufacturer exporter\u00a0<\/strong>directly\u00a0<strong>or a merchant exporter tied with<\/strong>\u00a0a\u00a0<strong>supporting manufacturer.\u00a0<\/strong><\/li>\n<li>The authorization is\u00a0<strong>available for the following:<\/strong>\n<ul>\n<li><strong>Physical exports<\/strong><\/li>\n<li><strong>Intermediate supply<\/strong><\/li>\n<li>Supplies made to specified categories of deemed exports<\/li>\n<li><strong>Supply of \u2018stores\u2019 on board of a foreign-going vessel\/<\/strong>aircraft, provided that there are specific Standard Input Output Norms (SION) in respect of items supplied.<\/li>\n<\/ul>\n<\/li>\n<li>Advance Authorization is\u00a0<strong>valid for 12 months<\/strong>\u00a0from the date of issue of such Authorization.\u00a0<\/li>\n<li><strong>Export Obligation:<\/strong>\n<ul>\n<li><strong>Minimum value addition of 15%<\/strong><\/li>\n<li><strong>Period for fulfilment of export obligation: 18 months<\/strong>\u00a0from the date of issue of authorisation or as notified by DGFT.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Recent Changes:<\/strong>\n<ul>\n<li><strong>Even if goods<\/strong>\u00a0have already\u00a0<strong>been shipped or have arrived in India,\u00a0<\/strong>they can\u00a0<strong>still be cleared under an Advance Authorisation<\/strong>\u00a0granted later by the DGFT,\u00a0<strong>provided\u00a0<\/strong>the\u00a0<strong>importer files the Bill of Entry after the licence date.\u00a0<\/strong><\/li>\n<li>The<strong>\u00a0relevant date for eligibility<\/strong>\u00a0under the AA scheme is the\u00a0<strong>date of filing the Bill of Entry.\u00a0<\/strong>This is a legal Customs document submitted to Indian Customs to get the goods cleared, not the date of shipment from the foreign country.<\/li>\n<li>However, this relaxation\u00a0<strong>won\u2019t apply to restricted goods or products\u00a0<\/strong>that can only be imported through designated government agencies, unless the DGFT gives special permission.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Advance Authorisation Scheme FAQs<\/h2>\n<p><strong>Q1:<\/strong>\u00a0What is the purpose of advance Authorisation scheme?<\/p>\n<p><strong>Ans:<\/strong>\u00a0Advance Authorisation is issued to allow duty free import of input, which is physically incorporated in export product (making normal allowance for wastage)<\/p>\n<p><strong>Q2:<\/strong>\u00a0Which entities can directly apply for Advance Authorisation?<\/p>\n<p><strong>Ans:<\/strong>\u00a0Manufacturer-exporters or merchant exporters tied with a supporting manufacturer<\/p>\n<p><strong>Q3:<\/strong>\u00a0How long is an Advance Authorisation valid from the date of issue?<\/p>\n<p><strong>Ans:<\/strong>\u00a012 months<\/p>\n<p><strong>Source<\/strong>:\u00a0<a href=\"https:\/\/www.business-standard.com\/finance\/news\/govt-to-relax-advance-authorisation-scheme-for-exporters-125052901007_1.html\" target=\"_blank\" rel=\"nofollow noopener\">BS<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advance Authorisation is issued to allow duty-free import of input, which is physically incorporated in the export product (making normal allowance for wastage).<\/p>\n","protected":false},"author":5,"featured_media":48898,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[647,21,22,23],"class_list":{"0":"post-4617","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-advance-authorisation-scheme","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=4617"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4617\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/48898"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=4617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=4617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=4617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}