Advance Authorisation Scheme

Expert guidance for duty-free import of inputs for export production

Understanding the Advance Authorisation Scheme

The Advance Authorisation Scheme is a duty exemption scheme that allows duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed / utilized to obtain export product, may also be allowed.

The scheme enables Indian exporters to compete in international markets by allowing duty-free access to essential inputs and providing a level playing field in global trade.

Why is a Certificate of Origin Important?

  • Tariff Preferences : Enables importers to claim reduced or zero tariff rates under free trade agreements.
  • Customs Clearance : Facilitates faster customs clearance and reduces delays at borders.
  • Trade Compliance : Ensures compliance with import/export regulations and trade agreements.
  • Market Access : Required for entry into certain markets and for specific product categories.

Who Needs a Certificate of Origin?

A Certificate of Origin is typically required for:

  • Exporters shipping goods internationally
  • Manufacturers selling products abroad
  • Trading companies handling international shipments
  • Businesses seeking preferential tariff treatment
  • Companies exporting to countries requiring CoO

Key Components of Advance Authorisation

Standard Input Output Norms (SION)

SION represents the standardized input-output norms defined by the Directorate General of Foreign Trade (DGFT) that specify the quantity of various inputs required to manufacture a unit of export product.

Key Features:
  • SION provides a ready reference for the quantity of inputs allowed for a given export product
  • Covers thousands of export products across various industry sectors
  • Simplifies the application process as no technical assessment is required
  • Regularly updated to reflect technological changes and industry requirements
Benefits:
  • Faster processing of Advance Authorisation applications
  • Predictability in determining eligible input quantities
  • Reduced documentation requirements
  • Transparency in the application process

Benefits of Professional CoO Consultation

Discover how our Certificate of Origin consultation services can benefit your international trade operations.

Duty Free Import

Import inputs without paying customs duty, reducing production costs and improving competitiveness in global markets.

Minimum Export Obligation

Export products manufactured using duty-free imported materials, meeting value addition requirements as specified in the policy.

Validity Period

Authorisations have specific validity periods for import and fulfillment of export obligations, with provisions for extensions in certain cases.

Eligibility
  • Manufacturer exporters or merchant exporters tied to supporting manufacturers
  • Suppliers of goods to export-oriented units (EOUs)
  • Suppliers to projects under international competitive bidding
  • Exporters with a minimum export performance in preceding years
Benefits:
  • Exemption from payment of Basic Customs Duty, Additional Customs Duty, and Anti-dumping Duty
  • Exemption from payment of Integrated Tax and Compensation Cess on imports
  • Improved cash flow and reduced working capital requirements
  • Enhanced global competitiveness through cost reduction

Application Process

Step 1: Documentation Preparation

Gather all required documents including ANF 4A form, manufacturing details, input-output norms, and supporting evidence.

Step 2: Online Application

Submit application through the DGFT online portal with all required attachments and pay the applicable fees.

Step 3 : Application Processing

The DGFT reviews the application, verifies details, and may request additional information if needed.

Step 4: Authorisation Issuance

Upon approval, the Advance Authorisation is issued with details of permitted imports and export obligations.

Step 5: Export Obligation Fulfillment

Complete the required exports within the stipulated timeframe and maintain proper documentation.