1. Home
  2. >>
  3. Advance authorization

Information of Advance authorization

information about Advance authorization ?

Objective of the scheme is to enable duty free import of inputs for export production. The input should be consumed in production of export product. Fuel, oil, catalysts which are used in the process of manufacturing the export product are also eligible to be imported under this scheme.

pu seperater

Benefits of AA

    Exemption from payment of

  • Basic Customs Duty
  • Additional Customs Duty
  • Education Cess
  • Anti-Dumping Duty
  • Countervailing Duty
  • Safeguard Duty
  • Transition Product Specific Safeguard Duty wherever applicable
  • Integrated Tax and Compensation Cess subject to pre-import condition
  • Duty Drawback may be applicable for additional inputs not specified in the norms.

All above mentioned benefits are subject to various conditions based on the inputs being imported and source of inputs and product to be exported.

By - dwarkadhish overseas

Basis for Issuing Advance Authorisation

Advance Authorisation will be issued for inputs in relation to the resultant product based on the following basis

  • As per Standard Input Output Norms (SION)
  • Self-Declaration
  • Applicant Specific Prior Fixation of Norms by Norms Committee
  • Self-Ratification applicable for AEO status holders.

  • 1. As per Standard Input Output Norms (SION)

    Norms are fixed for various export products and the respective inputs needed for manufacturing the export products under 12 categories/ sectors. Advance Authorisations are granted to the exporters based on the norms specified in these categories / sectors.

  • 2. Self-Declaration

    In case of absence of the above norms, an exporter can apply for Advance Authorisation based on self-declaration. The exporter declares the amount of input required for manufacturing the export product depending on the process that he will implement and based on this self-declaration the RA will issue an Advance Authorisation. The exporter is allowed to import input goods without any duty with this authorization. The application will be forwarded to Norms committee for ratification. The norms committee will scrutiny the application and if there are any discrepancies the committee will inform the RA, and the Authorisation is modified based on the recommendations of the Norms Committee. Exporter will either get the benefit of getting additional inputs if declared less, or will have to pay customs duty if the declaration is more than the recommendation of the Norms Committee. Not all inputs are allowed for authorization under this option.

  • 3. Prior Fixation of Norms:

    In case of absence of the norms the exporter has an option of applying for fixation of norms 1st and then apply for Authorisation. The authorization is then issued based on the norms fixed by the Norms Committee.

  • 4. Self-Ratification:

    Only Authorised Economic Operators (AEO) can apply with this option. Where there is no SION/ Ad hoc Norms for an export product or where SION has been notified but exporter intends to use additional inputs other than the inputs notified in SION in the manufacturing process, the AEO can apply for Advance Authorisation through self-ratification. These cases will not be referred to the Norms Committee. Not all inputs are allowed for authorization under this option

By - dwarkadhish overseas

Eligible Applicants for Advance Authorisation

  • Manufacturer exporter or merchant exporter tied to supporting manufacturer
  • Pharmaceutical products manufactured through Non-Infringing process shall be issued to Manufacturer exporter only

By - dwarkadhish overseas

Eligible Exports & Supplies for Advance Authorisation

  • Physical exports (including exports to SEZ)
  • Intermediate Supply
  • Supply of goods to EOU /STP /EHTP /BTP
  • Supply of goods against EPCG
  • Supply of goods to projects financed by Multilateral or Bilateral Agencies / Funds
  • Supply of goods to projects approved by Finance ministry for zero duty from time to time
  • Supply of goods to United Nations or an International Organisation
  • Supply of goods to nuclear power projects

By - dwarkadhish overseas


  • Under Self Declaration: Maximum CIF value will be as under
  • Status Holders: upto 300% of FOB and / or FOR value of preceding year’s exports and / or supplies
  • Others: upto Rs. 10 Cr or 300% of FOB and / or FOR value of preceding year’s exports and / or supplies whichever is higher

By - dwarkadhish overseas

Export Obligation

Exporters are supposed to fulfill “Export Obligation” for the inputs imported through Advance Authorization. Obligation is the form of “Value Addition” achieved on the export product. Obligation period is set at 18 months from the date of issue of Authorization. There are exceptions for supplies to projects in India or abroad and for items falling in category of defense, military store, aerospace, and nuclear energy.

Extension in the export obligation period is also allowed by paying a compensation fee.

By - dwarkadhish overseas
pu seperater

What Our Clients Says

They are very fast in getting work done. They resolved each and every query of ours. We were not aware of the export incentive they approached us and helped us to claim the incentives.

Baljeet Chawla

Trumen Technologies Pvt. Ltd.

Our IGST refunds were pending due to some errors Dwarkadhish approached us and helped getting refund as soon as possible. Even We have not met in personal they are doing all our GST work.


Sidharth foods pvt. Ltd.

Mr. Sai Kiran approached us and told about the incentive benefits we were not aware of and they tried to claim that as soon as possible.

Shyam Sundar

Orient black swan pvt. Ltd.

Got a question?
Let's talk about growing your business. Getting in touch is easy. Give us a call or send us an email with questions or comments. We would love to hear from you, whether you’re interested in working with our team or pursuing a career with us.