Advance Authorisation Scheme – Duty-Free Imports for Exporters — Frequently Asked Questions
Answers to the questions founders most often ask about Advance Authorisation Scheme – Duty-Free Imports for Exporters — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
What is the primary benefit of the Advance Authorisation Scheme?
The scheme allows duty-free import of inputs, fuel, oil, and catalysts that are physically incorporated into or consumed during the production of export products. This reduces production costs for exporters, making their products more competitive.
Who is eligible to apply for Advance Authorisation?
Eligible applicants include manufacturer exporters and merchant exporters who are tied to supporting manufacturers. For pharmaceutical products made through Non-Infringing (NI) processes, only manufacturer exporters can apply.
What duties and taxes are exempted under this scheme?
The scheme exempts Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, Integrated Goods and Services Tax (IGST), and Compensation Cess.
Is there an export obligation under this scheme?
Yes. A minimum value addition of 15% is required, and the export obligation must typically be fulfilled within 18 months from the date of issue of the Authorisation, or as notified by DGFT.
What are the prerequisites for applying?
Applicants must have a valid PAN-based Import Export Code (IEC), a Digital Signature Certificate (DSC) registered on the DGFT portal, and a Registration Cum Membership Certificate (RCMC) from an Export Promotion Council or Commodity Board.
Can I import any input under this scheme?
No. Only inputs that are physically incorporated into the export product, or fuel, oil, and catalysts consumed in the production process, are allowed. The quantity and type are governed by Standard Input-Output Norms (SION) or other approved norms.
How do I apply for Advance Authorisation?
The application is submitted online through the DGFT portal. You need to fill Form ANF 4A with details of the export product, inputs to be imported, and adherence to input-output norms. Ensure prerequisites like IEC, DSC, and RCMC are in place.
Can I apply if my product is not covered under SION?
Yes. If SION does not suit your production process, you can apply for ad-hoc norms through prior fixation by the Norms Committee, self-declaration, or the Self Ratification Scheme.
What is the application deadline for Advance Authorisation Scheme – Duty-Free Imports for Exporters?
Advance Authorisation Scheme – Duty-Free Imports for Exporters runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Does Advance Authorisation Scheme – Duty-Free Imports for Exporters take equity?
No. Advance Authorisation Scheme – Duty-Free Imports for Exporters is subsidy and is non-dilutive — the provider does not take an equity stake in your startup.
Is DPIIT recognition required for Advance Authorisation Scheme – Duty-Free Imports for Exporters?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Advance Authorisation Scheme – Duty-Free Imports for Exporters, though having it can strengthen your application and unlock other benefits.
Who offers Advance Authorisation Scheme – Duty-Free Imports for Exporters?
Advance Authorisation Scheme – Duty-Free Imports for Exporters is offered by Ministry of Commerce and Industry, a government body. It is provided as non-dilutive funding.
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