Advance Authorisation in Asansol
AA
Ministry of Commerce and Industry (DGFT)
Guidance for businesses in Asansol
Advance Authorisation scheme enables duty free import of inputs for export production, including replenishment of inputs or duty remission. Advance Authorisation covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s).
At a glance
- Scheme Name
- Advance Authorisation (AA)
- Administered By
- DGFT, Ministry of Commerce and Industry
- Benefit
- Duty-free import of inputs for export production
- Minimum Value Addition
- 15%
- Export Obligation Period
- 18 months from date of issue (or as notified by DGFT)
- Application Portal
- www.dgft.gov.in
Benefits
Duty Exemption:
- Input for exports exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, wherever applicable.
GST Exemption:
- Exempted from IGST and Compensation cess.
Eligibility
- Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer.
- Advance Authorisation for pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated in paragraph 4.18 of Handbook of Procedures) shall be issued to manufacturer exporter only.
- Advance Authorisation shall be issued for: Physical export (including export to SEZ); Intermediate supply; and/or Supply of goods to the categories mentioned in paragraph 7.02 (b), (c), (d), (e), (f) and (g) of this FTP; Supply of 'stores' on board of foreign going vessel/aircraft, subject to condition that there is specific Standard Input Output Norms in respect of item supplied.
- Export Obligation: 1. Minimum value addition of 15%. 2. Period for fulfilment of export obligation - 18 months from the date of issue of Authorisation or as notified by DGFT.
Documents required
- IEC Copy.
- Export Item Description.
- ITC HS code of the export product.
- Quantity of Export item.
- FOB value of item to be exported.
- Import Item description.
- ITC HS code of the import product.
- Quantity of Import item.
- CIF value of imported item.
- IGST duty percentage on item to be imported (%).
- Custom duty percentage on item to be imported (%).
- Port of Registration to be mentioned.
- Valid RCMC from an Export Promotion Council suitable to the export product.
- Industrial license.
- CA certificate.
- CA certificate of consumption for last 3 years.
How to apply
- 1
Application Link:
- Visit www.dgft.gov.in and go to Services > Advance Authorisation/DFIA > Apply for Advance Authorisation (ANF 4A).
- 2
Prerequisites:
- Log onto DGFT's website, obtain your PAN-based IEC and link the existing IEC. Register the DSC under My Dashboards > View and Register Digital Signatures Token. (IEC is issued for lifetime, to be updated yearly without any charges.)
- 3
For RCMC:
- Obtain a Registration cum Membership Certificate (RCMC) from the concerned Export Promotion Council (EPC) or Commodity Board (listed in Appendix 2T to the FTP on www.dgft.gov.in). RCMC is a must to claim export benefits, participate in international trade fairs, get restricted licenses, and apply for imposition of anti-dumping duty.
- 4
Apply:
- Then apply for AA under Services > Advance Authorisation/DFIA > Apply for Advance Authorisation (ANF 4A).
About the scheme
Advance Authorisation is a scheme under the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, that enables duty-free import of inputs required for the production of export goods. It is available to manufacturer exporters or merchant exporters tied to supporting manufacturers, subject to export obligations.
Why it matters
- Lowers Export Costs:
- Duty-free import of inputs for export goods.
- Wide Duty Exemption:
- Exempts Basic Customs Duty, IGST, and several other duties.
- Boosts Competitiveness:
- Makes Indian exports more price-competitive.
- Flexible Coverage:
- Applies to physical exports, SEZ supplies, and intermediate supplies.
Focus areas
- Export Promotion:
- Duty-free inputs for export production.
- Duty Remission:
- Exemption from customs and other duties.
- Value Addition:
- Minimum 15% value addition in exports.
- Trade Facilitation:
- Support across physical, SEZ, and intermediate supplies.
Is this scheme right for you?
The Advance Authorisation scheme is a powerful tool for Indian exporters to reduce input costs and boost competitiveness. By allowing duty-free import of inputs—exempt from customs duties, IGST, and more—it helps exporters produce and ship goods more affordably. If you are a manufacturer or merchant exporter meeting the value-addition and export-obligation norms, this scheme can significantly lower your costs.
Frequently asked questions
Who can apply for the Advance Authorisation Scheme?
Manufacturer exporters or merchant exporters tied to supporting manufacturers are eligible to apply under this scheme.
Can I apply for Advance Authorisation if I am a pharmaceutical exporter?
Yes, but Advance Authorisation for pharmaceutical products made through Non-Infringing (NI) process is issued only to manufacturer exporters.
What benefits does this scheme offer for imported inputs?
It allows duty-free import of inputs physically incorporated in the export product, including fuel, oil, and catalysts consumed during production.
Are there any exemptions from taxes and duties under this scheme?
Yes, inputs are exempted from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Safeguard Duty, IGST, and Compensation Cess.
Is there any provision for importing spices under this scheme?
Yes, duty-free import of spices under Chapter 9 is allowed only for crushing, grinding, sterilization, or oil/oleoresin manufacturing, not for cleaning or repacking.
What is the time limit to complete the export obligation?
The export obligation must be fulfilled within 18 months from the date of issue of the Authorisation or as notified by DGFT.
What are SION norms?
SION (Standard Input Output Norms) are sector-wise norms notified by DGFT that define input-output ratios for specific export products.
Is Advance Authorisation applicable for SEZ or intermediate supplies?
Yes, it can be issued for physical exports, including SEZ supplies, intermediate supplies, and other specified categories under FTP para 7.02.
How do I start the application process for Advance Authorisation?
You must visit www.dgft.gov.in and apply under Services > Advance Authorisation / DFIA > Apply for Advance Authorisation (ANF 4A).
What is RCMC and why is it necessary?
RCMC (Registration cum Membership Certificate) from the relevant Export Promotion Council is required to claim export benefits and apply for restricted licenses.
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