Import Facilitation Schemes
Advance Authorisation Scheme
Advisory Services
The Advance Authorisation Scheme is one of the most widely used import facilitation mechanisms under India’s Foreign Trade Policy. It allows exporters to import raw materials and inputs without payment of customs duties, provided that the imported inputs are used in the manufacture of export products.
This scheme is particularly beneficial for manufacturer exporters who rely on imported inputs for production and want to reduce the duty burden associated with imports.
However, the scheme involves specific eligibility conditions, input-output norms, export obligation requirements, and documentation procedures. Many businesses require professional guidance to ensure accurate application filing and compliance with regulatory provisions.
Shangrila Corporate Services Pvt Ltd provides structured advisory to help exporters obtain Advance Authorisations, manage import-export compliance, and successfully fulfil export obligations under the scheme.
Overview
What is Advance Authorisation Scheme?
The Advance Authorisation Scheme allows duty-free import of inputs that are physically incorporated in the export product. This includes raw materials, components, intermediates, and consumables used in manufacturing export goods.
The scheme enables exporters to reduce input costs by eliminating customs duties on imported materials, thereby improving international competitiveness.
Advance Authorisations are issued under the framework of the Foreign Trade Policy and administered by the Directorate General of Foreign Trade.
Suitable For
Who Should Consider Advance Authorisation Advisory?
Advance Authorisation advisory is relevant for businesses involved in manufacturing goods for export using imported inputs.
Typically Suitable For:
Businesses exporting finished goods manufactured using imported inputs
Companies with high import duty costs on production materials
Exporters seeking duty-free import benefits
Key Benefits
Key Benefits of Advance Authorisation Scheme
The Advance Authorisation Scheme provides several advantages for exporters:
01
Duty-free import of raw materials and production inputs
02
Reduction in manufacturing costs for export products
03
Improved price competitiveness in international markets
04
Better cash flow management for exporters
05
Support for manufacturing and export growth
These benefits help exporters optimise production costs while expanding global market access.
Process
How Advance Authorisation Scheme Works
The scheme allows exporters to import inputs without paying customs duties, subject to fulfilment of export obligations.
The process generally involves:
01
Application for Advance Authorisation through the DGFT portal
02
Approval of authorisation specifying permitted inputs and quantities
03
Import of raw materials without payment of customs duties
04
Manufacturing of export products using imported inputs
05
Fulfilment of export obligation within the specified time period
After completing the export obligation, exporters must apply for redemption of the authorisation.
Common Pitfalls
Common Challenges Exporters Face
Exporters often encounter challenges such as:
Difficulty determining eligible input-output norms
Errors in authorisation applications or documentation
Challenges in managing export obligation timelines
Compliance issues during authorisation redemption
Lack of clarity on policy provisions and procedural requirements
Professional advisory helps exporters avoid compliance risks and ensure smooth utilisation of the scheme.
How We Help
Our Approach to Advance Authorisation Advisory
Shangrila Corporate Services Pvt Ltd provides comprehensive support to help exporters utilise Advance Authorisation benefits efficiently while maintaining regulatory compliance.
Our Services Include:
Eligibility Assessment
Evaluation of export products and input requirements.
Application Preparation
Preparation and filing of Advance Authorisation applications.
Input-Output Norm Advisory
Guidance on determining input-output norms for manufacturing processes.
Export Obligation Management
Support in tracking and fulfilling export obligations.
Redemption Support
Assistance with closure and redemption of Advance Authorisations.
Documentation
Documents Required to Get Started
Import Export Code (IEC)
Product details and HS classification
Bill of materials or input-output details
Export orders or past export records
Import requirement details
Reduce Import Costs with Advance Authorisation Benefits
The Advance Authorisation Scheme enables exporters to import essential inputs without paying customs duties, significantly reducing production costs. Connect with our team to:
- Evaluate eligibility for Advance Authorisation
- Prepare and file authorisation applications
- Manage export obligations and compliance requirements
FAQ
Frequently Asked Questions
It is a scheme allowing duty-free import of inputs used in the manufacture of export products.
Manufacturer exporters and merchant exporters supporting manufacturers may apply.
Yes, the inputs must be used in manufacturing products intended for export.
Yes, exporters must fulfil export obligations within the specified period.
Professional guidance helps ensure accurate applications and smooth compliance with scheme conditions.
Related Services
Explore Connected Service Areas
Continue with advisory areas closely connected to this service.
Why SCS
Why Work with
Shangrila Corporate Services Pvt Ltd
Expertise in Foreign Trade Policy and DGFT schemes
Experience assisting exporters with import facilitation schemes
Structured approach to licensing, compliance, and documentation
Practical advisory for exporters managing complex trade regulations
We help businesses reduce import costs and maximise benefits under import facilitation schemes.
Get in Touch
If your organisation imports raw materials for export production, expert advisory can help you utilise Advance Authorisation benefits effectively while maintaining regulatory compliance.