Advance Authorisation (Duty-Free Import of Inputs for Export)
Advance Authorisation under Chapter 4 of FTP 2023 allows duty-free import of inputs physically incorporated in your export product, based on SION or ad-hoc norms. Corpseed prepares and files the DGFT application, extensions and the closure (EODC).
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Get Support AnytimeWhat is Advance Authorisation?
Advance Authorisation (AA) is a duty exemption scheme in Chapter 4 of the Foreign Trade Policy (FTP) 2023. It allows duty-free import of inputs that are physically incorporated in the export product, making normal allowance for wastage. Fuel, oil and catalyst consumed or used in producing the export product may also be allowed (FTP para 4.03(a)).
Duties exempted (FTP para 4.14)
Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, wherever applicable. Imports under AA for physical and deemed exports are also exempt from Integrated Tax and Compensation Cess. Imports against supplies under FTP para 7.02 (c) and (f) are not exempt from anti-dumping, countervailing and safeguard duties.
Exports and supplies covered (FTP para 4.05(c))
- Physical exports, including exports to SEZ
- Intermediate supplies
- Supplies to the categories in FTP para 7.02 (b) to (g)
- Supply of stores on board foreign-going vessels or aircraft, where a specific SION exists for the item
An Advance Authorisation for Annual Requirement is also available for items with notified SION, to exporters with export performance in at least the two preceding financial years, up to 300% of the previous year's FOB value of physical exports and/or FOR value of deemed exports, or Rs 1 crore, whichever is higher (FTP para 4.07).
Who can get an Advance Authorisation?
- A manufacturer exporter, or a merchant exporter tied to a supporting manufacturer (FTP para 4.05(a)). For pharmaceutical products made through a non-infringing process, only manufacturer exporters (para 4.05(b)).
- You need an Importer-Exporter Code (IEC) and, as for any authorisation under the FTP, an RCMC (FTP para 2.57).
- The application is filed online, digitally signed, by the IEC holder to the jurisdictional Regional Authority. The applicant can be the registered office, head office, a branch office or a manufacturing unit; a branch or unit must appear in the electronic RCMC and the IEC (HBP paras 4.02 and 4.03).
Minimum value addition
Value addition = (A minus B) divided by B, multiplied by 100, where A is the FOB value of exports realised (or FOR value of supply received) and B is the CIF value of inputs covered by the authorisation plus the value of any other input on which drawback is claimed (FTP para 4.08). The minimum is 15%, with lower limits for products in Appendix 4D, 50% for tea and 25% for spices (FTP para 4.09).
Some inputs cannot be imported on a self-declaration basis, for example edible oils and oilseeds, cereals, honey, and items with basic customs duty above 30% (FTP para 4.11). Prohibited items cannot be imported or exported under AA unless specifically notified (FTP para 4.18).
SION and ad-hoc norms
The quantity of duty-free inputs is fixed by input-output norms. An AA is issued on one of these bases (FTP para 4.03(b)):
- Standard Input Output Norms (SION) notified in the Handbook of Procedures;
- Self-declaration under HBP para 4.07, where there is no SION or valid ad-hoc norm, or where you use an additional input. Wastage claimed is subject to the Norms Committee's decision, and you give an undertaking to abide by it. If the norms are revised or the application is rejected, you pay duty and interest within 30 days of the decision being hosted on the DGFT website (HBP 4.07);
- Prior fixation of norms by the Norms Committee at DGFT headquarters on an application in ANF 4B (HBP 4.06); or
- the Self-Ratification Scheme for eligible exporters such as AEO certificate holders, on a Chartered Engineer's certificate (FTP para 4.06).
How long ad-hoc norms remain usable
- An ad-hoc norm fixed on an exporter's application is valid for that one authorisation. The Norms Committee may specify an extended validity of not more than two years from fixation for further authorisations (HBP 4.06(iii)).
- Norms ratified by any Norms Committee on or after 1 April 2015 for authorisations under HBP para 4.07 are valid up to 31 March 2028, and any applicant may use them on a repeat basis during that period. This does not apply to Appendix 4P items or where the Norms Committee has said the norm is not for other applicants (HBP 4.12(vi), as amended by Public Notice 07/2026-27 dated 5 May 2026).
Value limit for self-declared authorisations (HBP 4.12)
Until norms are fixed, the total CIF value of authorisations under HBP para 4.07 is limited to 300% of the previous year's FOB and/or FOR value for status holders; for others, 300% of FOB or Rs 10 crore and/or FOR value of the previous year's exports and supplies, whichever is higher.
Validity, export obligation period and actual user condition
| Item | Rule | Source |
|---|---|---|
| Validity for import | 12 months from the date of issue. For supplies under FTP Chapter 7, the contracted project period or 12 months, whichever is later | HBP 4.39(a), (b) |
| Revalidation | Only one revalidation of 12 months from expiry (for authorisations not covered by HBP 4.39(b)) | HBP 4.39(c) |
| Export obligation period | 18 months from the date of issue | HBP 4.40(a) |
| Projects under Chapter 7 or abroad | Contracted project period or 18 months, whichever is more | HBP 4.40(b) |
| Defence, military store, aerospace and nuclear energy items | 24 months or the contracted period of the export order, whichever is more | HBP 4.40(c) |
| Extension | Up to two extensions of 6 months each on payment of composition fee; never beyond 12 months from expiry of the EO period | HBP 4.40(e), (f) |
| Export ban | EO period extends automatically for the duration of a ban imposed after issue, without composition fee | HBP 4.40(g) |
Actual user condition (FTP para 4.16)
- The authorisation and the material imported under it are subject to the actual user condition and cannot be transferred, even after the export obligation is completed. Once the EO is complete, you may dispose of products made from the duty-free inputs.
- If input tax credit was availed on the exported goods, the goods imported under the AA can be used only to make dutiable goods, even after the EO is complete; a Chartered Accountant's certificate is filed with the EODC application.
- Waste or scrap from manufacturing may be disposed of on payment of duty, even before the EO is fulfilled.
Shipping bills: the name and quantity of each input used must be shown in the shipping bill and must match the authorisation and bill of entry; otherwise the authorisation will not be redeemed for that input (FTP para 4.12).
Documents for an Advance Authorisation
The application is filed online in ANF 4A using a digital signature. The same form is used for SION, ad-hoc norms and self-declaration cases (HBP 4.04). Uploads, as listed in ANF 4A:
- Proof of payment of the application fee as per Appendix 2K
- For Annual Requirement: statement of exports of the preceding financial year certified by a Chartered Accountant, Cost Accountant or Company Secretary in the Appendix 5B format, and a self-certified copy of the manufacturing licence of the applicant or supporting manufacturer
- Invalidation letters, where you supply to another Advance Authorisation holder
- For deemed exports: the Project Authority Certificate, where required
- For import of fuel: the permission for the captive power plant and the letter confirming its commissioning
- For self-declaration under HBP 4.07: information as per Appendix 4E, and production and consumption data of the preceding three financial years certified by a Chartered Accountant, Cost Accountant or the jurisdictional excise authority
Your IEC profile and RCMC must be current.
How to get and close an Advance Authorisation
- Identify the norm for your export product: SION, an existing ad-hoc norm, or self-declaration.
- If you want norms fixed before applying, file ANF 4B with the Norms Committee at DGFT headquarters.
- On the DGFT portal, apply in ANF 4A to the jurisdictional Regional Authority, upload documents, pay the fee and sign digitally.
- The Regional Authority issues the AA listing the inputs and quantities, CIF value, FOB/FOR value of exports, import validity and export obligation period (HBP 4.26).
- Execute the bank guarantee or legal undertaking (HBP 4.34) and register the authorisation at the port of registration named in it (HBP 4.35).
- Import the inputs, or procure them in India against an Advance Release Order or Invalidation Letter (FTP para 4.20).
- Export, showing the inputs used in the shipping bills.
- Within six months of expiry of the EO period, apply online by linking the shipping bills to the authorisation (HBP 4.43(b)), using ANF 4F for EODC / redemption (HBP 4.47(b)).
Fees, extensions and EODC
Application fee (Appendix 2K)
| Applicant | CIF value of the authorisation | Fee |
|---|---|---|
| MSME | Up to Rs 1 crore | Rs 100 |
| MSME | Above Rs 1 crore | Rs 5,000 |
| Non-MSME | Any | Rs 1 per Rs 1,000 (or part) of the CIF value, minimum Rs 500 and maximum Rs 1,00,000 |
Appendix 2K also sets Rs 500 for a first revalidation and Rs 1,000 for a second revalidation of an authorisation.
Composition fee for EO period extension (HBP 4.40)
| Extension | CIF up to Rs 2 crore | Above Rs 2 crore to Rs 10 crore | Above Rs 10 crore |
|---|---|---|---|
| First extension (up to 6 months) | Rs 5,000 | Rs 10,000 | Rs 15,000 |
| Second extension (6 months) | Rs 10,000 | Rs 20,000 | Rs 30,000 |
For each extension you give a self-declaration that unutilised imported or domestically procured inputs are available with you.
EODC
After completing exports and imports, apply online in ANF 4F with shipping bills and e-BRC or export realisation data. If the export obligation is fulfilled, the Regional Authority issues the EODC / Redemption Certificate and sends a copy to Customs at the port of registration (HBP 4.47(b)). If you export before importing, you may seek a Bond Waiver Certificate (HBP 4.47(a)). If you do not complete the EO or submit the documents, the Regional Authority enforces the authorisation conditions and undertaking and may take penal action (HBP 4.43(f)). See our EODC service.
Processing time depends on the Regional Authority's scrutiny.
Why Corpseed for Advance Authorisation?
Corpseed matches your export product with the right SION or ad-hoc norm, checks value addition and inputs, and prepares and files the ANF 4A application, norms fixation requests, extensions and the ANF 4F closure on the DGFT portal. The DGFT Regional Authority and Norms Committee take the decisions.
Connect With Corpseed
Connect with the Corpseed team to discuss your requirements at IVR: 7558640644 or hello@corpseed.com. It takes 20–25 minutes to discuss the requirement.
Dedicated Manager
Once you discuss the requirement, we will align a dedicated Account Manager to understand your business needs and assist throughout the process.
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Track the progress of your application and always know what’s in progress and what’s done.
Job Completed
Once the job is completed, you will receive registrations & certifications directly to your email ID and at your doorstep.
Frequently Asked Questions
Quick answers to common questions about this service.
What is an Advance Authorisation?
A DGFT authorisation that allows duty-free import of inputs physically incorporated in an export product, with normal allowance for wastage. Fuel, oil and catalyst consumed in production may also be allowed (FTP 2023, para 4.03).
What is SION?
Standard Input Output Norms: product-wise norms, notified in the Handbook of Procedures, that fix how much of each input may be imported for a unit of export product.
What if there is no SION for my product?
You can apply on self-declaration under HBP para 4.07, subject to ratification by the Norms Committee, or seek prior fixation of ad-hoc norms in ANF 4B (HBP para 4.06). Norms ratified on or after 1 April 2015 can be used by others on a repeat basis until 31 March 2028 (Public Notice 07/2026-27).
How long is an Advance Authorisation valid for imports?
12 months from the date of issue, with one revalidation of 12 months allowed (HBP para 4.39).
What is the export obligation period?
18 months from the date of issue, with up to two extensions of six months each on payment of composition fee (HBP para 4.40).
Can I sell the imported inputs or transfer the authorisation?
No. The authorisation and the imported material are under the actual user condition and are not transferable, even after the export obligation is met (FTP para 4.16).
What is the minimum value addition?
15% in general; lower for products in Appendix 4D; 50% for tea and 25% for spices (FTP para 4.09).
Do I need an RCMC for Advance Authorisation?
Yes, an RCMC is required when applying for an authorisation under the FTP (para 2.57), and a branch or manufacturing unit that applies must appear in the electronic RCMC and IEC (HBP para 4.03). See our RCMC page.
How do I close an Advance Authorisation?
Within six months of expiry of the EO period, link your shipping bills and apply online in ANF 4F. The Regional Authority issues the EODC / Redemption Certificate if the export obligation is met (HBP paras 4.43 and 4.47).
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