The Advance Authorisation Scheme is a duty exemption program issued to manufacturers so that they can import inputs duty free to produce export-oriented products. These inputs can be raw material, unrefined, unmanufactured or in manufactured state. Online import export course avails you the best of understanding on import export sitting in any corner of the country.

Advance Authorisation Scheme is Issued for:

1 Physical Export 2 Intermediate Supply (Supply to someone who is holding an advance license) 3 Supply of stores on board of foreign going vessels/ aircraft 4 Supply of goods (Deemed exports)

Actual User Condition under Advance Authorisation Scheme:

AA issued and the material imported thereunder will be with actual user condition. It means that the material cannot be transferred, and it has to be used in the premises of the license holder only. The authorization will not be transferable even after completion of export obligation.

Terms and Conditions under Advance Authorisation Scheme:

• Items prohibited for exports or imports are not allowed under Advance Authorisation.
• AA is issued subject to actual user condition.
• Inter Unit Transfer of Inputs permitted.
• Certain products have less/more value addition.
• Certain categories of input are ineligible for benefits.
• Free of cost material permitted for imports.
• Duty drawback shall be available for only duty paid inputs used.
• 15% is the minimum value addition to be achieved.
• Import of restricted items shall also be allowed under AA Scheme.

Steps for Duty free Import Authorization:

Applicants can apply to avail the scheme on the DGFT website www.dgft.gov.in with a valid IEC code.

• Applicants must assure that export proceeds are realized in freely convertible currency. 
• Advance Authorization is valid for 12 months from the date of issue. In case of deemed exports, the Authorization is connected to the contracted duration of project execution or 12 months from the date of issue of Authorization, whichever is more. 
• The exporter has to share their export performance for the last two years. The value of the export realized should be more than 15% of the CIF value of the input covered by the scheme. 
• At the time of export of products, it is mandatory to mention the file number on the export documents like shipping bill, bill of export,

• After completion of export and realization of proceeds, the applicant can request for issuance of transferable Duty Free Import Authorization to the concerned regional authority. 
• Export under Duty Free Import Authorization should be made from a single port. 
• Separate Duty Free Import Authorization shall be issued for each Standard Input Output Norms (SION) and for each port. 
• Duty Free Import Authorization shall not be issued for the export of products where Standard Input Output Norms prescribes actual user conditions for any input.

Digital Exim provides online import export training courses. It is India’s only Integrated Export, Import, Shipping, & Logistics Program. Digital Exim provides export import classes, 6 month consultancy, and life time help desk. Attend a live doubt solving session with our trade managers.    For more information visit our site!