Advance Authorisation Licence — Post-Registration Compliance Guide
Managing an Advance Authorisation Licence requires strict adherence to timelines and documentation protocols. Once registered under the RoDTEP or DGFT frameworks in India for FY26/27, your business must ensure every export claim is backed by valid evidence of duty-paid inputs used specifically for that exported product. Failure to comply with these obligations can lead to significant financial penalties and loss of licence privileges. This guide outlines the critical recurring tasks you must perform monthly and annually to maintain your status as a compliant exporter.
Before you start
- Validly registered Advance Authorisation Licence (AAL) number from DGFT or RoDTEP portal.
Step-by-step
Monthly Export Verification
Every month, cross-reference your export invoices with the duty-paid input bills to ensure every exported unit has a corresponding claim for drawback. Maintain a digital ledger mapping specific AAL numbers to individual shipments.
Submit Monthly Returns (Form 1)
File Form 1 on the DGFT portal within seven days of the end of each month, declaring all exports made during that period. Ensure the data matches your physical shipping documents and customs clearance receipts exactly.
Annual Return Filing
Submit the Annual Returns (Form 2) by March 31st every year to declare total imports, exports, and duty claims for the financial year. This is a mandatory requirement even if no exports were made during the period.
Audit Preparation
Conduct an internal audit of your AAL records before the annual deadline to ensure all input bills are genuine and not fabricated solely for cash flow benefits. Prepare a summary report ready for DGFT inspection if requested.
Renewal Application
Apply for renewal at least 30 days prior to the expiry of your current licence validity period through the designated government portal. Submit updated business plans and financial statements as part of the application package.
Common mistakes to avoid
- Failing to file monthly returns within seven days, which attracts immediate penalties.
- Claiming drawback on exports that do not match the specific input bills submitted under AAL.
- Not maintaining a proper inventory of duty-paid inputs leading to audit discrepancies.
Frequently asked questions
What is the deadline for filing monthly returns?
You must file Form 1 on the DGFT portal within seven days from the end of each calendar month in which exports were made or claims were filed.
Can I claim drawback if my export shipment is delayed at customs?
Yes, provided you have obtained a valid shipping bill number and proof that goods are being exported. However, the final clearance must be reflected in your return within the statutory timeline.
What happens if I miss the annual filing deadline of March 31st?
Late filings attract a penalty fee calculated as a percentage of the duty claimed plus interest. Repeated delays may lead to suspension or cancellation of your Advance Authorisation Licence.
Do I need separate AAL numbers for different export destinations?
Generally, one licence covers all exports unless specific bilateral agreements require distinct authorisations. Always check the latest DGFT circulars regarding destination-specific restrictions in 2026.
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