How to Apply for an Advance Authorisation Scheme in India
The Advance Authorisation (AA) scheme allows exporters to import inputs duty-free (customs duty, IGST, compensation cess) for use in manufacturing export products. It is issued by the DGFT and is one of the most significant export promotion schemes under India's Foreign Trade Policy.
Before you start
- IEC (Import Export Code) from DGFT
- RCMC (Registration cum Membership Certificate) from the relevant Export Promotion Council
- SION (Standard Input Output Norms) for your export product, or a self-declared SION if not available
- Exporter profile on DGFT portal with current KYC
- Export obligation discharge plan
Step-by-step
Identify the Applicable SION Norms
Check the DGFT's SION (Standard Input Output Norms) database for your export product's HS code. SION specifies the standard quantity of each input allowed duty-free per unit of export output. If no SION exists, you can apply for an Advance Authorisation with self-declared norms (Ad-hoc norms) subject to pre-export verification.
Log in to DGFT Portal and Select Application Type
Visit dgft.gov.in and navigate to the 'Advance Authorisation' application module. Select whether you are applying under the Physical Export, Deemed Export, Intermediate Supply, or Annual Advance Authorisation route.
Fill Application Form ANF-4A
Complete Form ANF-4A with details of: the export product (HS code, quantity, FOB value), the inputs to be imported (quantity, CIF value, HS codes), applicable SION norms, and the export obligation period (typically 18 months from the date of issue).
Submit Application and Pay Fee
Submit the application online with supporting documents — IEC, RCMC, and any prior AA/EPCG details. Pay the application fee electronically. DGFT typically processes AA applications within 30 working days.
Receive Advance Authorisation Letter
On approval, DGFT issues an Advance Authorisation letter with a unique authorisation number. Register this authorisation with the relevant Port of Import customs office before importing the inputs.
Discharge Export Obligation
Export the finished goods within the stipulated period (18 months, extendable by 6 months). File the Export Obligation Discharge Certificate (EODC) with DGFT within 3 months after fulfilling the export obligation. Failure to discharge results in recovery of the duty foregone plus interest and penalties.
Common mistakes to avoid
- Importing inputs before registering the AA with Customs — duty exemption is only valid after registration at the port of import.
- Using incorrect SION norms — importing more inputs than allowed under SION is treated as excess import and duty is recovered on the excess quantity.
- Missing the export obligation period without applying for an extension — the default 18-month window can be extended but only by filing a request before expiry.
- Not filing EODC in time — even after completing exports, delayed EODC filing attracts interest on the duty foregone.
Frequently asked questions
Can a Deemed Export use the Advance Authorisation scheme?
Yes. Supplies to EOUs, SEZ units, EPC projects, and government-funded projects qualify as Deemed Exports and are eligible for Advance Authorisation for the inputs used in such supplies.
What is the difference between Advance Authorisation and EPCG?
Advance Authorisation covers duty-free import of raw material inputs for a specific export product. EPCG (Export Promotion Capital Goods) scheme covers duty-free import of capital goods (machinery) against a 6x export obligation over 6 years.
Is IGST also exempted under Advance Authorisation?
Yes. Under the current Foreign Trade Policy, AA holders are exempt from Customs Duty, IGST, and Compensation Cess on inputs imported against the authorisation.
What if the export product has no SION?
You can apply for a 'self-declared' Advance Authorisation based on your own input-output norms. These applications are subject to pre-import verification by a Chartered Engineer or the relevant EPC before DGFT issues the authorisation.
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