How to Get Advance Authorisation Licence in India
Exporting is a powerful way to grow your business in India's global market. However, managing input costs and navigating complex customs regulations can create significant bottlenecks for growing enterprises. Our Advance Authorisation Scheme helps businesses like yours streamline the import process by allowing you to bring necessary inputs duty-free specifically for export production.
Before you start
- Valid IEC (Import Export Code) issued by DGFT
- GST Registration with active status
- Active Bank Account linked to current business operations
Step-by-step
Verify Eligibility and Select Scheme Type
Confirm your unit is eligible under the Advance Authorisation (AA) scheme. Decide between 'Single Entry' for specific orders or 'Continuous AA Licence' for ongoing manufacturing, ensuring you select the correct sub-scheme based on product codes.
Prepare Required Documentation
Gather essential documents including IEC, GST Certificate, PAN Card, and a detailed list of inputs required. You must also prepare an undertaking letter committing to export 100% of the value added in imported materials.
Apply via DGFT Online Portal
Log in to the Directorate General of Foreign Trade (DGFT) online portal using your IEC credentials. Fill out Form AA-2 for Single Entry or Form AA-104/AA-105 for Continuous Licence, ensuring all product-wise details are accurate.
Submit Application and Pay Fees
Upload scanned copies of documents in the prescribed format. Pay the applicable government processing fees online via net banking or UPI before clicking submit to initiate the review process.
Track Application Status
Monitor your application status on the DGFT portal using your unique reference number generated upon submission. The authority typically reviews applications within 7-15 working days for standard cases.
Receive Licence and Compliance Check
Once approved, download the digital licence copy (AA Form). Ensure you strictly adhere to export timelines; failure to utilize inputs before expiry may result in penalty levies or requirement of duty payment on unutilized quantities.
Common mistakes to avoid
- Submitting incorrect HS Codes for imported raw materials which leads to rejection.
- Failing to maintain a proper ledger linking specific imports to export shipments.
- Ignoring the validity period, leading to penalties on duty-paid inputs not exported in time.
Frequently asked questions
Is there an annual renewal fee for AA Licence?
Yes, Continuous AA Licences require periodic renewal. You must file Form AA-104/AA-105 again before the expiry date to maintain your duty-free status.
Can I use this licence for domestic sales?
No. Advance Authorisation is strictly restricted to goods manufactured solely for export purposes using imported inputs or local materials exempted under specific schemes.
What happens if I cannot export the full value of imports within 18 months?
You must pay customs duty on the unutilized portion. The system calculates this based on the difference between import cost and actual export realization, plus applicable interest.
Is there a minimum turnover requirement for AA Licence?
There is no strict statutory minimum turnover to apply, but you must demonstrate genuine intent to manufacture goods specifically for foreign markets with valid orders or contracts.
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