Advance Authorisation

4.1.6

Advance Authorisations necessitate exports with a positive value addition. Exports to SEZ Units / supplies to Developers / Codevelopers, irrespective of currency of realization, would also be covered.

For physical exports for which payments are not received in freely convertible currency, same shall be subject to value addition as specified in Appendix-11 of HBP v1.

In case of Authorisation for import of Tea, minimum value addition under Advance Authorisation shall be 100%.

Similarly, in case of spices {covered by Chapter 9 of ITC(HS)}, duty free import of spices shall be permitted only for value addition purposes, like crushing / grinding / sterlization, or for manufacture of oils and oleoresins, and not for simple cleaning, grading, repacking etc. and minimum value addition shall be 15%.