Advance Authorisation

4.1.6

Advance Authorisation necessitates exports with a minimum value addition of 15%, except for items specified in Appendix 11B of HBP v1 and for items in Gems & Jewellery Sector, for which value addition would be as per paragraph 4A.2.1 of HBP v1. [OLD- Advance Authorisations necessitate exports with a minimum value addition of 15%, except for items in Gems & Jewellery sector, for which value addition would be as per paragraph 4A.2.1 of HBP v.1.] Exports to SEZ Units/ supplies to Developers / Co-Developers, irrespective of currency of realization, would also be covered.

(First sentence of above para has been amended vide NTF. NO. 31/2009, DT. 16/02/2010)

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 valueaddition under Advance Authorisation shall be 50%.

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 / sterilization or for manufacture of oils and oleoresins and not for simple cleaning, grading, re-packing etc.