ADVANCE AUTHORISATION SCHEME

(ERSTWHILE ADVANCE LICENCE SCHEME)

Advance Authorisation

4.1.3

An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed/utilised in the course of their use to obtain the export product, may also be allowed under the scheme. However, the Director General of Foreign Trade, by means of Public Notice, may in public interest exclude any product(s) from the purview of advance Authorisation.

Duty free import of mandatory spares upto 10% of the CIF value of the Authorisation which are required to be exported/ supplied with the resultant product may also be allowed under Advance Authorisation.

Advance Authorisations are issued on the basis of the inputs and export items given under SION. However, they can also be issued on the basis of Adhoc norms or self declared norms as per para 4.7 of Handbook of Procedures (Vol. I). Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s):

i) for Physical exports (including exports to SEZ); and/ or

ii) for Intermediate supplies; and /or

iii) to the main contractor for supply of goods to the categories mentioned in paragraph 8.2 (b), (c), (d), (e), (f), (g), (i) and (j) of the Policy;

iv) supply of stores on board of the foreign going vessel/ aircraft subject to the condition that there is specific SION in respect of the item(s) supplied.

for import of inputs required in the manufacture of goods. In addition, in respect of supply of goods to specified projects mentioned in paragraph 8.2 (d), (e), (f), (g) and (j) of the Policy, an Advance Authorisation can also be availed by the subcontractor of the main contractor to such project provided the name of the sub contractor(s) appears in the main contract.

Such Authorisation can also be issued for supplies made to United Nations Organisations or under the Aid Programme of the United Nations or other multilateral agencies and paid for in free foreign exchange.

(Please refer CUS CIR NO. 16/2006 DATE 09/05/2006)