4.1.6

Advance Authorisations shall be issued with a positive value addition.

However, for physical exports for which payments are not received in freely convertible currency, the same shall be subject to value addition as specified in Appendix-11 of Handbook of Procedures (Vol.1). In case of supplies to SEZ Units, irrespective of the currency of realization, Advance Authorisation shall be issued with a positive value addition.

In case of Tea, the minimum value addition under advance Authorisation shall be 100%.

In case of spices (covered by Chapter 9 of the ITC(HS) Classification of Export & Import Items, 2004-09), the minimum value addition under advance Authorisation shall be 15%.