Advance Authorisation

Advance Authorisation (AA) is an export promotion scheme under the Foreign Trade Policy 2023 that lets manufacturer and merchant exporters import inputs duty-free for making export products. The Directorate General of Foreign Trade (DGFT) runs the scheme, and it remains open for online applications in the 2026-27 financial year.

The scheme removes the customs duty burden on production materials, including Basic Customs Duty and integrated tax, as long as the exporter meets the export obligation. This helps Indian businesses cut input costs and compete better in global markets.

Advance Authorisation - Introduction

Advance Authorisation (AA) allows duty-free import of inputs that are physically incorporated into an export product, including normal wastage. You may also import fuel, oil, and catalysts consumed during the production process. DGFT issues this authorisation based on the policies and procedures in force on the date of issuance.

You may obtain Advance Authorisation for inputs relative to the resultant product based on the following criteria:

1. According to the Standard Input Output Norms (SION) as notified in the Hand Book of Procedures.
2. On the basis of self-declaration as per paragraph 4.07 of the Hand Book of Procedures.
3. Through applicant-specific prior fixation of norms by the Norms Committee per para 4.06.
4. On the basis of the Self Ratification Scheme as per para 4.06 of the Foreign Trade Policy.

The quantity of inputs allowed for a given product depends on specific norms that account for manufacturing wastage. You may choose from the sector-wise list of SION provided by the DGFT, or apply for ad-hoc norms if standard options do not suit your specific needs.

Inputs imported under this scheme remain exempt from duties such as Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping duty, Safeguard Duty, Transition Product-Specific Safeguard duty, Integrated tax, and Compensation Cess, subject to specific conditions. You may import the following items duty-free: those physically incorporated into the final export product, and fuel, oil, or catalysts essential to the production process.

Key Information

2026 Updates to the Scheme

The Ministry of Commerce and Industry brought several reforms to the Advance Authorisation scheme in 2026 to speed up approvals and make the process more predictable. A PIB release in April 2026 said the Norms Committees under DGFT were strengthened by raising the number of technical members from 12 to 22. Between January 2026 and 7 April 2026, these committees held 38 meetings, took up 3,925 cases and disposed of 1,770 of them.

DGFT also issued Public Notice No. 28/2025-2026 dated 23 October 2025, which amended Para 4.84(b) of the Hand Book of Procedures 2023. Under the amended procedure, the export obligation period is 120 days from the date of import of each consignment. For findings and mountings made of gold, platinum, or silver used for the export of jewellery, the export obligation period is 180 days from the date of import. No further extension in this export obligation period is allowed.

Through Trade Notice No. 15/2026-27 dated 5 August 2026, DGFT removed the need to submit physical duty payment challans for Export Obligation Discharge Certificate (EODC) applications under the Advance Authorisation and EPCG schemes. The authenticated duty payment information is now available electronically on the DGFT portal, which makes the EODC process digital and paperless.

Benefits

When you take part in this scheme, you enjoy significant financial relief for your export business:

• You are exempt from paying Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty on inputs.
• You are also exempt from IGST and Compensation Cess, which helps improve your cash flow significantly.

Eligibility

You are eligible to apply if you are a manufacturer exporter or a merchant exporter tied to a supporting manufacturer. For instance, if a textile firm manufactures textiles, it can apply directly, or a merchant exporter working with that firm can also secure this benefit. For pharmaceutical products manufactured through a Non-Infringing (NI) process, only the manufacturer exporter can apply.

This scheme supports:

• Physical exports, including those to Special Economic Zones (SEZ).
• Intermediate supplies.
• Supply of goods to specific categories mentioned in FTP paragraph 7.02.
• Supply of 'stores' for foreign-going vessels or aircraft, provided there are specific SION norms available for those items.

Export Obligation Requirements:

• You should ensure a minimum value addition of 15%.
• You should fulfill the export obligation within 120 days from the date of import of each consignment, or 180 days for jewellery findings and mountings made of gold, platinum, or silver. No further extension is allowed.

Application Process

You should submit your application online through the official DGFT portal. Follow these simple steps:

STEP 1 - Visit the official DGFT website at dgft.gov.in and obtain your PAN-based IEC (Import Export Code). Link your existing IEC if you have one.

STEP 2 - Register your Digital Signature Certificate (DSC) under the 'My Dashboards' section on the portal.

STEP 3 - Make sure your RCMC (Registration cum Membership Certificate) is obtained from the relevant Export Promotion Council (EPC) as per Appendix 2T.

STEP 4 - Navigate to 'Services' then 'Advance Authorisation / DFIA' and choose 'Apply for Advance Authorisation (ANF 4A)' to fill the application form.

STEP 5 - Attach the required documents, pay the application fee based on the CIF value of imports, and submit the form for processing by the DGFT Regional Authority.

Advance Authorisation for Spices

You may only import spices under Chapter 9 of ITC (HS) duty-free if you are performing activities like crushing, grinding, sterilization, or manufacturing oils and oleoresins. This benefit is not available for simple cleaning, grading, or re-packing activities.

Documents

You should keep the following documents ready for your application process:

• Copy of your IEC.
• Detailed description and ITC HS code of the export product.
• Quantities and FOB value of items to be exported.
• Description and ITC HS code of import items.
• Quantities and CIF value of items to be imported.
• Applicable IGST and custom duty percentages for imported items.
• Designated Port of Registration.
• Valid RCMC from an appropriate Export Promotion Council.
• Industrial license (if applicable) and relevant CA certificates for consumption data.

References

AA Module User Manual V2.0

Advance Authorisation FAQs

ANF-4A Application Form for Advance Authorisation

PIB Release on Norms Committee Reforms

FAQ's

Who can apply for Advance Authorisation?

Manufacturer exporters or merchant exporters tied to supporting manufacturers are eligible to apply.

Can I apply for Advance Authorisation as a pharmaceutical exporter?

Yes, you can. However, for products made through a Non-Infringing (NI) process, only the manufacturer exporter is eligible to apply.

What benefits does this scheme offer?

This scheme allows you to import inputs duty-free that are physically incorporated into the export product, including essential fuel, oil, and catalysts.

Are there tax exemptions available?

Yes, your inputs are exempt from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Safeguard Duty, IGST, and Compensation Cess.

Is there a provision for importing spices?

Yes, you may import spices under Chapter 9 duty-free specifically for crushing, grinding, sterilization, or manufacturing oil and oleoresins. It does not apply to simple cleaning or repacking.

What is the deadline for fulfilling the export obligation?

You should fulfill your export obligations within 120 days from the date of import of each consignment. For jewellery findings and mountings made of gold, platinum, or silver, the period is 180 days. No further extension is allowed.

What are SION norms?

SION are sector-specific norms notified by the DGFT that define the input-output ratios for various export products.

Does the scheme apply to SEZ or intermediate supplies?

Yes, the scheme covers physical exports, supplies to SEZs, intermediate supplies, and other categories specified under the Foreign Trade Policy.

How do I initiate the application?

You should log in to dgft.gov.in and proceed via the 'Services' menu to apply for the Advance Authorisation (ANF 4A).

Why is an RCMC necessary?

An RCMC from your relevant Export Promotion Council is necessary to claim export benefits and apply for specific trade licenses.