Advance Authorization Service

Advance Authorization – Duty-Free Imports for Exporters

The Advance Authorization Scheme is a flagship initiative under India’s Foreign Trade Policy that empowers exporters to import raw materials, components, and consumables without paying customs duty, provided the imported goods are used to manufacture export products.

For Indian exporters, this is not just a cost-saving opportunity – it’s a powerful tool to increase profit margins, remain globally competitive, and expand export operations with ease.

What is Advance Authorization?

The Advance Authorization Scheme, regulated by the Directorate General of Foreign Trade (DGFT), allows duty-free import of inputs required for manufacturing export products. The license is granted based on Standard Input Output Norms (SION), which specify the quantity of inputs required to produce a specific quantity of export goods.

Who Can Apply for Advance Authorization?

The scheme is open to:

• Manufacturer Exporters – Producing goods directly for export.
• Merchant Exporters tied with Manufacturers – Coordinating exports through approved production units.
• Supporting Manufacturers – Supplying goods to exporters under a tied agreement.

Key Highlights:

• Zero Customs Duty on raw material imports.
• Inputs must be physically incorporated in the export product.
• Export obligation must be fulfilled within a specified time frame.
• Covers a wide range of sectors including textiles, engineering, chemicals, agriculture, and more.

Benefits of Advance Authorization Scheme

• Zero Customs Duty – Save on import costs for raw materials and consumables.
• Improved Cash Flow – No upfront payment of duties means better working capital management.
• Global Competitiveness – Offer high-quality products at competitive prices.
• Wide Product Coverage – Works across various export industries.
• Flexibility in Imports – Import from any country without high tariff barriers.

Why Choose SKJ Business Solutions LLP for Advance Authorization Services?

With over 45 years of experience in foreign trade consultancy, SKJ Business Solutions LLP is a trusted partner for exporters across India. Our services ensure:

• Accurate eligibility assessment and license application.
• Expert documentation and DGFT liaison for faster approvals.
• Compliance support to avoid penalties.
• End-to-end guidance from application to redemption.

Common Challenges & Our Solutions

• Complex SION Norms – We simplify and interpret norms for your specific product.
• Application Errors – Our experts ensure error-free submissions.
• Export Obligation Tracking – We help you monitor and meet timelines.
• Penalty Avoidance – Our compliance strategies protect your business from fines.

Documents Required for Advance Authorization

• Importer Exporter Code (IEC)
• Registration-cum-Membership Certificate (RCMC)
• Export product details with HS codes
• Past export performance (if applicable)
• Input-output ratio statement
• Proforma invoice of imports
• PAN & GST details

Post-Authorization Compliance

The exporter must fulfill the export obligation within 18 months from the date of license issuance. This includes:

Maintaining detailed records of imports and exports.

• Submitting regular compliance reports to DGFT.
• Ensuring imported inputs are used only for manufacturing export products.
• Failure to comply can result in penalties, interest, and repayment of saved duty.

The Advance Authorization Scheme is a vital tool for exporters to reduce costs, boost efficiency, and expand globally. With professional guidance from SKJ Business Solutions LLP, your journey through the process will be smooth, compliant, and beneficial.

Contact Us Today – Start saving on imports and grow your exports with confidence!