Advance Authorisation Scheme (AAS)

Duty Exemption Scheme under Foreign Trade Policy (FTP)

Overview

The Advance Authorisation Scheme (AAS) is a duty exemption scheme under the Foreign Trade Policy (FTP), implemented by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, Government of India.

It allows duty-free import of raw materials, inputs, components, and consumables used in the manufacture of export products, helping exporters remain competitive in global markets.

Objectives

  • Promote exports by reducing input costs.
  • Enable competitive pricing of Indian goods in global markets.
  • Encourage value addition and integration into the global value chain.
  • Support the Make in India initiative by enabling duty-free procurement of inputs.

Eligibility Criteria

Manufacturer Exporters

  • Must manufacture the goods intended for export.

Merchant Exporters with Supporting Manufacturer

  • Must have a tied-up supporting manufacturer.

Deemed Export Suppliers

  • Supplies to EOUs, SEZs, or specified government/World Bank/ADB projects.

License Types

  • Standard Advance Authorisation – For regular exporters.
  • Advance Authorisation for Annual Requirement – For large volume exporters.
  • Advance Authorisation for Deemed Exports – For supplies to EOUs, SEZs, and eligible projects.

Documents Required

1.Importer Exporter Code (IEC)
2.Registration Cum Membership Certificate (RCMC) from EPC
3.GST Registration Certificate
4.Standard Input Output Norms (SION) approval or self-declaration
5.Past export/import data (for annual authorisation)
6.Technical write-up or manufacturing process
7.Chartered Engineer Certificate (if required)
8.CA Certificate (for self-declared norms)
9.Proforma invoice or export order
10.Standard undertaking/declaration

Violations

  • Non-fulfilment of export obligation within stipulated time.
  • Misuse of imported materials for non-export purposes.

Penalties

  • Penalty under the Foreign Trade (Development & Regulation) Act.
  • Action under the Customs Act for duty evasion or misuse.

Activities Covered

  • Physical exports of finished goods with required value addition.
  • Deemed exports such as supplies to SEZ, EOU, or notified projects.

Nature of Assistance

  • Can be clubbed with MEIS/SEIS/RODTEP (subject to FTP provisions).
  • Not allowed with DFIA or EPCG for the same product/export.

Our Process

1

Apply Online

Submit application on DGFT portal with relevant details and documents.

2

Authorisation Issuance

DGFT reviews and issues Advance Authorisation with import/export conditions.

3

Import Duty-Free Inputs

Import raw materials, fuel, and packing materials as per authorisation.

4

Fulfil Export Obligation

Complete physical or deemed exports within 18 months from the date of authorisation.

5

EODC & Closure

File Export Obligation Discharge Certificate (EODC) with DGFT to close authorisation.

Benefits

  • Duty-free import of raw materials, fuel, oil, and packing materials.
  • Exemption from Basic Customs Duty (BCD) and Additional Customs Duty (CVD/SAD) where applicable.
  • Lower value addition requirements for certain products like pharmaceuticals and chemicals.
  • Flexibility to use self-declared norms when SION is not available.

Renewal & Validity

Validity: 12 months from issue date for imports.

Renewal Window: Export obligation to be completed within 18 months (extensions possible).