Advance Authorisation Scheme (AAS)

Duty Exemption Scheme under Foreign Trade Policy (FTP)

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Video Explanation & Insights

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.

Step-by-Step 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.