ADVANCED AUTHOR
ISATION
PRESENTED BY:-
GUNEESH CHAWLA(06)
HIMANK GUPTA(07)
SAHIL JAIN(17)
CONTENTS
01
Export Promotion Scheme Under FTP
02
Advanced Authorisation
03
Eligibility Of Advanced Authorisation
04
Documents Required For Availing AA
05
Validity Period For Import And Export
06
Minimal Value Addition
07
Value Addition
08
Details Of Duty Exempted
09
Eligible Quantum Of Inputs For AA
10
Advanced Authorisation For Annual Requirement
11
Actual User Condition For AA
12
Eligibility Condition To Obtain AA For Annual Requirement
13
Self Ratification Scheme
14
Ineligible Categories Of Import
15
Advance release orders / invalidation letter
16
Admissibility / Permissibility For Drawback
17
Domestic Sourcing Of Inputs
18
A Re-export Of Goods Imported Under AA Scheme
19
Redemption & Export Obligation Discharge Certificate
20
Thank You
EXPORT PROMOTION SCHEME UNDER
FTP
EXPORT
PROMOTION
SCHEME
DUTY DUTY
EXEMPTION REWARD EPCG
REMISSION
SCHEME SCHEME SCHEME
SCHEME
ADVANCED DUTY
AUTHORISATI
ON
DUTY FREE
IMPORT
DRAWBACK
(DBK)
MEIS SEIS
AUTHORISATI
ON SCHEME
ADVANCED AUTHORI
SATION
Advanced authorisation is input duties neutraliaztion
scheme under FTP intended to reduce working capital
requirements for exporters.
An Advance Authorization is issued to allow duty free
import of inputs, which are physically incorporated in
export product.
In addition, fuel, oil, energy which are consumed /
utilized to obtain export product, may also be allowed.
ELIGIBILITY OF ADVANCED AUTHORISATION
MANUFACTURER
Issued to (as per para
4.05 (a) & (b) of FTP)
MERCHANT
EXPORTER TIED TO
SUPPORTING
MANUFACTURER
PHYSICAL EXPORT
ADVANCED
AUTHORISATION (including export to
SEZ)
INTERMEDIATE
SUPPLY
Issued for (As per
para 4.05 (c) of FTP)
SUPPLY OF GOODS
(DEEMED EXPORTS)
SUPPLY OF STORES
ON BOARD OF
FOREIGN GOING
VESSEL.
DOCUMENTS REQUIRED FOR AVAILING AA
IEC NO.
RCMC
PROFORMA
INVOICE
LETTERHEAD - 10
COPIES
CERTIFICATE FROM
CA
VALIDITY PERIOD FOR IMPORT
Validity period for import of Advance Authorisation
shall be 12 months from the date of issue of
Authorisation.
EXPORT OBLIGATION PERIOD
Period of 18 months for fulfilment of Export
Obligation (EO) from the date of issue of
authorization allowed, unless otherwise
specified.
MINIMAL Minimum value addition required to be
VALUE achieved under Advance Authorisation is
ADDITION 15%.
Minimum value addition for Gems & Jewellery
Sector is given in paragraph 4.61 of
Handbook of Procedures.
Export Products where value addition could
be less than 15% are given in Appendix 4D.
In case of Tea, minimum value addition shall
be 50%
VALUE ADDITION
VA=( A-B/B) * 100
WHERE,
A =FOB value of export realized/FOR value of supply received.
B =CIF value of inputs covered by Authorisation, plus value of any other
input used on which benefit of DBK is claimed or intended to be claimed
DETAILS OF DUTY EXEMPTED
BASIC CUSTOM DUTY
ADDITIONAL CUSTOM DUTY
EDUCATION CESS
ANTI-DUMPING DUTY
COUNTERVAILING DUTY
SAFEGUARD DUTY
TRANSITION PRODUCT SPECIFIC SAFEGUARD DUTY
INTEGRATED GOODS AND SERVICE TAX (IGST)
(IF THERE IS IMPORT OF GST APPLICBLE ITEMS)
ELIGIBLE QUANTUM OF INPUTS FOR AA
AS PER STANDARD INOUT SELF DECLARATION BASIS
01 OUTPUT NORMS (SION) 04 BY APPLICANT
SPECIAL ADVANCE
SELF RATIFICATION
02 AUTHORISATION FOR
EXPORTS OF APPAREL AND
05 SCHEME BY APPLICANT
CLOTHING ACCESSORIES
ADVANCE AUTHORISATION
03 FOR ANNUAL
REQUIREMENT
ADVANCED
AUTHORISATION Advance Authorisation for Annual
FOR ANNUAL Requirement shall only be issued for
REQUIREMENT items notified in SION, and it shall not
be available in case of adhoc norms
under paragraph 4.03 (b)(ii) of FTP.
This gives them the flexibility to
export any product throughout the
year falling under an export product
group using the duty exempted
imports
Only one license for one product
group or port of registration
ACTUAL USER
CONDITION Advance Authorisation and / or material
FOR AA imported under Advance Authorisation
shall be subject to ‘Actual User’
condition. The same shall not be
transferable even after completion of
export obligation.
However, Authorisation holder will have
option to dispose of product
manufactured out of duty free input once
export obligation is completed
Waste / Scrap arising out of
manufacturing process, as allowed, can
be disposed off on payment of
applicable duty even before fulfillment of
export obligation
ELIGIBILITY
CONDITION TO Exporters having past export
OBTAIN AA FOR performance (in at least preceding
ANNUAL
REQUIREMENT
two financial years) shall be entitled
for Advance Authorisation for
Annual requirement.
Entitlement in terms of CIF value of
imports shall be upto 300% of the
FOB value of physical export and /
or FOR value of deemed export in
preceding financial year or Rs 1
crore, whichever is higher.
SELF RATIFICATION SCHEME
Government has notified a Self-Ratification scheme for Advance
Authorization (under para 4.07 A of the FTP 2015-20) for Authorized
Economic Operators (AEOs) in the interest of ease of doing business.
The scheme allows Advance Authorizations to be taken on self
declaration and self ratification basis for cases where (SION) is not
notified, without the need of going through the process of norms
fixation/ratification by the concerned Norms Committee (NCs).
An exporter (manufacturer or merchant) who holds AEO Certificate
under Common Accreditation Programme of CBEC is eligible to opt for
this scheme.
Applications shall be filed online along with complete details as per
Appendix-4E along with a certificate from Chartered Engineer in
Appendix-4K.
INELIGIBLE CATEGORIES OF IMPORT
Vegetable / edible oils
All types of cereals
All spices other than
light berries
all types of fruits and
vegetables
Horn,Hoof & any other
organ of animal
Honey
Rough Marble Blocks
Vitamins
Perfumes and Perfumery
Compouds
Biotechnology Items and
Related Products
Rough Granite
Waste/Scraps of all types
ADVANCE RELEASE ORDERS (ARO) /
INVALIDATION LETTER
ARO or invalidation letter is required when an
exporter is importing inputs from state trading
corporations where ARO is denominated in
freely convertible FOREX or INR
However, supplies may be obtained against
authorisation from EOU/EHTP/BTP/STP/SEZ
UNITS ,without using ARO or invalidation
letter
ADMISSIBILITY / PERMISSIBILITY FOR
DRAWBACK
In case of an Advance Authorisation,
drawback shall be available for any
duty paid material, whether imported
or indigenous, used in goods
exported, as per drawback rate fixed
by DoR, Ministry of Finance
(Directorate of Drawback). Drawback
allowed shall be mentioned in
Authorisation.
DOMESTIC SOURCING OF INPUTS
Holder of an Advance Authorisation can procure inputs from
01 indigenous supplier/ State Trading Enterprise/EOU/EHTP/BTP/
STP in lieu of direct import. Such procurement can be against
Advance Release Order (ARO), or Invalidation Letter.
02 When domestic supplier intends to obtain duty free material for
inputs through Advance Authorisation for supplying resultant
product to another Advance Authorisation / DFIA / EPCG
Authorisation, Regional Authority shall issue Invalidation Letter
03 Regional Authority may issue Advance Release Order
or Invalidation Letter at the time of issue of
Authorisation simultaneously or subsequently.
Advance Authorisation holder under DTA can
04 procure inputs from / SEZ units without obtaining
Advance Release Order or Invalidation Letter
04
05
Regional Authority shall issue Advance Release Order
if the domestic supplier intends to seek refund of
duties exempted through Deemed Exports mechanism
as per provisions under Chapter-7 of FTP.
A RE-EXPORT OF GOODS IMPORTED UNDER AA
SCHEME
Goods imported against Advance
Authorisation Scheme, which are
found defective or unfit for use, may
be re-exported, as per Department of
Revenue guidelines. The
authorisation holder has to inform
the Regional Authority who has
issued the authorisation before
re-export of such defective goods.
REDEMPTION & EXPORT OBLIGATION DISCHARGE
CERTIFICATE (EODC)
On completion of exports and imports, the Authorisation holder shall submit online application in
ANF-4F
In such cases, if EO has been fulfilled, the
Regional Authority may issue EODC /
01 Redemption Certificate to Authorisation
holder and forward a copy to the Customs
authority at the port of registration of
Authorisation indicating the same details of
proof of fulfilment of EO as stated in
paragraph (a) above evidencing fulfilment of
Export Obligation.
Copy of EODC will also be endorsed by
Regional Authority to Customs at the Port of
02 Registration by post till system of transmitting
these through EDI under message exchange
between DGFT and CBEC is introduced.
Thank you
