The advance authorizations are issued for duty free imports (RAW MATERIAL) required for export production (FINAL PRODUCT).

a) Advance Authorisation are issued to manufacturers exporters or merchant exporters tied to manufacturer(s) for duty-free imports of inputs.

b) Supply of Goods to ultimate exporter holding another Advance Authorisation / Duty Free Import Authorisation.

c) Supply of Goods to the various categories as mentioned in Chapter 7.02 of the Policy (8 notified categories).

d) Supply of stores on board of the foreign going vessels / aircrafts.

e) Supply to SEZ such as EOU / Project Authority / Deemed Export

f) Supply against E.P.C.G License.

Important Conditions

• Advance Authorisation (AA) should have minimum 15% Value Addition.
•  Under AA ,  Imports shall be with actual User Condition i.e. it shall never be transferable / sold even after EODC is obtained.
• All exempted materials along with wastage should be mentioned in Customs/Proforma Invoice & Shipping Bills. This is a mandatory requirement for obtaining EODC. If it is Deemed Exports, Invoice duly attested by their Excise authorities showing exempted material/ components on net to net basis including wastage and file number is mandatory.
• To avoid any problem with the GST authorities we strongly recommend you to clear the consignments under Bond only without payment of duty.
• If supply to EOU / SEZ, kindly get Bill of Exports, Invoice and ARE-3/ARE-1 form duly attested by GST Authorities , showing list of raw materials (including wastage) and file number.

KINDLY NOTE :

The description & ITC (HS) Code in Shipping Bill, Bill of Exports, Bills of Entry and Authorization should tally exactly as per the Advance Authorization.

Conditions under AA

• Advance Authorisation or materials imported are not transferable even after completion of export obligation. In case Bank Guarantee / LUT has been redeemed, the Licensee can get the duty free inputs processed from any manufacturer under Actual User Condition i.e. for domestic sale.
• Goods already imported / shipped / arrived in advance but not cleared from Customs are also allowed for clearance against Advance Authorisation issued subsequently.
•  The authorisation holder can procure the inputs from Indigenous sources / EOU etc. against Invalidation Certificate / ARO to be issued by the Regional Authorities in terms of para 4.14 of Handbook Redemption / No Bond Certificate:
• Bond Waiver - In case Authorisation holder exports first (before effecting imports) by using imported inputs / indigenously procured raw material, in that case the Authorisation holder can seek waiver of Bond condition by submitting evidence of export made and payment realised to that extent. If exports made are less than the export obligation stipulated in the Authorisation, request for waiver of bond condition, on pro-rata basis, can also be made.

 Export Obligation Discharge Certificate (EODC) –

• In case Authorisation holder imports / procures inputs first and exports later and inputs are consumes as per conditions prescribed in AA,
• the Authorisation holder shall submit application in prescribed  format for EODC / Redemption Certificate