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Advance Authorisation Scheme

 

Source: PIB

 

Context: The Directorate General of Foreign Trade (DGFT) has implemented the Advance Authorisation Scheme under the Foreign Trade Policy, which allows duty-free import of inputs for export purposes. The eligibility of inputs is determined by Sector-specific Norms Committees based on input-output norms.

  • To streamline the norms fixation process, the DGFT has created a user-friendly and searchable database of Ad-hoc Norms fixed in previous years. These norms can be used by any exporter without requiring a Norms Committee review, as outlined in the Foreign Trade Policy 2023.
  • This trade facilitation measure simplifies the advance authorisation and norms fixation process, leading to shorter turnaround times for exporters, improved ease of doing business, and reduced compliance burden.

 

About Advance Authorization Scheme:

  • It allows the duty-free import of inputs, which are physically incorporated into an export product.
  • In addition to any inputs, packaging material, fuel, oil, and catalyst which is consumed/utilized in the process of production of export product, is also allowed.
  • DGFT provides a sector-wise list of Standard Input-Output Norms (SION)under which the exporters may choose to apply.
  • Advance Authorization is valid for 12 months from the date of issue of such Authorization.