ZERO DUTY IMPORT

Maximize Profits with Advance Authorisation

Import raw materials, fuel, oil, and catalysts without paying Customs Duty. We handle everything from SION Norm Fixation to final EODC Redemption.

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What is Advance Authorisation?

The Advance Authorisation (AA) Scheme allows duty-free import of inputs (raw materials), which are physically incorporated in the export product. In addition to raw materials, fuel, oil, catalysts, and packaging materials required for production can also be allowed duty-free.

The scheme operates on the principle that taxes/duties should not be exported. By waiving Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and IGST, the scheme makes Indian products competitive globally. However, it comes with an Export Obligation (EO) to export finished goods of a specified value and quantity.

Zero Duty

Complete waiver of BCD + SWS + IGST on eligible inputs.

Physical Exports

Applicable for manufacturer exporters or merchant exporters tied to a supporting manufacturer.

18 Months Validity

Standard period to fulfill the export obligation from the date of license issuance.

Technical Core

Norm Fixation (SION)

Determining how much input is allowed for your export output.

Standard Input Output Norms (SION)

Pre-defined norms by DGFT. If your product falls under SION, the license is issued instantly based on these ratios.

Ad-hoc Norms (Self Ratification)

If SION doesn't exist, we apply for Ad-hoc norms. We prepare technical data for consumption, wastage, and yield for Norms Committee approval.

Self Declaration (Advance Release)

Get immediate license based on self-declaration while norms are being ratified — essential for urgent shipments.

Why is Norm Fixation Critical?

  • Wastage Limits: Incorrect wastage claims can result in heavy penalties during audits.
  • Input Description: License description must match the Bill of Entry exactly to avoid customs objections.
  • Value Addition: Minimum 15% value addition required. We calculate this precisely to ensure eligibility.
Lifecycle

From Application to Closure

1

Apply

File online application on DGFT portal with valid RCMC and DSC.

2

Register

Register the license at the Port of Registration (Customs).

3

Import

Import inputs duty-free. Goods must be used in manufacturing.

4

Export

Fulfill Export Obligation within 18 months. Mention License No on Shipping Bills.

Redemption

Submit documents to DGFT to obtain EODC and close the file.

Critical Compliance

Redemption (EODC) Services

Getting the license is easy; closing it is the hard part. Failure to submit proof of export results in heavy penalties and demand notices from Customs. We specialize in the Redemption process to get your Export Obligation Discharge Certificate (EODC).

Our Closure Checklist:

  • Consolidation of Shipping Bills & e-BRCs.
  • Mapping of Import Bill of Entry vs Export.
  • ANF-4F Application Filing.
  • Bond Cancellation at Customs.

Pending EODC?

Don't let open licenses block your future benefits. We clear backlogs.

Why CloudDesk for Advance-Authorisation?

An AA license is a legal contract with the government. If you don't fulfill the 'Export Obligation,' the penalties are crushing. CloudDesk acts as your Compliance Shield.

1. SION & Ad-hoc Norms Optimization

Customs allows you to import based on SION (Standard Input-Output Norms). But what if your product is new? CloudDesk specializes in Fixation of Ad-hoc Norms with the Norms Committee at DGFT, ensuring you get the maximum import entitlement for your specific manufacturing process.

2. The "Pre-Import" Condition Management

In 2026, the "Pre-import" rule for IGST exemption is a minefield.CloudDesk ensures your import and export timelines are perfectly synced so you don't get hit with retrospectiveIGST demands and interest years later.

3. Real-Time "Obligation" Tracker

The biggest failure in AA is missing the Export Obligation (EO) deadline. CloudDesk provides a Live Consumption Ledger. We track every gram of raw material imported against every unit exported, alerting you 6 months before the deadline if your EO is lagging.

4. End-to-End Redemption (EODC)

Getting the license is only 10% of the work. The real battle is getting the Export Obligation Discharge Certificate (EODC).We manage the entire redemption process—linking Shipping Bills to Bills of Entry—to ensure your bond is cancelled and your bank guarantee is released.

Frequently Asked Questions

Who can apply for Advance Authorisation?

Manufacturer exporters or merchant exporters tied up with supporting manufacturers. You must have a minimum 15% Value Addition (positive value addition for certain sectors like electronics).

What can I import under this scheme?

Raw materials, components, catalysts, consumables, and packing materials physically incorporated in the export product. You cannot import capital goods (machinery) under this—that requires an EPCG license.

What is "Advance Authorisation for Annual Requirement"?

If you have been exporting for the last two financial years, you can get a single license for your entire year's import needs based on your past performance, rather than applying for a new license for every order.

How much time do I have to export the finished goods?

The standard period is 18 months from the date of issue of the license. For defense, software, or specialized projects, this can be longer.

What happens if I fail to export?

This is the brutal part. You must pay all the exempted Customs duties plus 15% interest from the date of import. CloudDesk’s primary job is to ensure you never fall into this trap.

Can I sell the imported raw materials in the domestic market?

Absolutely not. Materials imported under AA are subject to "Actual User Condition." They cannot be transferred or sold even after the export obligation is completed (though the finished goods can be sold domestically after EO is met).

What is a "Consumption Register" (Appendix-4H)?

It is a mandatory logbook showing exactly how much raw material was used for each export batch. In 2026, DGFT audits these digitally. CloudDesk’s Auto-Ledger generates this report for you with one click.

Can I use Advance Authorisation and Duty Drawback together?

No. Since you didn't pay duty on imports, you can't claim a "Drawback" of that duty. However, you can claim the "Customs portion" of drawback if you used some domestic duty-paid inputs. CloudDesk calculates the most profitable path for you.