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.

Eligibility and Planning

Who Should Apply for Advance Authorisation?

This page is designed for exporters searching for Advance Authorisation consultants, DGFT licence support, SION norms guidance, and a practical roadmap from application to redemption.

Key eligibility checks

  • Manufacturer exporters importing inputs for products meant for export.
  • Merchant exporters tied to a supporting manufacturer with traceable input consumption.
  • Exporters using notified SION or seeking ad-hoc norms where SION is unavailable.
  • Businesses able to maintain value addition, actual user, and export obligation records.

What makes this scheme valuable

Advance Authorisation helps reduce landed cost by allowing duty-free import of eligible inputs used in export production. That is why the page targets commercial search intent around advance authorisation application, DGFT consultant, and export obligation support.

It is also a compliance-heavy scheme. Strong rankings depend on showing real expertise around SION, ad-hoc norms, annual requirement, actual user condition, and redemption rather than generic promotional copy.

Documents Required

Advance Authorisation Documents and Data Points

Exporters frequently search for advance authorisation documents required before filing. In practice, approval quality depends on how well the application explains the input-output relationship, value addition, and policy basis for the claim.

  • IEC, RCMC, and valid DSC for DGFT portal filing.
  • Product description, export product technical details, and manufacturing flow chart.
  • Input-output ratio or Bill of Materials with wastage and yield details.
  • SION reference or ad-hoc norms justification with technical annexures.
  • Past export performance and annual requirement basis, where applicable.
  • Undertakings, declarations, and supporting records required for redemption and EODC.
Compliance Risks

Common mistakes that trigger objections

Wrong SION or incorrect input description causing DGFT or Customs objections.

Failure to mention authorisation details correctly in shipping bills and export documents.

Mismatch between Bills of Entry, consumption records, and export quantities.

Missed export obligation timelines leading to duty, interest, and penalty exposure.

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.

Timelines and References

Timelines, Government References, and Related Services

Practical compliance timeline

Application stage: assess SION availability, product description, wastage, value addition, and import plan before filing.

Post-issue stage: register the licence, manage imports, and maintain a clean trail between Bills of Entry, production, and exports.

Export obligation stage: monitor quantity, value, and time limits. If you are at risk of delay, review export obligation extension support before the position becomes a penalty issue.

Closure stage: compile redemption records and move toward Advance Authorisation redemption and EODC closure to release pending liability cleanly.

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).

Need dedicated closure support for an existing license? Visit our Advance Authorisation redemption and EODC closure service for ANF 4F filing, value addition review, customs bond cancellation, and bank guarantee release.

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.

Advance Authorisation FAQs

Who can apply for Advance Authorisation?

Manufacturer exporters and merchant exporters tied to supporting manufacturers can apply, subject to product eligibility, value addition norms, and DGFT documentation requirements.

What can I import under the Advance Authorisation scheme?

Eligible inputs physically incorporated in the export product can be imported duty free, including raw materials, components, consumables, catalysts, fuel, oil, and packing materials, subject to the applicable norms and policy conditions.

What is Advance Authorisation for Annual Requirement?

Advance Authorisation for Annual Requirement allows eligible exporters with a track record to obtain a licence based on projected annual needs instead of applying shipment by shipment, subject to DGFT conditions.

What is the export obligation period under Advance Authorisation?

The standard export obligation period is generally 18 months from the date of issue of the authorisation, unless a specific policy condition or sector-specific relaxation applies.

What documents are required for Advance Authorisation application?

Typical documents include IEC, RCMC, product details, input-output ratio, technical write-up, past export data where applicable, Bill of Materials, manufacturing flow details, and supporting declarations required on the DGFT portal.

What happens if export obligation is not fulfilled?

If export obligation is not fulfilled, the duty saved along with applicable interest and penalties may become payable, and the authorisation can create DGFT and Customs compliance exposure until it is regularised or closed properly.

Can I sell imported inputs in the domestic market?

No. Inputs imported under Advance Authorisation are generally subject to actual user condition and must be used in accordance with the licence and export obligation requirements.

What is Appendix 4H or the consumption register?

The consumption register is the working record used to map imported inputs against production and exports. It becomes critical during redemption, EODC review, and any Customs or DGFT verification.

Can I claim Duty Drawback together with Advance Authorisation?

The interaction between Advance Authorisation and Duty Drawback depends on the duty element and the exact benefit claimed. The structure must be reviewed carefully to avoid ineligible or overlapping claims.