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Tax benefit Commerce

Advance Authorisation Scheme

Duty-free import of inputs needed for export production

Maximum benefit
Zero duty on imported inputs for exports
Typical processing
5-7 days for authorisation; 18 months export obligation window
Apply on official portal

About this scheme

Advance Authorisation Scheme allows duty-free import of inputs, fuel, oil, energy sources, catalysts that are physically incorporated into the export product. Issued by DGFT before export. Specific Input-Output Norms (SION) apply.

What you get

  • 0% customs duty on imported inputs
  • 0% IGST on imports
  • Annual aggregate limit (last 3 years average export performance × 1.5x)
  • 18-month export obligation period from authorisation date
  • 6x export obligation (value addition norm)
  • Inputs can be sold in DTA after meeting export obligation

Who qualifies

Indian manufacturer-exporters and merchant-exporters tied to manufacturers. Authorisation valid for 12 months (extendable). Standard SION used for ~7,000 products; non-SION requires ad-hoc norms.

Industries (NIC divisions)
Food processingBeveragesTextilesApparelLeatherPaperChemicalsPharmaPlastics / rubberFabricated metalsElectrical equipmentMachineryOther manufacturing
Business types
ProprietorshipsPartnershipsPrivate LimitedLLPsOne Person CompaniesPublic Limited

Available across India (central scheme).

How to apply

  1. 1File application on DGFT portal with SION reference
  2. 2Submit export contract / confirmed order
  3. 3Authorisation issued within 5-7 days
  4. 4Import inputs duty-free
  5. 5Manufacture + export within 18 months
  6. 6File Export Obligation Discharge Certificate (EODC)

Key terms and conditions

  • 6x value addition required (vs duty saved)
  • Inputs must be physically incorporated in export
  • Export obligation cannot be transferred between products
  • Penalty + duty recovery on default

What disqualifies you

  • Trading-only exports without manufacturing excluded
  • Some negative-list items excluded
  • Pre-import vs post-import has different rules

Documents typically required

  • IEC code
  • Detailed input-output ratio
  • Export contract OR confirmed order
  • SION reference

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.