How to Apply for an Advance Authorisation Scheme in India
The Advance Authorisation (AA) scheme allows exporters to import inputs duty-free — Basic Customs Duty and IGST, and, where still applicable to the specific input, GST Compensation Cess (note: Compensation Cess was wound down on almost all goods under the GST 2.0 rate rationalisation effective September 2025, with the levy itself sunsetting by 31 March 2026, so confirm current cess treatment for your product before relying on this exemption) — for use in manufacturing products meant for export, and it remains one of the most widely used export promotion schemes under India's Foreign Trade Policy. It is issued and administered by the Directorate General of Foreign Trade (DGFT) and is available for physical exports, deemed exports, and intermediate supplies to other AA or EPCG holders. The scheme works on a norms-based system — either the pre-notified Standard Input Output Norms (SION) for your product, or self-declared norms verified by a Norms Committee where SION does not exist. Because the exemption is tied to a binding export obligation, exporters need to plan procurement, production, and shipment timelines carefully before applying. This guide walks through eligibility, the ANF-4A application process on the DGFT portal, customs registration, and closing out the obligation with an EODC.
Before you start
- IEC (Import Export Code) from DGFT, active and linked to the applicant's PAN
- RCMC (Registration cum Membership Certificate) from the relevant Export Promotion Council or Commodity Board
- SION (Standard Input Output Norms) for your export product, or grounds to apply for self-declared/ad-hoc norms if none exists
- Digital Signature Certificate (Class 3) registered on the DGFT portal for the authorised signatory
- Exporter profile on the DGFT portal with current KYC, bank details, and IEC-linked GSTIN
- Firm's PAN, GST registration, and constitution documents (partnership deed, MOA/AOA, etc. as applicable)
- Export order, proforma invoice, or LC confirming the export product, quantity, and FOB value
- A realistic export obligation discharge plan, including production capacity and expected shipment timeline
Step-by-step
Confirm export eligibility and check for import restrictions
Before applying, verify that the export product is not on the negative/prohibited export list and that the inputs you intend to import are not restricted or subject to a separate licence (such as SCOMET items). Cross-check the product's ITC(HS) classification against current DGFT notifications, since restricted-item lists are amended periodically.
Identify the applicable SION norms
Search the DGFT's SION database using your export product's HS code. SION specifies the standard quantity of each input permitted duty-free per unit of export output.
- If a SION exists for your product, the application is processed faster since norms are pre-verified.
- If no SION exists, you can apply under self-declared (ad-hoc) norms, but these require verification — typically by a Norms Committee, and in some cases a Chartered Engineer certificate — before or shortly after authorisation, which adds processing time.
Register and log in to the DGFT portal
Log in at dgft.gov.in using the firm's IEC credentials and digital signature. Update the exporter profile if any bank, address, or authorised-signatory details have changed, since a mismatch is a common cause of application rejection at the scrutiny stage.
Select the correct Advance Authorisation category
Choose the application route that matches your transaction: Physical Export, Deemed Export, Intermediate Supply, Advance Authorisation for Annual Requirement, or Advance Authorisation by a merchant exporter tied to a manufacturer. Each route has slightly different documentation and value-cap rules, so selecting the wrong category can require refiling.
Fill and submit Form ANF-4A
Complete Form ANF-4A online with:
- Export product details — HS code, description, quantity, and FOB value
- Input details — quantity and CIF value of each input to be imported, mapped to SION or self-declared norms
- Export obligation period (the standard window is 18 months from the date of issue, subject to extension)
- Bank Realisation Certificate (BRC) details of prior exports, if quoting past performance for eligibility
Upload supporting documents — IEC copy, RCMC, export order/LC, and SION reference or ad-hoc norms application.
Pay the application fee
Pay the DGFT application fee electronically through the portal. Fee amounts are linked to the duty saved value and are revised periodically — confirm the current fee schedule on the DGFT website before submission rather than relying on a fixed figure.
Track application status and respond to queries
DGFT reviews applications through Regional Authority (RA) offices and typically issues a decision within a few weeks for norms already covered by SION, though processing can take longer for ad-hoc norms requiring Norms Committee review. Monitor the portal for any deficiency memo or query and respond promptly — unanswered queries are a common cause of delay or automatic closure of the file.
Receive the Advance Authorisation and register it with Customs
On approval, DGFT issues an Advance Authorisation with a unique authorisation number and a linked e-BRC/EDI record. Before any import can be cleared duty-free, register the authorisation with the Customs office at the intended port of import — the exemption is not automatically recognised at ports without this registration.
Import inputs and maintain consumption records
Import the permitted inputs against the registered authorisation, filing bills of entry that reference the AA number. Maintain a consumption register mapping imported inputs to the export products manufactured, since this record is required at the time of redemption and in the event of a post-clearance audit.
Execute exports within the obligation period
Ship the finished goods within the export obligation period (standard 18 months, extendable in specific circumstances by filing an extension request with DGFT before expiry, generally against a composition fee). Ensure shipping bills clearly reference the Advance Authorisation number so that exports can be linked back to the authorisation during redemption.
File the Export Obligation Discharge Certificate (EODC) application
Once the export obligation is fulfilled, file for EODC with the jurisdictional Regional Authority, typically within a few months of completing exports. Attach shipping bills, e-BRCs, and the consumption statement reconciling imported inputs against exports. DGFT verifies the figures and, if satisfied, issues the EODC closing the authorisation.
Close out or regularise any shortfall
If the export obligation is not fully discharged within the permitted period (including any extension), regularise the shortfall by paying the customs duty foregone on the unutilised import entitlement, along with applicable interest, before DGFT will close the file. Unresolved shortfalls can trigger recovery proceedings and affect future AA/EPCG applications by the same IEC holder.
Common mistakes to avoid
- Importing inputs before registering the AA with Customs — the duty exemption is only recognised after registration at the specific port of import.
- Using incorrect or outdated SION norms — importing more inputs than the norm allows is treated as excess import and duty is recovered on the excess quantity plus interest.
- Letting the export obligation period lapse without applying for an extension — the request must be filed before expiry, not after.
- Not maintaining a proper input-output consumption register — this is the first document scrutinised during EODC filing and post-clearance audits.
- Applying under the wrong AA category (physical vs. deemed vs. intermediate supply), which can require refiling the entire application.
- Delaying EODC filing after exports are complete — interest on the duty foregone continues to accrue until the certificate is issued.
- Assuming self-declared norms are automatically accepted — ad-hoc norms remain provisional until verified by the Norms Committee.
- Overlooking that IEC, GST, and bank details must stay synchronised across the DGFT profile — mismatches are a frequent cause of processing delay.
Frequently asked questions
Can a deemed export use the Advance Authorisation scheme?
Yes. Supplies to EOUs, SEZ units, EPC project contractors, and eligible government-funded projects qualify as deemed exports and can be supported by an Advance Authorisation for the inputs used in producing those supplies, subject to the specific category rules under the current Foreign Trade Policy.
What is the difference between Advance Authorisation and EPCG?
Advance Authorisation covers duty-free import of raw material and consumable inputs consumed in producing a specific export product. The EPCG (Export Promotion Capital Goods) scheme instead covers duty-free import of capital goods/machinery, against an export obligation calculated as a multiple of duty saved over a period of several years. They serve different stages of the export supply chain and are often used together by manufacturer-exporters.
Is IGST also exempted under Advance Authorisation?
Under the current Foreign Trade Policy framework, AA holders can avail exemption from Basic Customs Duty and IGST on inputs imported against a valid, registered authorisation. GST Compensation Cess exemption is largely moot for most inputs now, since the Compensation Cess itself was withdrawn on nearly all goods under the GST 2.0 rate rationalisation (effective September 2025, with the levy sunsetting by 31 March 2026) — it survives in a different form only for a narrow set of items such as tobacco and pan masala. Exact conditions and any pre-import versus post-import distinctions can change with policy updates, so confirm current treatment with your customs broker or CA before importing.
What if the export product has no SION?
You can apply for a self-declared (ad-hoc) Advance Authorisation based on your own claimed input-output ratios. These applications are subject to verification — typically by a Norms Committee and sometimes a Chartered Engineer certificate — either before issue or as a condition attached to the authorisation, which generally extends processing time compared to SION-based applications.
Can a merchant exporter apply for Advance Authorisation on behalf of a manufacturer?
Yes. A merchant exporter can apply for an Advance Authorisation with a named supporting manufacturer, provided the manufacturer's details, premises, and production capacity are declared in the application. The export obligation and any customs liability remain jointly linked to both parties as per the authorisation conditions.
How long does DGFT typically take to process an AA application?
Applications backed by an existing SION are generally processed faster than applications involving self-declared norms, which require additional Norms Committee review. Actual turnaround varies by Regional Authority workload and the completeness of the application — always track status on the DGFT portal rather than assuming a fixed timeline.
Can the Advance Authorisation be transferred or the inputs sold after import?
No. Inputs imported duty-free under an Advance Authorisation are subject to actual-user conditions and must be used in manufacturing the export product named in the authorisation. Transferring or diverting the imported material is a violation that can trigger duty recovery, penalty, and denial of future authorisations.
What happens if the imported input quantity is less than what SION allows?
There is no penalty for importing less than the SION-permitted quantity — the authorisation simply reflects the ceiling, not a mandatory minimum. However, the export obligation tied to the authorisation must still be fulfilled based on the export product quantity/value committed in the application.
Does the Advance Authorisation scheme apply to import of fuel or catalysts?
Certain consumables, fuel, and catalysts can be covered under an Advance Authorisation where they are established as directly used in producing the export product and are included in the applicable SION or approved ad-hoc norms. Eligibility depends on the specific product category, so confirm against the current SION entry or norms approval before including such items.
Can an Advance Authorisation be clubbed with another authorisation for the same product?
DGFT permits clubbing of two or more Advance Authorisations issued for the same export product under certain conditions, generally to allow consolidated redemption and EODC filing. The clubbing request is filed separately with the Regional Authority and is subject to the authorisations being otherwise valid and un-expired.
What documents are needed to close the authorisation via EODC?
Typically required documents include shipping bills evidencing exports, e-BRCs confirming realisation of export proceeds, the bill of entry for imports made against the authorisation, and a consumption statement reconciling inputs used against exports achieved. Requirements can vary slightly by Regional Authority, so confirm the current checklist before filing.
Is professional assistance recommended for filing an Advance Authorisation application?
Given the norms mapping, HS classification, and export obligation tracking involved, most exporters engage a customs/FTP consultant or Chartered Accountant experienced in DGFT filings — errors in norms selection or obligation planning are costly to correct after the authorisation is issued.
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