ADVANCE LICENCE SCHEME

An Advance Authorisation Scheme allows duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed / utilised to obtain export product are also allowed.

Eligibility:

• Manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for duty-free imports of inputs.

• Physical exports (including exports to SEZ)

• Supply of Goods to ultimate exporter holding another Advance Authorisation / Duty Free Import Authorisation.

• Intermediate supplies

• Supply of goods covered under Deemed Exports

• Supply of "stores" on board of foreign going vessel / aircraft subject to condition that there is specific SION in respect of item(s) supplied.

Incentive:

Duty free import of mandatory spares upto 10% of CIF value of Authorisation which are required to be exported / supplied with resultant product are allowed under Advance Authorisation. Advance Authorisations are issued for inputs and export items given under SION.

Advantages:

Advance Authorisations are exempted from payment of:

• Basic customs duty,

• Additional customs duty including Education cess,

• Anti- dumping duty, and Safeguard duty

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*All above subject to EXIM policy in force