Advance Authorization An Advance Authorization is issued to allow 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 / utilized to obtain export product, may also be allowed. DGFT, by means of Public Notice, may exclude any product(s) from purview of Advance Authorization. Duty free import of mandatory spares up to 10% of CIF value of Authorization which are required to be exported / supplied with resultant product are allowed under Advance Authorization.
Advance Authorizations are issued for inputs and export items given under SION. These can also be issued on the basis of Adhoc norms or self declared norms as per para 4.7 of HBP v1. Advance Authorization can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for: i) Physical exports (including exports to SEZ); and / or ii) Intermediate supplies; and /or iii) supply of ‘stores’ on board of foreign going vessel / aircraft subject to condition that there is specific SION in respect of item(s) supplied. In addition, in respect of supply of goods to specified projects mentioned below in FTP, an Advance Authorization can also be availed by sub-contractor to such project provided name of sub contractor(s) appears in main contract. k). Drawback allowed shall be mentioned in Authorization
