Advance Authorization Scheme


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

Advance Authorization Scheme (AAS) is one of the incentive schemes provided by Indian Government thorough its government agency called DGFT – Director General of Foreign Trade.
Under Advance authorization Scheme AAS, exporter can import raw-materials and related inputs under 100% duty exemption schemes. The importer has to approach DGFT who is the licensing authority under this category. Government fixes value addition as per the standard input-output norms. Once you fulfills the export obligation with the licensing authority, you can sell the manufactured products in domestic market.
Under this scheme, duty free import of inputs are allowed, that are physically incorporated in the export product (after making normal allowance for wastage) with minimum 15% value addition. Advance Authorization (AA) is issued for inputs in relation to resultant products as per SION or on the basis of self declaration, as per procedures of FTP. AA normally have a validity period of 12 months for the purpose of making imports  and a period of 18 months for fulfillment of Export Obligation (EO) from the date of issue. AA is issued either to a manufacturer exporter or merchant exporter tied to a supporting manufacturer(s).
Foreign Trade Policy 2015-20 and other schemes provide promotional measures to boost India’s exports with the objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field.


Friday, 04th Sep 2015, 09:23:29 AM

Add Your Comment:
Post Comment