Advance Authorisation Scheme: Relaxed Norm for Exporters
Why in the news
The government eased an Advance Authorisation rule for exporters whose goods left before the licence arrived.
Key facts
| Aspect | Earlier | Now |
|---|---|---|
| Shipment before licence | Exemption denied | Allowed if Bill of Entry follows licence |
| Restricted or canalised goods | Not eligible | Need DGFT approval |
About the AA scheme
- Duty-free import of inputs for export production; administered by DGFT under the Commerce Ministry.
- Inputs: raw materials, packaging, fuel, oil, catalysts.
- SION sets permitted input quantities; ad-hoc norms apply if none exist.
- Eligible: manufacturer exporters and merchant exporters tied to supporting manufacturers.
- Physical incorporation: inputs must be used or consumed in the final export.
Impact
- Removes date ambiguity, smooths customs clearance, lifts exporter confidence.
Exam angle
- Administrator: DGFT; SION: Standard Input-Output Norms.