Advance Authorisation: importing inputs duty-free for exports

This guide is for manufacturer exporters, and merchant exporters tied to a supporting manufacturer, who import raw materials or components for their export products. It explains how Advance Authorisation (AA) lets you import those inputs without paying duty, what you commit to in return, and how to close the authorisation cleanly.

What Advance Authorisation does

Under Chapter 4 of the Foreign Trade Policy (FTP) 2023, an AA allows duty-free import of inputs that are physically incorporated in the export product, and of fuel, oil and catalysts consumed in making it, as allowed by the applicable norms. The imports are exempt from basic customs duty, anti-dumping, countervailing and safeguard duties, and also from IGST and compensation cess, as set out in paragraph 4.14 of the FTP and the related customs notification.

In return you accept an export obligation (EO): you must export a set quantity and value of the finished product within a fixed period. You must also achieve a minimum value addition, normally 15%, with different figures for some products listed in the policy.

Variants include the Annual Advance Authorisation (for exporters with a track record, based on past exports), AA for deemed exports, and a special AA for apparel and clothing issued on a self-declaration basis.

Norms: SION and ad hoc norms

The quantity of inputs you can import per unit of export is set by input-output norms.

• SION (Standard Input Output Norms): published norms for thousands of products. If one exists for your product, your AA is issued against it.
• Ad hoc norms: if there is no SION, or you need inputs not covered, you apply on the basis of your own declared norms, backed by a Chartered Engineer's certificate. The AA is issued, and the sector Norms Committee at DGFT later examines and fixes the norm. If it fixes a lower quantity than you declared, you may have to pay duty on the excess you imported.
• Self-ratification: Authorised Economic Operators and 2-star and above status holders can self-ratify their norms under the FTP 2023 scheme, subject to its conditions.

DGFT reported in April 2026 that it had added members to the Norms Committees and moved to a fixed fortnightly meeting cycle to clear pending ad hoc norm cases.

How to get and use an AA

1. Check eligibility and norms. Confirm your export product, the SION (or prepare your ad hoc norms) and any input with a pre-import condition or other restriction.
2. Apply online. File the application in form ANF 4A on the DGFT portal with your digital signature, export product details, the input list and quantities, and pay the fee online. The application goes to your DGFT regional authority.
3. Register the AA at the port. Before the first import, register the authorisation with customs at the port of import and execute the bond (with bank guarantee where required) that customs asks for.
4. Import within the validity. Imports must be made within the authorisation's import validity. Keep import and consumption records input by input.
5. Export against the AA. Mention the AA number on every shipping bill you want counted towards the EO. Exports without this link are generally not counted.
6. Realise the proceeds. The EO is treated as fulfilled only when the export proceeds are realised, shown through e-BRCs.
7. Apply for redemption. File for the Export Obligation Discharge Certificate (EODC) in form ANF 4F on the DGFT portal with shipping bill, e-BRC and consumption details. Once DGFT issues the EODC, customs cancels your bond.

Export obligation period

The general EO period for an AA is 18 months from the date of issue. You can apply for extensions on payment of a composition fee under the Handbook of Procedures; beyond that, relief needs the Policy Relaxation Committee. Shorter periods apply to some sectors, such as gems and jewellery.

In March 2026 DGFT Public Notice 51/2025-26 automatically extended to 31 August 2026 all AA and EPCG export obligation periods that were due to expire between 1 March and 31 May 2026, without an application or fee, because of disruption to shipping routes. Check whether any later relief applies to your authorisation before you assume a deadline.

Actual user condition

The AA and the inputs imported under it are subject to the actual user condition. You must use the inputs in your own (or your named supporting manufacturer's) production, and you cannot sell or transfer the authorisation or the imported inputs, even after the EO is complete. You may dispose of the finished products once the EO is met. Diverting duty-free inputs to the domestic market is treated as a serious violation.

AA, RoDTEP and drawback

• RoDTEP: exports made under an AA can claim RoDTEP at the rates in Appendix 4RE (not 4R). This was restored from 1 June 2025 after a gap.
• Drawback: you cannot claim All Industry Rate drawback on exports made against an AA, since the inputs were imported duty-free. A special drawback rate applies only in narrow cases such as the special AA for apparel.
• GST: discuss with your GST adviser whether to export under LUT or with IGST payment, given that your inputs came in without IGST.

Common mistakes

• Shipping bills not linked to the AA. The EO is counted only from shipping bills that declare the AA.
• Letting the EO period lapse. In default you pay the customs duty saved on unused inputs plus interest, and the authorisation can be placed in the denied entity list. Track the deadline on the policies and licences dashboard.
• Weak consumption records. Redemption depends on showing that the imported inputs went into the exported goods in line with the norms.
• Unrealised exports. An unpaid shipment does not count towards the EO. Consider ECGC cover for credit sales.
• Delaying redemption. Open AAs with old bonds attract notices from DGFT and customs. Apply for the EODC as soon as you can.

Related on Exportsmitra

• RoDTEP: how the scheme works and how to claim it
• EPCG: importing capital goods at zero duty against an export obligation
• Duty drawback: All Industry Rates and brand rates
• e-BRC: the electronic bank realisation certificate
• HS Code Finder

Sources

• DGFT portal: Foreign Trade Policy 2023, Handbook of Procedures and ANF forms
• DGFT: public notices amending the Handbook of Procedures and SION
• PIB: Foreign Trade Policy 2023 announced (self-ratification, amnesty, special AA for apparel)
• PIB: export obligation periods for AA and EPCG extended to 31 August 2026
• PIB: reforms to DGFT Norms Committees for faster AA decisions (April 2026)
• PIB: RoDTEP restored for AA, SEZ and EOU exports from 1 June 2025

Last checked 1 October 2026. Rules change: confirm with your DGFT regional authority or customs broker before you act.