ADVANCE AUTHORISATION
The scheme was launched in India in 2015. It is a scheme where the import of inputs will be allowed to be made duty-free if they are physically incorporated in a product which is going to be exported. An advance authorisation allows eligible exporters to import inputs, including raw materials, components, intermediates, consumables, or other goods, without payment of customs duties, integrated goods and services tax (IGST), and compensation cess. The total time validity provided for the scheme is 12 months from the date of issue of authorisation. The export should have 15% minimum value addition to the import.
BENEFITS
DUTY EXEMPTION
SIMPLIFIED CUSTOMS PROCEDURE
Importers under the Advance Authorisation scheme are granted exemptions from the payment of basic customs duty, additional customs duty, and special additional duty on the import of inputs or raw materials. Reducing the cost of production and makes the exported goods more price competitive.
The scheme provides for simplified customs procedures for importers, reducing paperwork and administrative burdens. Facilitating faster clearance of goods at customs, leading to shorter lead times in the production process.