Advance Authorisation Scheme: Self-Declaration Procedure

Deepak Purohit

Deepak Purohit

Published on: Mar 16, 2026

Megha Makharia

Updated on: Mar 16, 2026

★★★★★(1 Rating)

INTRODUCTION

The Advance Authorization is a pivotal duty exemption measure under India’s Foreign Trade Policy (FTP) 2023, designed to make Indian exports globally competitive. Its primary status is to grant Duty Exemption covering Basic Customs Duty, IGST, Compensation Cess, and other duties on the import or domestic procurement of inputs that are physically incorporated into the export product, including normal wastage. The scheme is available to both Manufacturer Exporters and Merchant Exporters tied to a Supporting Manufacturer. This facility ensures exporters can access raw materials and intermediates duty-free, thereby neutralizing the tax incidence on inputs used for exports.

This Authorization is issued for inputs based on four primary mechanisms:

As per Standard Input Output Norms (SION) notified by the authority
On the basis of Self-Declaration
Applicant-specific fixation of norms by the Norms Committee (NC)
On the basis of the Self-Ratification Scheme (for AEO status holders).

Eligible exporters can apply for Advance Authorization (AA) Scheme, using Self-Declaration scheme process in the following situations :

Where SION has not been notified or where the exporter intends to use additional inputs not listed in existing SION
For pharmaceutical products manufactured through a Non-Infringing (NI) process, the procedure requires a specific Chartered Engineer (Chemical) certificate as per Appendix 4L and follow Para 4.18 of Handbook of Procedures.

Applicable Provisions

Para 4.03, and 4.11 of Foreign Trade Policy (FTP), 2023
Para 4.04, 4.07 of Handbook of Procedures (HBP), 2023

Mandatory Requirements

Valid Importer-Exporter Code (IEC)
Advance Authorization shall be issued for:
- Physical Export (including export to SEZ)
- Intermediate supply
- Supply of goods to specified categories such as nuclear projects, mega power projects, projects financed by multilateral or bilateral agencies/funds, etc.
- Supply of ‘stores’ on board of foreign going vessel / aircraft
15% – Minimum value addition is required to be achieved under Advance Authorization
Advance Authorization/ material imported under such authorization shall be subject to “Actual User” condition and non-transferrable, even after completion of export obligation
Provide production and consumption data for the past 3 FY (certified by a CA/Chartered Engineer) if the applicant seeks repeat authorizations on a self-declaration basis.

Procedure to be Followed (Step-By-Step)

Obtain Importer-Exporter Code (IEC)
Importer/ Exporter shall obtain valid Importer-Exporter Code (IEC) in case they do not already possess the same.

(Please refer Article on Import-Exporter Code – https://www.lawrbit.com/article/importer-exporter-code/, for detailed information)

Eligibility Check

Before applying exporter shall ensure meeting the essential eligibility criteria for Self-Declaration scheme:

Submit an undertaking to abide by the final decision of the Norms Committee (NC) regarding wastage and input-output ratios
Items are not included in the “Excluded Items” list as provided below.

List of Export Products	List of Inputs
Scheme is Not Available For
Perfumes, perfumery compounds and various feed ingredients containing vitamins	All vegetable or edible oils classified under Chapter 15 and all types of oilseeds classified under Chapter- 12 of ITC (HS) book
	All types of cereals classified under Chapter–10 of ITC (HS) book
	All Spices other than light black pepper (light berries) having a basic customs duty of more than 30%, classified under Chapter-9 and 12 of ITC (HS)book
	All types of fruits/ vegetables having a basic customs duty of more than 30%, classified under Chapter-7 and Chapter-8 of ITC(HS) book
	Horn, Hoof and any other organ of animal
	Honey
	Vitamins except for use in pharmaceutical industry
	Rough Granite
	Rough Marble Blocks/Slabs
	All items with basic customs duty of 30% or more

Note: Where export and/or import of biotechnology items and related products are involved, Authorisation on self-declaration basis shall be issued by RA, only on submission of a “No Objection Certificate” from Department of Biotechnology.

Obtain Advance Authorization (Form ANF 4A)
Manufacturer Exporters or Merchant Exporters shall submit the application online in Form ANF 4A via DGFT website (https://dgft.gov.in) along with the following:
- Complete details as per Appendix-4E
- Production and Consumption data of the manufacturer/ supporting manufacturer of the preceding 3 FY, duly certified by the CA/ CMA/ Jurisdictional Excise Authority.
Issuance of Advance Authorisation:
- Regional Authority scrutinizes the application for completeness and issues the Advance Authorisation on a provisional basis.
- Authorization shall be valid for 12 months from the date of issue of Authorisation for import of Advance Authorisation and 18 months from the date of issue of Authorisation for fulfilment of export obligation under Advance Authorization Scheme.
Procurement of Inputs and Closure of Advance Authorisation
- The holder must execute the Import and Procurement of Inputs duty-free as permitted. Alternatively, inputs can be procured domestically against an Invalidation Letter or an Advance Release Order (ARO) issued by the Regional Authority.
- For the Closure of Advance Authorisation, the AA holder is required to submit an online application in Form ANF 4F via the official DGFT website (https://dgft.gov.in) to obtain the Export Obligation Discharge Certificate (EODC) from the Regional Authority.

Note:
Once the AA is issued, the RA forwards the case to the relevant Norms Committee at DGFT HQ for final fixation.

Procedure for Advance Authorisation Basis Self-Declaration								
INTRODUCTION
The Advance Authorization is a pivotal duty exemption measure under India's Foreign Trade Policy (FTP) 2023, designed to make Indian exports globally competitive. Its primary status is to grant Duty Exemption covering Basic Customs Duty, IGST, Compensation Cess, and other duties on the import or domestic procurement of inputs that are physically incorporated into the export product, including normal wastage. The scheme is available to both Manufacturer Exporters and Merchant Exporters tied to a Supporting Manufacturer. This facility ensures exporters can access raw materials and intermediates duty-free, thereby neutralizing the tax incidence on inputs used for exports.
This Authorization is issued for inputs based on four primary mechanisms:

As per Standard Input Output Norms (SION) notified by the authority
        On the basis of Self-Declaration
        Applicant-specific fixation of norms by the Norms Committee (NC)
        On the basis of the Self-Ratification Scheme (for AEO status holders).

Eligible exporters can apply for Advance Authorization (AA) Scheme, using Self-Declaration scheme process in the following situations :

Where SION has not been notified or where the exporter intends to use additional inputs not listed in existing SION
        For pharmaceutical products manufactured through a Non-Infringing (NI) process, the procedure requires a specific Chartered Engineer (Chemical) certificate as per Appendix 4L and follow Para 4.18 of Handbook of Procedures.

Applicable Provisions

Para 4.03, and 4.11 of Foreign Trade Policy (FTP), 2023
    Para 4.04, 4.07 of Handbook of Procedures (HBP), 2023

Mandatory Requirements

Valid Importer-Exporter Code (IEC)
        Advance Authorization shall be issued for:
            
                Physical Export (including export to SEZ)
                Intermediate supply
                Supply of goods to specified categories such as nuclear projects, mega power projects, projects financed by multilateral or bilateral agencies/funds, etc.
                Supply of ‘stores’ on board of foreign going vessel / aircraft
            
        
        15% - Minimum value addition is required to be achieved under Advance Authorization
        Advance Authorization/ material imported under such authorization shall be subject to “Actual User” condition and non-transferrable, even after completion of export obligation
        Provide production and consumption data for the past 3 FY (certified by a CA/Chartered Engineer) if the applicant seeks repeat authorizations on a self-declaration basis.

Procedure to be Followed (Step-By-Step)

Obtain Importer-Exporter Code (IEC)
        Importer/ Exporter shall obtain valid Importer-Exporter Code (IEC) in case they do not already possess the same.
        (Please refer Article on Import-Exporter Code - https://www.lawrbit.com/article/importer-exporter-code/, for detailed information)
    
    
        Eligibility Check
        Before applying exporter shall ensure meeting the essential eligibility criteria for Self-Declaration scheme:
        
            Submit an undertaking to abide by the final decision of the Norms Committee (NC) regarding wastage and input-output ratios
            Items are not included in the "Excluded Items" list as provided below.
        
        
            
                
                Scheme is Not Available For
                
            
                List of Export Products
                List of Inputs
            
                
                Perfumes, perfumery compounds and various feed ingredients containing vitamins
                All vegetable or edible oils classified under Chapter 15 and all types of oilseeds classified under Chapter- 12 of ITC (HS) book
                
                
                    
                    All types of cereals classified under Chapter–10 of ITC (HS) book
                
                
                
                All Spices other than light black pepper (light berries) having a basic customs duty of more than 30%, classified under Chapter-9 and 12 of ITC (HS)book
                
                
                
                All types of fruits/ vegetables having a basic customs duty of more than 30%, classified under Chapter-7 and Chapter-8 of ITC(HS) book
                
                
                
                Horn, Hoof and any other organ of animal
                
                
                
                Honey
                
                
                
                Vitamins except for use in pharmaceutical industry
                
                
                
                Rough Granite
                
                
                
                Rough Marble Blocks/Slabs
                
                
                
                All items with basic customs duty of 30% or more
                
            
        
        Note: Where export and/or import of biotechnology items and related products are involved, Authorisation on self-declaration basis shall be issued by RA, only on submission of a “No Objection Certificate” from Department of Biotechnology.
    
    
        Obtain Advance Authorization (Form ANF 4A)
        Manufacturer Exporters or Merchant Exporters shall submit the application online in Form ANF 4A via DGFT website (https://dgft.gov.in) along with the following:
        
            Complete details as per Appendix-4E
            Production and Consumption data of the manufacturer/ supporting manufacturer of the preceding 3 FY, duly certified by the CA/ CMA/ Jurisdictional Excise Authority.
        
    
    
        Issuance of Advance Authorisation:
        
            Regional Authority scrutinizes the application for completeness and issues the Advance Authorisation on a provisional basis.
            Authorization shall be valid for 12 months from the date of issue of Authorisation for import of Advance Authorisation and 18 months from the date of issue of Authorisation for fulfilment of export obligation under Advance Authorization Scheme. 
        
    
    
        Procurement of Inputs and Closure of Advance Authorisation
        
            The holder must execute the Import and Procurement of Inputs duty-free as permitted. Alternatively, inputs can be procured domestically against an Invalidation Letter or an Advance Release Order (ARO) issued by the Regional Authority.
            For the Closure of Advance Authorisation, the AA holder is required to submit an online application in Form ANF 4F via the official DGFT website (https://dgft.gov.in) to obtain the Export Obligation Discharge Certificate (EODC) from the Regional Authority.

Note:Once the AA is issued, the RA forwards the case to the relevant Norms Committee at DGFT HQ for final fixation.

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Advance Authorization
          
        
        
            Advance Authorisation Scheme is a scheme which allows duty free import of inputs, which are physically incorporated in an export product. In addition to any inputs, packaging material, fuel, oil, catalyst which is consumed / utilized in the process of production of export product, is also be allowed.

Manufacturer Exporters
          
        
        
            Manufacturer Exporter means a person who exports goods manufactured by him or intends to export such goods.

Merchant Exporters
          
        
        
            Merchant Exporter means a person engaged in trading activity and exporting or in tending to export goods.

SION
          
        
        
            SION means Standard Input Output Norms notified by Directorate General of Foreign Trade.

Norms Committee (NC)
          
        
        
            Norms Committee (NC) means the Directorate General of Foreign Trade for approval of adhoc input –output norms in cases where SION does not exist and recommend SION to be notified in DGFT.NormsCommittee means Standard Input Output Norms notified by Directorate General of Foreign Trade.

Importer-Exporter Code Number
          
        
        
            Importer-Exporter Code Number means the Code Number granted by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General.

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EXIM

Procedure for Advance Authorisation Basis Self-Declaration

Deepak Purohit

Megha Makharia

INTRODUCTION

Applicable Provisions

Mandatory Requirements

Procedure to be Followed (Step-By-Step)

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