Procedure for Advance Authorisation Basis Self-Ratification Scheme

Deepak Purohit

Deepak Purohit

Published on: Mar 12, 2026

Megha Makharia

Updated on: Mar 12, 2026

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INTRODUCTION

The Advance Authorization Scheme 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 following four mechanisms:

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

While the scheme is generally open, some categories of products have specific obligations as under:

• Duty-free import of Spices, restricted only for value-addition processes (e.g., crushing, not re-packing)
• A strict pre-import and actual user condition, imposed for fabrics under the Special AA for Articles of Apparel and Clothing Accessories, etc.

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

• No pre-approved, valid SION exists for the proposed export product or
• Pre-approved, valid SION exists, but extra or different inputs are planned to be used in manufacturing process, which are not listed in those official norms.

Applicable Provisions

1. Para 4.03, 4.05(a), 4.09(i), 4.13, 4.14 of Foreign Trade Policy, 2023
2. Para 4.03, 4.39(a), 4.40(a), 4.47(b) of Handbook of Procedures, 2023

Mandatory Requirements

1. Valid Importer-Exporter Code Number (IECN)
2. 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
3. 15% – Minimum value addition is required to be achieved under Advance Authorization
4. Advance Authorization/ material imported under such authorization shall be subject to “Actual User” condition and non-transferrable, even after completion of export obligation
5. Mandatory Certificate from Chartered Engineer in the prescribed format, in case of Advance Authorization (AA), using self-ratification scheme process.

Procedure to be Followed (Step-By-Step)

1. Obtain Importer-Exporter Code (IEC):

   Importer/ Exporter shall obtain valid Importer-Exporter Code 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)

2. Eligibility Check:

   Before applying, exporter shall ensure meeting the essential eligibility criteria for the Self-Ratification Scheme:

   • Authorized Economic Operator (AEO) Certificate
   • Specific Norm for the export products exists or not
   • Intention to use additional inputs in the manufacturing process
   • Items are not included in the “Excluded Items” list as provided below.

   Scheme is Not Available For
   List of Export Products	List of Inputs
   All items covered under Chapter-1 to 24 and Chapter-71of ITC(HS) Classification	All vegetable / edible oils classified under Chapter15 and all types of oilseeds classified under Chapter-12 of ITC (HS)book
   Biotechnology items and related products	All types of cereals classified under Chapter–10 of ITC (HS) book
   SCOMET items	Horn, hoof and any other organ of animal
   	Wild animal products, organs and waste thereof
   	Honey
   	All items with basic customs duty of 30% or more
   	All types of fruits/ nuts/ vegetables classified under Chapter-7 and Chapter-8 of ITC (HS) book
   	Items covered under heading 2515, 2516, 3301, 3302, 3303, 6801 and 6802 of ITC(HS) Classification
   	Items covered under Chapter 50 to 63 of ITC(HS) classification
   	Acetic Anhydride, Ephedrine and Pseudoephedrine
   	Vitamins; Biotechnology items and related products
   	Insecticides, Rodenticides, Fungicides, Herbicides, Anti sprouting products, and plant growth regulators, disinfectants and similar products of all forms, types and grades
   	Waste/Scrap of all types
   	Second hand goods

3. Obtain Advance Authorization:

   Manufacturer Exporters and Merchant Exporters shall submit online in Form ANF 4A for issue of Advance Authorisation or Annual Advance Authorisation via the official DGFT website (https://dgft.gov.in), along with following documents, including consumption data and other details.

   • A Certificate from a Chartered Engineer in Appendix-4K
   • Complete details as per Appendix-4E

   Note:

   • Such engineer, must not been penalized in the last five years under FT (D&R) Act 1992, Customs Act 1962, Central Excise Act 1944, GST Acts and allied acts and rules made there under.
   • Exporter holding AEO Certificate under Common Accreditation Programme of CBEC is eligible to opt for this scheme.
   • Status holder who is a manufacturer cum actual user and holds valid 2-star or above status, and who has already submitted its application for grant of AEO, is also eligible to apply for this scheme subject to following conditions:
     • A copy of numbered and dated acknowledgement of its application for grant of AEO, is to be submitted
     • Status Holder undertakes AEO/Status Holder Compliance.
   • Correct chemical /technical name to be given in the application, in case the export product and/or inputs are given in brand names.
   • Issuance of Advance Authorization :
     • Regional Authority scrutinizes the application against the norms, checks the minimum Value Addition requirement, and issues the Advance Authorization (AA)
     • 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 (AA).
   • Procurement of Inputs and Closure of Advance Authorization
     • 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:

For items subject to the pre-import condition (e.g., fabrics under Special AA), the input must be imported before the commencement of export production.