Advance Authorisation Scheme for MSME: The Advance Authorisation Scheme by the Directorate General of Foreign Trade (DGFT) allows for the duty-free import of inputs to be incorporated physically in products made for exports by manufacturing exporters or merchant exporters tied to helping manufacturers. Also, packaging material, fuel, oil, and catalyst consumed or used in the process of production of export products are allowed under the scheme.
The quantity of inputs one can import for a particular product depends on specific norms defined for that export product. The norms look at the wastage generated in the manufacturing process.
For the same, DGFT provides a sector-wise list of Standard Input-Output Norms (SION) under which the exporters may choose to apply. On the other hand, exporters can also apply for their own ad-hoc norms in cases where the SION does not suit the exporter, according to DGFT.
Before applying for the scheme, importers have to register on the DGFT website and obtain the 10-character alpha-numeric Importer-Exporter Code (IEC) which is the import-export license. Here’s how you can get your IEC. Also, the exporter must have his/her Digital Signature Certificate. Here’s how to register for DSC.
You can apply for the Advance Authorisation (AA) under Services > Advance Authorisation /DFIA > Apply for Advance Authorisation (ANF 4A) on the DGFT portal.
Enter details including your IEC and branch code (branch details are populated from IEC profile), select Advance Authorisation, RCMC details, excise registration number followed by your industrial unit details, your port of registration for the purpose of imports, country from where you have imported free of cost inputs, details of items to be procured indigenously or imported duty-free, products to be exported, details of wastage claimed, and more. Verify the details and sign the application form before submission.
To check your application status, go to Dashboard > Submitted Applications. Select the Type of Scheme as Advance Authorisation (AA) and Type of Sub Scheme as Issuance of Advance Authorisation. In the action section, select Print. You will be able to see the application which you can print.