Advance Authorization Scheme

Context:  Directorate General of Foreign Trade (DGFT) implements the Advance Authorisation Scheme under the Foreign Trade Policy. About Advance Authorisation Scheme:

• It allows duty-free import of inputs, which are physically incorporated in an export product. 
• In addition to any inputs, packaging material, fuel, oil, and catalyst which is consumed / utilized in the process of production of export products, is also allowed.
• Eligibility of Inputs: Determined by Sector-specific Norms Committees based on input-output norms.
• Prerequisites for Applying:
  • To apply for an Advance Authorisation scheme, an Import-Export Code (IEC) is required.
  • Other prerequisites are mentioned in the Chapter 4 of Foreign Trade Policy and Handbook of Procedures.

About Directorate General of Foreign Trade (DGFT): It is an attached office of the Ministry of Commerce and Industry and is headed by Director General of Foreign Trade. Functions:  Regulation and promotion of foreign trade through regulation. Increasing of exports, DGFT has since been assigned the role of “facilitator”. issues licenses to exporters and monitors their corresponding obligations Headquarters: New Delhi

News Source: PIB