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

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