Step 1 — Check Eligibility
You are eligible if you:
- Manufacture export goods
- Provide services that require inputs (limited categories)
- Are a merchant exporter tied with a supporting manufacturer
The scheme applies to:
- Physical exports
- Deemed exports
- Intermediate supplies
Products covered under SION (Standard Input Output Norms) or self-declared norms are eligible.
Step 2 — Understand Export Obligation (EO)
Under Advance Authorisation, you must:
- Export six times (6x) of duty saved value or as per SION norms
- Complete exports within 18 months from issuance (extendable)
- Maintain value addition as prescribed
Step 3 — Gather Required Documents
General documents:
- IEC
- GST Registration
- PAN
- Exporter profile on DGFT
- Digital Signature Certificate (DSC)
- Manufacturer’s process details
- Chartered Engineer Certificate
- Technical specifications of raw materials & finished goods
- Proforma invoice of inputs
- Past export performance (if applicable)
Additional documents for self-declaration cases:
- Consumption ratio justification
- Production flowchart
- Calculation of wastage norms
Step 4 — Register on DGFT Portal
- Visit https://dgft.gov.in
- Create user login
- Link IEC
- Add DSC
- Update exporter profile with factory address & bank details
Step 5 — File Application for Advance Authorisation
- Go to: Services → Advance Authorisation → Apply
- Choose between:
- SION-based application
- Self-declaration
- Adhoc norms
- Fill ANF 4A form with details:
- Inputs to be imported
- Finished goods to be exported
- Quantity and value calculation
- Port of registration
- Upload mandatory documents
- Pay DGFT application fee
- Submit for processing
DGFT will scrutinize the consumption ratio and value addition at this stage.
Step 6 — DGFT Review & Grant of Advance Authorisation
DGFT may ask for:
- Technical clarification regarding inputs
- Consumption norms
- Manufacturing process
- Supporting manufacturer details
Once approved, DGFT issues the Advance Authorisation License, containing:
- Import quantity allowed
- Duty exemptions
- Export obligation period
- Input-output norms
This license is used at Customs to clear imported raw materials duty-free.
Step 7 — Import Inputs Duty-Free
At import stage:
- File Bill of Entry mentioning Advance Authorisation details
- Submit license copy & bond/undertaking (if required)
- Clear raw materials without paying customs duties
- Maintain stock registers for audit
Step 8 — Manufacture and Export Finished Goods
Ensure that:
- Inputs imported are actually consumed in production
- Exports are made within EO period
- Shipping bills show correct HS code & license number
- e-BRC values match export documentation
Maintain consumption and production records to avoid disputes later.
Step 9 — Fulfill Export Obligation
You must:
- Export required quantity/value
- Maintain value addition
- Track EO progress through DGFT portal
For deemed exports, obtain supporting documentation like CT-3 forms, ARE-3, certificates from project authority, etc.
Step 10 — Apply for EODC (Export Obligation Discharge Certificate)
After completing EO:
- Go to DGFT portal → EODC/Redemption
- File ANF 4F form
- Upload required documents:
- Shipping bills
- e-BRC
- Consumption certificate from independent Chartered Engineer
- Export summary
- Proof of input consumption
- Valid import/export licenses
- Submit online
DGFT will review documents and issue EODC.
Step 11 — Redemption & Closure
When EODC is issued:
- DGFT closes Advance Authorisation
- Customs bond/BG (if any) is released
- Export obligation is officially fulfilled
Keep EODC safely — it may be required during audits.
Documents Required (Summary)
- IEC, GST, PAN
- DSC
- Proforma invoice
- SION norms or self-declared norms
- Technical specifications
- Manufacturing flowchart
- Shipping bills
- e-BRC
- Chartered Engineer consumption certificate
- Export summary sheet
Timeline Overview
| Stage | Estimated Time |
|---|---|
| Application filing | 1–3 days |
| DGFT approval | 15–45 days |
| Import of raw materials | Anytime after approval |
| Export obligation period | 18 months (extendable) |
| EODC processing | 30–90 days |
Common Mistakes to Avoid
- Incorrect consumption norms
- Misclassification of HS codes
- Late fulfillment of export obligation
- Inadequate stock/production records
- Uploading incorrect documents for EODC
- Using imported inputs for non-authorised goods
Benefits of Advance Authorisation Scheme
- Zero customs duty on raw materials
- Reduced production cost
- Enhanced export competitiveness
- Flexible norms (SION, self-declared, adhoc)
- Faster approvals through online DGFT system
Saving Mantra — Advance Authorisation Support (CTA)
We help exporters with:
- Eligibility analysis
- SION/self-declaration preparation
- Filing ANF 4A application
- DGFT query response
- Import documentation support
- Export obligation tracking
- EODC filing and closure
CTA for WordPress:<a href="/contact">Need Advance Authorisation Support? Contact Saving Mantra</a>
FAQ
Q: What is covered under duty exemption?
A: BCD, IGST, Safeguard Duty, Anti-dumping Duty, and other duties listed in the FTP.
Q: Can we transfer imported inputs?
A: No. Inputs must be used only for authorized manufacturing.
Q: Can we apply for extension of EO period?
A: Yes, DGFT allows extensions with appropriate justification.
Q: Are job workers allowed?
A: Yes, but exporters must maintain consumption records and responsibility.
Excerpt (Short WordPress Summary)
A complete step-by-step guide to the Advance Authorisation Scheme, covering eligibility, documentation, DGFT application, duty-free imports, export obligation, and EODC filing.
Disclaimer (Add at end of post)
Disclaimer: This article is for informational purposes only and should not be considered legal, financial, or professional advice. DGFT policies, SION norms, and Advance Authorisation rules may change through official notifications. Exporters should verify the latest guidelines or consult a qualified DGFT professional before making decisions. Saving Mantra does not accept responsibility for any errors, omissions, or outcomes based on this information.