Advance Authorization Consultant
Import the raw materials and inputs you need for export production without paying customs duty upfront — we handle the licence and obligation discharge.
What Is Advance Authorization?
The Advance Authorization scheme allows exporters to import raw materials, components, and other inputs that are physically incorporated into an export product, without paying basic customs duty, IGST, or other applicable duties — provided those inputs are actually used to manufacture goods that are subsequently exported.
The scheme is built around Standard Input Output Norms (SION) — pre-defined ratios that specify how much of a given input is allowed, duty-free, per unit of export output. Where SION exists for your product, the application process is relatively straightforward. Where it doesn't, you'll need to apply for an Ad-hoc Norm, which involves a more detailed technical justification and typically a longer processing timeline.
Unlike EPCG, which deals with capital goods and a multi-year obligation, Advance Authorization is transaction-linked: you import the input, manufacture the export product, and export it — usually within 18 months — at which point your obligation under that specific licence is discharged. This shorter, output-specific cycle makes Advance Authorization attractive for exporters with predictable input-to-output ratios, but it also means tighter, more frequent compliance tracking compared to EPCG.
Soumya Enterprises manages the full Advance Authorization lifecycle — checking whether your inputs fall under an existing SION or require an ad-hoc norm, preparing and filing the licence application, supporting duty-free imports against the licence, and preparing the export obligation discharge (EODC) once your export commitment is met.
Key Benefits
Zero Duty on Raw Materials
Avoid basic customs duty, IGST and other applicable duties on inputs physically used in your export product.
SION-Based Predictability
Where Standard Input Output Norms exist for your product, the input-to-output ratio is pre-defined, simplifying both application and compliance.
Shorter Obligation Cycle
Export obligation is typically discharged within 18 months, a much shorter commitment than capital-goods schemes like EPCG.
Replenishment Option
In certain cases, exporters who have already used duty-paid inputs can claim replenishment under the scheme.
Supports Both Manufacturers & Merchant Exporters
Available to manufacturer exporters as well as merchant exporters tied to a supporting manufacturer.
Improves Cost Competitiveness
Removing duty cost on inputs directly improves your pricing competitiveness in export markets.
Our Process
Input-Output Analysis
We map your raw material requirements against existing SION, or prepare the technical case for an ad-hoc norm if none exists.
Licence Application
We file the Advance Authorization application with DGFT, including all required technical and financial documentation.
Duty-Free Import
We support your import documentation to ensure customs clearance proceeds correctly against the authorization.
Production & Export Tracking
We help you maintain the records linking imported inputs to exported output, required for obligation discharge.
Obligation Discharge (EODC)
Once your export obligation is met, we prepare and file for Export Obligation Discharge Certificate to formally close the licence.
Common Mistakes to Avoid
Most delays and lost claims come down to a handful of avoidable errors. Here's what we see most often:
- Applying under a generic SION when a more specific, more favourable norm actually applies to your product.
- Poor production and consumption record-keeping, which complicates obligation discharge later.
- Missing the 18-month export obligation window without applying for an extension in time.
- Treating Advance Authorization and EPCG as interchangeable, when they cover different categories of duty-free import.
Frequently Asked Questions
What inputs qualify under Advance Authorization?
Raw materials, components, consumables and other inputs that are physically incorporated into the exported product (allowing for normal manufacturing wastage) typically qualify.
What is SION and why does it matter?
Standard Input Output Norms define the standard ratio of duty-free input allowed per unit of export output for a given product — where SION exists, your application is simpler and faster.
What if my product doesn't have a defined SION?
You can apply for an Ad-hoc Norm, which requires a more detailed technical justification of your input-output ratio and typically takes longer to process.
How long do I have to fulfil my export obligation?
The standard export obligation period under Advance Authorization is 18 months from the date of issue, though extensions may be available in certain cases.
Can I use Advance Authorization and EPCG together?
Yes — Advance Authorization addresses duty-free raw material imports while EPCG addresses duty-free capital goods imports, and many exporters use both as part of an integrated cost strategy.
What happens after I complete my exports?
Once your export obligation is fulfilled, you apply for an Export Obligation Discharge Certificate (EODC) to formally close out the authorization with DGFT.
Can Advance Authorization be issued before an export order is confirmed?
In many cases, authorization can be obtained based on your production plan, though specific conditions and documentation requirements apply depending on the category.
What happens to unused imported inputs after export obligation is met?
Any surplus duty-free inputs typically need to be accounted for under DGFT rules — we help you handle this correctly during obligation discharge.
Why Choose Soumya Enterprises?
SION Expertise: We're familiar with SION schedules across multiple product categories and know when an ad-hoc norm application is the better route.
Input-Output Documentation Discipline: We help you set up the production and consumption records DGFT expects to see at the time of obligation discharge.
Faster EODC Closure: Because we track your obligation from day one, EODC filing is typically a smooth formality rather than a documentation scramble.
Combined Scheme Strategy: Where it makes sense, we help you structure Advance Authorization alongside EPCG and RoDTEP for maximum overall benefit.
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