Advance Authorization AA scheme consultants

The Advance Authorization Scheme allows import of inputs (raw materials) without any duty payment at Customs. These inputs have to be physically incorporated in the product (after making normal allowance for wastage) which is going to be exported. The exemption of duty is subjected to fulfillment of export obligation.

Duties Exempted under this scheme
- Basic Customs Duty
- Additional Customs Duty
- Education Cess
- Anti-dumping Duty
- Countervailing Duty
- Safeguard Duty
- Transition Product Specific Safeguard Duty wherever applicable
- Integrated Tax
- Compensation Cess

Eligible Modes of Export / Supply Eligible for Advance Authorization
1. Physical export (including export to SEZ)
2. Intermediate supply
3. Supply of goods to EOU / STP / EHTP /BTP
4. Supply of capital goods against EPCG Authorisation
5. Supply of goods to projects financed by multilateral or bilateral Agencies / Funds
6. Supply of goods required for setting up of any mega power project
7. Supply of goods to United Nations or International organization for their official use
8. Supply of goods to nuclear power projects
9. Supply of “stores” on board of foreign going vessel / aircraft

Export Obligation
The export obligation is calculated in terms of the Value Addition achieved by the exported product. Calculation of Value Addition (VA) is as follows:
VA = ((A-B)/B)*100
A = FOB value of export realized / FOR value of supply received
B = CIF value of inputs covered by Authorization, plus value of any other input used on which benefit of Drawback is claimed or intended to be claimed.

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