What is Advance License Scheme?
Advance Authorisation Scheme allows duty free import of inputs, which are physically incorporated in an export product. In addition to any inputs, packaging material, fuel, oil, catalyst which is consumed / utilized in the process of production of export product, is also be allowed.
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The quantity of inputs allowed for a given product is based on specific norms defined for that export product, which considers the wastage generated in the manufacturing process. DGFT provides a sector-wise list of Standard Input-Output Norms (SION) under which the exporters may choose to apply.
Alternatively, exporters may apply for their own ad-hoc norms in cases where the SION does not suit the exporter.
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The purpose of this is to provide our country a competitive edge over international market. Advance Authorisation Scheme comes with an actual user condition, it can be issued to either manufacturer exporter or merchant exporter tied with a supporting manufacturer.
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Advance Authorisation covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s).
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Kindly consult us to know more about these services, how this works and whether you can avail this scheme.