1. Advance Authorisation is issued to allow duty free import of input, which is physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, catalyst which is consumed / utilized in the process of production of export product, may also be allowed.
2. Advance Authorisation is issued for inputs in relation to resultant product, on the following basis:
   1. As per Standard Input Output Norms (SION) notified (available in Hand Book of Procedures);

      OR

   2. On the basis of self declaration as per paragraph 4.07 of Handbook of Procedures.

      OR

   3. Applicant specific prior fixation of norm by the Norms Committee.

      OR

   4. On the basis of Self Ratification Scheme in terms of Para 4.07A of Foreign Trade Policy.

      OR

Advance Authorisation for Spices

Duty free import of spices covered under Chapter-9 of ITC (HS) shall be permitted only for activities like crushing/grinding/sterilization/manufacture of oils or oleoresins. Authorisation shall not be available for simply cleaning, grading, re-packing etc.

A Special Advance Authorisation Scheme for export of Articles of Apparel and Clothing accessories.

Duty free import of fabric under ‘Special Advance Authorisation Scheme for export of Articles of Apparel and Clothing Accessories’ shall be allowed, as per Customs Notification issued for this scheme, for export of items covered under Chapter 61 and 62 of ITC(HS) Classification of Export and Import, subject to the following terms and conditions:

1. The authorisation shall be issued based on Standard Input Output Norms (SION) or prior fixation of norms by Norms Committee.
2. The authorisation shall be issued for the import of relevant fabrics including inter lining only as input. No other input, packing material, fuel, oil and catalyst shall be allowed for import under this authorisation.
3. Exporters shall be eligible for All Industry Rate of Duty Drawback, for non-fabric inputs, as determined by Central Government for this scheme. For the purpose of value addition norm of Para 4.08 of FTP, the value of any other input used on which benefit of Drawback is claimed or intended to be claimed shall be equal to 22% of the FOB value of export realised. Minimum value addition shall be as per Para 4.09 of FTP.
4. Where the exporter desires to claim drawback determined and fixed by Jurisdictional Customs Authority (brand rate), he shall follow Para 4.15 of FTP regarding declarations to be made in application for the authorisation and make export under claim for brand rate. In such cases the value addition shall be as per Para 4.08 of FTP. Minimum value addition shall be as per Para 4.09 of FTP.
5. Authorisation, and the fabric imported, shall be subject to actual user condition. The same shall be non-transferable even after completion of export obligation. However fabric imported may be transferred for job work in terms of provisions of GST Acts under intimation to the Customs authority at the port of registration (excluding to units located in areas eligible for area based exemption from Central Excise Duty). Invalidation of the Authorisation shall not be permitted.
6. The fabric imported shall be subject to pre-import condition and it shall be physically incorporated in the export product (making normal allowance for wastage). Only Physical exports shall fulfill the export obligation.
7. Provisions of paragraphs 4.02, 4.05(a), 4.13(i), 4.13(ii), 4.14, 4.15, 4.17, 4.19, 4.21(i), 4.21(ii), 4.21 (iii), 4.21(v), 4.22(i), and 4.24   of Foreign Trade Policy shall be applicable in so far as they are not inconsistent with this scheme.

Eligible Applicant / Export / Supply

1. Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer.
2. Advance Authorisation for pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated in paragraph 4.18 of Handbook of Procedures) shall be issued to manufacturer exporter only.
3. Advance Authorisation shall be issued for:
   1. Physical export (including export to SEZ);
   2. Intermediate supply; and/or
   3. Supply of goods to the categories mentioned in paragraph 7.02 (b), (c),   (e), (f), (g) and (h) of this FTP.
   4. Supply of ‘stores’ on board of foreign going vessel / aircraft, subject to  condition that there is specific Standard Input Output Norms in respect of item supplied.

Advance Authorisation for Annual Requirement

1. Advance Authorisation for Annual Requirement shall only be issued for items notified i n Standard Input Output Norms (SION), and it shall not be available in case of adhoc norms under paragraph 4.03 (b)(ii) of FTP.
2. Advance Authorisation for Annual Requirement shall also not be available in respect of SION where any item of input appears in Appendix 4-J.

Eligibility Condition to obtain Advance Authorisation for Annual Requirement

1. Exporters having past export performance (in at least preceding two financial years) shall be entitled for Advance Authorisation for Annual requirement.
2. Entitlement in terms of CIF value of imports shall be up to 300% of the FOB value of physical export and / or FOR value of deemed export in preceding financial year or Rs 1 crore, whichever is higher.

A Self Ratification Scheme

1. Where there is no SION/valid Adhoc Norms for an export product and where SION has been notified but exporter intends to use additional inputs in the manufacturing process, eligible exporter can apply for an Advance Authorisation under this scheme on self declaration and self ratification basis. RA may issue Advance Authorisations and such cases need not be referred to Norms Committees for ratification of norms. Application under this scheme shall be made along with a Certificate from Chartered Engineer in the prescribed format.
2. A Certificate from a Chartered Engineer who has been not been penalised in the last five years under FT(D&R) Act 1992, Customs Act 1962, Central Excise Act 1944, GST Acts and allied acts and rules made there under shall only be accepted for grant of Authorisation under this scheme.
3. Detailed procedure for administering the scheme shall be prescribed in the Handbook of Procedures.
4. An exporter (manufacturer or merchant) who holds AEO Certificate under Common Accreditation Programme of CBEC is eligible to opt for this scheme.
5. The scheme shall not be available for the following export products.
   1. All items covered under Chapter-1 to 24 and Chapter-71 of ITC(HS)Classification;
   2. Biotechnology items and related products; and
   3. SCOMET items.
6. The scheme shall not be available for the following inputs.
   1. All vegetable / edible oils classified under Chapter-15 and all types of oilseeds classified under Chapter-12 of ITC (HS) book;
   2. All types of cereals classified under Chapter–10 of ITC (HS) book;
   3. Horn, hoof and any other organ of animal;
   4. Wild animal products, organs and waste thereof;
   5. Honey;
   6. All items with basic customs duty of 30% or more;
   7. All types of fruits/ nuts/ vegetables classified under Chapter-7 and Chapter-8 of ITC (HS) book;
   8. Items covered under heading 2515, 2516, 3301, 3302, 3303 6801 and 6802 of ITC(HS) Classification;
   9. Items covered under Chapter 50 to 63 of ITC (HS) classification.
   10. Acetic Anhydride, Ephedrine and Pseudoephedrine;
   11. Vitamins;
   12. Biotechnology items and related products;
   13. Insecticides, Rodenticides, Fungicides, herbicides, Anti sprouting products, and plant growth regulators, disinfectants and similar products of all forms, types and grades;
   14. Waste/Scrap of all types; and
   15. Second hand goods.
7. Inputs imported shall be subject to pre import condition and they shall be physically incorporated in the export product (making normal allowance for wastage). In case of local procurement   under   invalidation/ARO,   the   inputs   shall   be procured prior to manufacture of export item and shall be physically incorporated in the export product.
8. Wherever value of by-products and recoverable wastage generated during manufacturing process is more than 5% of CIF value, corresponding quantity of main input shall be reduced from the entitlement to the extent that value of disallowed quantity is equal to the value of by-products and recoverable wastage generated during manufacturing process.
9. DGFT or any person authorised by him may conduct audit of the manufacturer. The frequency and manner of audit shall be prescribed by DGFT in Handbook of Procedures. The manufacturer shall be required to provide the necessary facility to verify the books of account/other documents as required, give information and assistance for timely completion of the audit. Non-availability of production and consumption documents/data shall be treated as misdeclaration and indulgence in fraudulent activities and shall be penalised under FT (D&R) Act, as amended and rules made there under.
10. DGFT or any person authorised by him may initiate special audit, considering the nature and complexity of the case and revenue of government, if he is of the opinion at any stage of scrutiny/enquiry/investigation that the norms have not been claimed correctly or the excess benefit has been availed. Special audit can be conducted even if the manufacturer has already been audited before.
11. If the audit results in detection of misdeclaration and/or instances of claiming of inputs which are not used in manufacturing process or excess quantity of inputs than consumed, demand and recovery actions will be initiated in addition to initiation of action against the authorisation holder, manufacturer and Chartered Engineer in terms of Foreign Trade Development and Regulation Act 1992 and/or Customs Act 1962, as amended and rules made there under.
12. In cases where Chartered Engineer has not exercised due diligence or has willfully become party to misdeclaration action will be initiated under against such person under FT (D&R) Act 1992, as amended and rules made there under. In addition, such cases shall also be referred to ‘The Institute of Engineers India for taking action as warranted under the bylaws of the institute.
13. All the provisions applicable for Advance Authorisation Scheme shall be applicable to this scheme also in so far they are not inconsistent with this scheme.

Value Addition

Value Addition for the purpose of this Chapter (except for Gems and Jewellery sector for which value addition is prescribed in paragraph 4.38 of FTP) shall be:-

A-B
VA =  ———–  x100, where
B

A =FOB value of export realized/FOR value of supply received.

B =CIF value of inputs covered by Authorisation, plus value of any other input used on which benefit of DBK is claimed or intended to be claimed.
Minimum Value Addition

1. Minimum value addition required to be achieved under Advance Authorisation is 15%.
2. Export Products where value addition could be less than 15% are given in Appendix 4D.
3. Deleted
4. Minimum value addition for Gems & Jewellery Sector is given in paragraph 4.61 of Handbook of Procedures.
5. In case of Tea, minimum value addition shall be 50%.

Import of Mandatory Spares

Import of mandatory spares which are required to be exported/supplied with the resultant product shall be permitted duty free to the extent of 10% of CIF value of Authorisation.

Ineligible categories of import on Self Declaration basis

1. Import of following products shall not be permissible on self- declaration basis:
   1. All vegetable / edible oils classified under Chapter-15 and all types of oilseeds classified under Chapter-12 of ITC (HS) book;
   2. All types of cereals classified under Chapter–10 of ITC (HS) book;
   3. All Spices other than light black pepper (light berries) having a basic customs duty of more than 30%, classified  under Chapter-9 and 12 of ITC (HS) book;
   4. All types of fruits/ vegetables having a basic customs duty of more than 30%, classified under Chapter-7 and Chapter-8 of ITC (HS) book;
   5. Horn, Hoof and any other organ of animal;
   6. Honey;
   7. Rough Marble Blocks/Slabs; and
   8. Rough Granite.
   9. Vitamins except for use in pharmaceutical industry.
2. For export of perfumes, perfumery compounds and various feed ingredients containing vitamins, no Authorisation shall be issued by Regional Authority under paragraph 4.07 of Handbook of Procedures and applicants shall be required to apply under paragraph 4.06 of Hand Book of Procedures to the Norms Committee.
3. Where export and/or import of biotechnology items and related products are involved, Authorisation under paragraph 4.07 of Handbook of Procedures shall be issued by Regional Authority only on submission of a “No Objection Certificate” from Department of Biotechnology.

Accounting of Input

1. Wherever SION permits use of either (a) a generic input or (b) alternative input, unless the name of the specific input together with quantity [which has been used in manufacturing the export product] gets indicated / endorsed in the relevant shipping bill and these inputs, so endorsed, within quantity specified and match the description in the relevant bill of entry, the concerned Authorisation will not be redeemed. In other words, the name/description of the input used (or to be used) in the Authorisation must match exactly with the name/description endorsed in the shipping bill.
2. In addition, if in any SION, a single quantity has been indicated against a number of inputs (more than one input), then quantities of such inputs to be permitted for import shall be in proportion to the quantity of these inputs actually used/consumed in production, within overall quantity against such group of inputs. Proportion of these inputs actually used/consumed in production of export product shall be clearly indicated in shipping bills.
3. At the time of discharge of export obligation (issue of EODC) or at the time of redemption, Regional Authority shall allow only those inputs which have been specifically indicated in the shipping bill together with quantity.
4. The above provisions will also be applicable for supplies to SEZs and supplies made under Deemed exports. Details as given above will have to be indicated in the relevant Bill of Export, ARE-3, Central Excise certified Invoice / import document / Tax Invoice for export prescribed under the GST rules

Pre-import condition in certain cases

1. DGFT may, by Notification, impose pre-import condition for inputs under this Chapter.
2. Import items subject to pre-import condition are listed in Appendix 4-J or will be as indicated in Standard Input Output Norms (SION).
3. Import of drugs from unregistered sources shall have pre-import condition.

Details of Duties exempted
Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation for physical exports are also exempt from whole of the integrated tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may be provided in the notification issued by Department of Revenue, and such imports shall be subject to pre-import condition. Imports against Advance Authorisations for physical exports are exempted from Integrated Tax and Compensation Cess upto 31.03.2018 only.
Admissibility of Drawback

Drawback as per rate determined and fixed by Customs authority in terms of DoR Rules shall be available for duty paid imported or indigenous inputs (not specified in the norms) used in the export product. For this purpose, applicant shall indicate clearly details of duty paid input in the application for Advance Authorisation. As per details mentioned in the application, Regional Authority shall also clearly endorse details of such duty paid inputs in the condition sheet of the Advance Authorisation.
Actual User Condition for Advance Authorisation

1. Advance Authorisation and / or material imported under Advance Authorisation shall be subject to ‘Actual User’ condition. The same shall not be transferable even after completion of export obligation. However, Authorisation holder will have option to dispose of product manufactured out of duty free input once export obligation is completed.
2. In  case  where  CENVAT/input  tax  credit  facility  on  input  has  been availed for the exported goods, even after completion of export obligation, the goods imported against such Advance Authorisation shall be utilized only in the manufacture of dutiable goods whether within the same factory or outside (by  a  supporting  manufacturer). For this, the Authorisation holder shall produce a certificate from either the jurisdictional Customs Authority or Chartered Accountant, at the option of the exporter, at the time of filing application for Export Obligation Discharge Certificate to Regional Authority concerned.
3. Waste / Scrap arising out of manufacturing process, as allowed, can be disposed off on payment of applicable duty even before fulfillment of export obligation.

Validity Period for Import and its Extension

Validity period for import under Advance Authorisation shall be as prescribed in Handbook of Procedures.
Importability/Export ability of items that are Prohibited/Restricted/ STE

1. No export or import of an item shall be allowed under Advance Authorisation / DFIA if the item is prohibited for exports or imports respectively. Export of a prohibited item may be allowed under Advance Authorisation provided it is separately so notified, subject to the conditions given therein.
2. Items reserved for imports by STEs cannot be imported against Advance Authorisation / DFIA. However, those items can be procured from STEs against ARO or Invalidation letter. STEs are also allowed to sell goods on High Sea Sale basis to holders of Advance Authorisation / DFIA holder. STEs are also permitted to issue “No Objection Certificate (NOC)” for import by Advance Authorisation / DFIA holder. Authorisation Holder would be required to file Quarterly Returns of imports effected against such NOC to concerned STE and STE would submit half-yearly import figures of such imports to concerned administrative Department for monitoring with a copy endorsed to DGFT.
3. Items reserved for export by STE can be exported under Advance Authorisation / DFIA only after obtaining a ‘No Objection Certificate’ from the concerned STE.
4. Import of restricted items shall be allowed under Advance Authorisation/ DFIA.
5. Export of restricted / SCOMET items however, shall be subject to all conditionalities or requirements of export authorisation or permission, as may be required, under Schedule 2 of ITC (HS).

Free of Cost Supply by Foreign Buyer

Advance Authorisation shall also be available where some or all inputs are supplied free of cost to exporter by foreign buyer. In such cases, notional value of free of cost input shall be added in the CIF value of import and FOB value of export for the purpose of computation of value addition. However, realization of export proceeds will be equivalent to an amount excluding notional value of such input.
Domestic Sourcing of Inputs

1. Holder of an Advance Authorisation / Duty Free Import Authorisation can procure inputs from indigenous supplier/ State Trading Enterprise/EOU/EHTP/BTP/STP in lieu of direct import. Such procurement can be against Advance Release Order (ARO), or Invalidation Letter.
2. When domestic supplier intends to obtain duty free material for inputs through Advance Authorisation for supplying resultant product to another Advance Authorisation / DFIA / EPCG Authorisation, Regional Authority shall issue Invalidation Letter.
3. Regional Authority shall issue Advance Release Order if the domestic supplier intends to seek refund of duties exempted through Deemed Exports mechanism as per provisions under Chapter-7 of FTP.
4. Regional Authority may issue Advance Release Order or Invalidation Letter at the time of issue of Authorisation simultaneously or subsequently.
5. Advance Authorisation holder under DTA can procure inputs from / SEZ units without obtaining Advance Release Order or Invalidation Letter.
6. Validity of Advance Release Order / Invalidation Letter shall be co-terminous with validity of Authorisation.

Currency for Realisation of Export Proceeds.

1. Export proceeds shall be realized in freely convertible currency except otherwise specified. Provisions regarding realisation and non realisation of export proceeds are given in paragraph 2.52, 2.53 and 2.54 of FTP.
2. Export to SEZ Units shall be taken into account for discharge of export obligation provided payment is realised from Foreign Currency Account of the SEZ unit.
3. Export to SEZ Developers / Co-developers can also be taken into account for discharge of export obligation even if payment is realised in Indian Rupees.
4. Authorisation holder needs to file Bill of Export for export to SEZ unit / developer / co-developer in accordance with the procedures given in SEZ Rules, 2006.

Export Obligation Period and its Extension

Period for fulfillment of export obligation and its extension under Advance Authorisation shall be as prescribed in Handbook of Procedures.

Re-import of exported goods under Duty Exemption / Remission Scheme

Goods    exported    under    Advance   Authorisation/   Duty    Free    Import Authorisation may be re-imported in same or substantially same form subject to such conditions as may be specified by Department of Revenue. Authorisation holder shall also inform about such re-importation to the Regional Authority which had issued the Authorisation within one month from date of re-import.

1. Items covered under Chapter 7 and Chapter 15 of ITC (HS) Schedule 2, which is prohibited for export, may be allowed to be exported under the advance authorization scheme. Export shall be allowed subject to pre-import condition under notified SION/prior fixation of norms by Norms Committee in terms of paragraph 4.06 of Hand Book of Procedures. Import and Export would be permitted only through EDI enabled
2. The Export obligation period (EOP) of advance authorizations issued for such items shall be 90 days from the date of clearance of import consignment and no extension in EOP shall be Such import shall be subject to actual user condition and no transfer of imported raw material, for any purpose, including job work, shall be permitted. In case of non-fulfilment of EO/ non-achievement of stipulated value addition, a penalty equal to five times of the CIF value of the imported material, corresponding to the shortfall in EO, shall be imposed in addition to the applicable duty and interest. Provisions of Paragraph 4.49 of Handbook of Procedures shall not be applicable in this case.

Fixation of  Norms

In case where norms have not  been  notified  or  where  applicant wants to get the ad-hoc norms fixed before making an application for Advance Authorisation, application in ANF 4B, along with prescribed documents, shall be uploaded online to concerned Norms Committee (NC) in DGFT headquarters for fixation of SION/Adhoc norm. Details of Norms Committees along with products groups dealt by each Norms Committee and respective email addresses for correspondence relating to norms fixation is as follows:

1. An applicant shall indicate a valid email address for communication purpose and to ensure that this email address is
2. The decisions of Norms Committees shall be available on the website of DGFT (http://dgft.gov.in)  periodically  and  the applicants shall update themselves the status of norms fixation in respect of Authorisation obtained by
3. Exporters / EPC shall provide data to the Norms Committee concerned for the fixation  of  SION/Adhoc   Norms   for  an export product. Norms Committee shall endeavour to fix SION or adhoc norms on receipt of complete data. Any adhoc norm fixed under this para, on the basis of an application made by an exporter shall be valid for one authorisation for which such application is made and no repeat authorisations shall be issued. However, Norms Committee can specify extended validity period, not more than two years from the date of fixation of such adhoc norms, for grant of further authorisations under such norm.
4. Norms Committees shall also function as recommendatory authority for notification of SION and DGFT may notify such norms from time to
5. It is mandatory for industry / manufacturers/ EPCs to provide production and consumption data etc. for the past three years, as may be required by DGFT for fixation of SION. Otherwise, applicants shall not be allowed to take benefit of Advance Authorisation scheme for taking repeat Advance Authorisations on self-declared basis. Norms Committee may also seek data from DoR (CBEC).
6. Experts may be invited from Scientific and Technological institutions as members of Norms Committee for fixation of Norms.

Self-Declared Authorisations where SION does not exist

1. Regional Authority may also issue Advance Authorisation where SION is not fixed, based on self declaration by Wastage so claimed shall be subject to wastage norms as decided by Norms Committee. The applicant shall submit an undertaking to abide by decision of Norms Committee. The provisions in this regard are given in paragraph 4.03 and 4.11 of FTP.
2. In case of revision / rejection, applicant shall pay duty and interest as notified by DoR within thirty days from the date of hosting of Norms Committee decision on DGFT
3. No Authorisation under this paragraph will be issued by Regional Authority for items listed in paragraph 11of FTP.

Cases involving Acetic Anhydride, Ephedrine and Pseudo- ephedrine as inputs.

1. Where Acetic Anhydride, Ephedrine and Pseudo- ephedrine is required as an input for import, applications shall be filed with Regional Authority After filing application online, printed copy of such application shall also be simultaneously endorsed by applicant to (a) Drug Controller of India, Nirman Bhawan, New Delhi,
2. Narcotics Commissioner, Central Bureau of Narcotics, Gwalior (c) respective Zonal Director of Narcotics Control Bureau. The applicant should declare that they would maintain prescribed records / documents and also submit prescribed returns to the relevant authorities, within time as prescribed by law from time to time.
3. Regional Authority shall endorse a copy of such Advance Authorisation to the above three agencies. Regional Authority shall also endorse a condition that before effecting imports, ‘No Objection Certificate’ shall be obtained from Drug Controller and Narcotics Commissioner of

Cases requiring Sanitary Import Permit.

1. Where import of meat and meat products of any kind including fresh, chilled and frozen meat, tissue or organs of poultry, pig, sheep, goat; egg & egg powder; milk & milk products; bovine, ovine and caprine embryos, ova or semen; and pet food products of animal origin has been sought as an input under Advance Authorisation, the Regional Authority, while issuing Advance Authorisation shall endorse a condition that before effecting imports of any of these inputs, Sanitary Import Permit shall be obtained from the Department of Animal Husbandry, Dairying and Fisheries (DAHDF).
2. Regional Authority shall also endorse a copy of authorisation to DAHDF, Krishi Bhawan, New

Advance Authorisation for applicants with multiple units

1. Transfer of any duty free material imported or procured against Advance Authorisation from one unit of a company to another unit for manufacturing purpose shall be done with prior intimation to jurisdictional Customs Authority. Benefit of CENVAT shall not be claimed on such transferred
2. Imported duty free inputs can be taken from the port / domestic supplier’s premises to the factory or the premises of the authorization / co-authorisation holder or the factory of the supporting manufacturer (whose name is endorsed in the authorization or allowed by the Jurisdictional Customs authority). However, such duty free material imported or procured against advance authorization can also be taken from the port directly to the project site of the project authority, subject to furnishing a bond to the customs authority at the port of import and other documents / declaration and other provisions as per Department of Revenue guidelines.

Advance Authorisation for Free of Cost and Paid Material

Authorisations granted in terms of paragraph 4.19 of FTP, a specific endorsement by Regional Authority shall be made on exchange control copy of Advance Authorisation disallowing remittances for material being supplied free of cost. All imported inputs excluding wastage shall be utilised in manufacturing of export product.

Entitlement

Maximum CIF value of one or more authorisations to be issued under paragraph 4.07 of Hand Book of Procedures shall be as under:

1. For Status Holders – upto 300% of FOB and / or FOR value of preceding year’s exports and /or
2. Other than Status Holders – upto 300% of FOB or 10 crore and / or FOR value of preceding year’s exports and/or supplies, whichever is higher.
3. Once adhoc norms are fixed by Norms Committee, value limits mentioned in sub paragraph (i) and (ii) above, would not be applicable to Advance Authorisations issued under paragraph 4.07 of Hand Book of Procedures. Value of such authorisations, subsequent to fixation of norms by Norms Committee, may be enhanced, if the Advance Authorisation was issued restricting the CIF value to maximum of value in sub-paragraph (i) & (ii) above.
4. In such cases Authorisations shall be issued by Regional Authority concerned under “Adhoc Norms Fixed” category and application copies need not be forwarded to NC for fixation / ratification of norms. Where the application has already been forwarded before the ratification of Norms, the Regional Authority shall finalise the case as per the norms subsequently ratified by NC in a similar case of the
5. Authorisation holder in such cases shall be entitled for further authorisation (s) as per norms ratified by Norms Committee without need for subsequent ratification by Norms In such cases the applicant would file application under “Adhoc Norms Fixed” category to the Regional Authority concerned.
6. Where Norms Committee has already ratified norms for same export and import products in respect of an authorization obtained under paragraph 4.07, such norms shall be valid for a period of two years reckoned from the date of The same applicant can avail repeat authorisations based on such adhoc norms. Regional Authority based on such adhoc norms. Another exporter, however, cannot be granted authorization by Regional Authority based on such adhoc norms.
7. Wherever an applicant has applied for components on “net-to- net basis with accountability clause” and such cases fall under paragraph 6 of General Note for all Export Products, the same need not be referred to Norms Committee for fixation of However, exporters shall indicate clearly details of such components imported on “net-to-net basis with accountability clause” in the export/supply documents namely Shipping Bills, Bill of Exports, Tax invoice for export/supplies prescribed under the GST rules evidencing that these imported inputs have been exported.

Authorisation in Excess of Entitlement

An applicant shall be entitled for authorisation in excess of entitlement of CIF mentioned in paragraph 4.12 above subject to furnishing of 100% Bank Guarantee to Customs authority to cover exemption from customs duties. Regional Authority shall make a specific endorsement to this effect on authorisation. This provision shall also apply to Status Holders.

Application and On-line Inter-Ministerial Consultations for fixation of norms / adhoc norms

1. Application filed online by the applicant shall be forwarded electronically to the concerned Technical / Administrative Ministry / Department /Scientific and Technological institutions or any other agency by the respective Norms Committee in the DGFT headquarters within three
2. The concerned Technical / Administrative Ministry / Department / Scientific and Technological institutions or any other agency as the case may be, may communicate its views/comments/recommendations within 45 days electronically/online. In case no comments are received within 90 days, Norms Committee may take a view based on the facts available on recor

Undertaking

Applicant shall give an undertaking that he shall abide by norms fixed by Norms Committee and accordingly take following actions without any demur:

1. Pay customs duty saved, together with interest as notified by DoR, on excess inputs as per norms fixed by NC. However, in case Norms Committee allows lower norms for one, more, or all inputs authorisation holder will have option to undertake additional EO in proportion to excess
2. In case application is rejected by Norms Committee, authorization holder shall pay duty saved amount along with interest on inputs, as applicable as notified by DoR. In cases of domestically procured inputs, the amount to be paid shall be based on exemptions/refund availed on customs duty/taxes/cess by the domestic
3. Applicant shall deposit amount as per paragraph 4.49(a)(ii) of HBP in case the inputs were not freely importable. This amount is in addition to the amounts in sub-paragraph (i)

Time limit for fixation of norms by Norms Committees

1. In case application for fixation of adhoc norms / SION is rejected on ground of non-furnishing of required documents/ information to Norms Committee or technical authority represented in Norms Committee, authorisation holder shall be liable to pay customs duty with interest as notified by DoR and amount as per paragraph 4.49(a)(ii). In case SION for the said product is notified, SION would be made applicable for deciding wastage norms and
2. In cases where entitlement of the applicant for grant of Advance Authorisation as per paragraph 4.12 was lower than the quantity of input applied by the applicant under Advance Authorisation and export obligation is completed pending fixation of norms by Norms Committee, entitlement for authorisation as given in paragraph 4.12 may be re-credited upon production of documentary evidence (copies of Shipping bill / bill of export/ Tax invoice for supply prescribed under GST rules) showing fulfilment of export obligation in respect of previous authorisations. However, bond waiver / redemption shall not be allowed pending fixation of norms in such cases.

Time limit for Representation

Applicant may file representation against the decision of the Norms Committee with regard to the fixation of norms within a period of 90 days from the date of hosting of decision on DGFT website. Representation beyond 90 days shall be subject to payment of composition fee of Rs.5000/-.

Provision for Pharmaceutical Products

Regional Authority may issue Advance Authorisation for pharmaceutical products manufactured through Non-Infringing (NI) process. A manufacturer exporter can avail the benefit of this provision whether the SION or the adhoc norms (under self-declared basis in terms of paragraph 4.07 of the Hand Book of Procedures) for the said product is available or not. “Input combination permitted under NI process, as approved by the concerned agency of the regulated markets”, shall be exporter specific and country specific and shall be available only when the exports are destined for the same country.

Application & Processing

1. An application for grant of an advance authorisation under paragraph4.18 shall be filed online in ANF 4E to concerned Regional Authority along with the documents uploaded
2. Input combination permitted under NI process for manufacturing the product shall be certified by the Chartered Engineer (Chemical) after due verification of the details of each input  and its quantity  as given in Abbreviated New Drug Application (ANDA) / Drug Master File (DMF) of the applicant. The Chartered Engineer (Chemical) will certify the details as per Appendix 4L prescribed in Hand Book of Procedures. Regional Authority shall cross verify the requirement of inputs as per the details given in the application and with Chartered Engineer Certificate accompanying the application and issue the authorization. Regional Authority shall not forward such application to Norms Committee and the inputs and export product so allowed by Regional Authority, shall be treated as input combinations permitted under NI

Redemption of Authorisation issued under paragraph 4.18 HBP

Provisions contained in paragraph 4.49 of Hand Book of Procedures, 2015-20, except sub-paragraph (f), shall be applicable. Regional Authority shall compare the details of Appendix 4-I, duly verified and certified by the jurisdictional Customs Authority, with that of the inputs made/allowed in the authorisation, before allowing redemption or Bond- waiver against individual advance authorization issued for pharmaceutical product(s) manufactured through NI process. As a result of the verification process, in case, it is found that the authorisation holder has consumed lesser quantity of inputs than imported, authorisation holder shall be liable to pay customs duty on unutilized imported material, along with interest thereon as notified by DoR, or effect additional export within the EO period to account for the export of the material remaining un utilized. However, for the Customs duty component, the authorisation holder has also the option to furnish valid duty credit scrip issued under Chapter 3 of FTP.

Maintenance of Proper Accounts for Authorisations issued  under Para 4.18 of HBP

Every Advance Authorisation holder shall maintain a true and proper account of consumption and utilization of duty free imported / domestically procured inputs against each authorisation as prescribed in Appendix 4-I. This record in Appendix 4-I format, duly verified and certified by the jurisdictional Customs Authority, shall be submitted to the concerned Regional Authority at the time of filing application for redemption / bond waiver. Regional Authority shall compare the details of Appendix 4-I, with that of the inputs allowed in the authorisation, before allowing redemption or bond waiver against individual authorization. Such records shall be preserved for a period of at least three years from the date of redemption.

Standardisation of Adhoc Norms

1. For standardization of norms, an application in ANF 4B shall be filed online along with complete data. Such applications shall be made to concerned Norms Committee in DGFT
2. Import of fuel may also be allowed with actual user condition under SION by Norms Committee subject to following:
3. Facility of import of fuel shall be allowed only to manufacturer having captive power
4. In cases where SION specifically allows fuel, same shall be permitted under Advance However, if fuel is not covered specifically under SION, it may be allowed as per general fuel Policy for products covered under SION or under paragraph 4.07 above.
5. Applications for fixation of fuel entitlement for new sectors and modification of the existing entitlement as per General Note for Fuel in Hand Book of Procedures shall be filed online to the Norms Committee along with requisite data in ANF
6. In case an applicant is not able to upload any prescribed document then such documents may be submitted in physical form to the concerned

Modification of SION

An application for modification of existing SION shall be  filed online in ANF 4B to the concerned Norms Committee in DGFT headquarters.

Amendment of Export item and inputs

1. An application for amendment of an export item or input or quantity of input under SION or under ad-hoc Norms shall be filed online in ANF
2. Applicant would   give   justification   for   seeking amendment and Regional Authority would consider it with specific approval of Head of Office. In case of any major change in input or request for more wastage to that allowed under SION or ad-hoc norm, same should be referred to Norms Committee for

Revision of SION by NC

NC may identify SIONs which in its opinion are required to be reviewed. Exporters are required to submit revised data in ANF 4B for such revision. It is mandatory for industry / exporter(s) to provide production and consumption data etc. as may be required by DGFT / EPC for revision of SION. Otherwise, applicant shall not be allowed to take benefit of Advance Authorization scheme.

Description of an Advance Authorisation

An Advance Authorisation shall, inter-alia, specify:

1. Names and description of items including specifications, where applicable, to be imported and exported / supplied;
2. Quantity of each item to be imported or wherever quantity cannot be indicated, value of item shall be indicated. Wherever, quantity and value of individual inputs is a limiting factor in SION, same shall be applicable;
3. Aggregate CIF value of imports; and
4. FOB / FOR value and quantity of exports /

Exports/Supplies in anticipation or subsequent to issue of an Authorisation. 

1. Exports/supplies made from the date of EDI generated file number for an Advance Authorisation, may be accepted towards discharge of EO. Shipping/Supply document(s) should be endorsed with File Number or Authorisation Number to establish co-relation of exports/supplies with Authorisation issued. Export/supply document(s) should also contain details of exempted materials/inputs
2. If application is approved, authorisation shall be issued based on input/output norms in force on the date of receipt of application by Regional Authority. If in the intervening period (i.e. from date of filing of application and date of issue of authorisation) the norms get changed, the authorization will be issued in proportion to provisional exports / supplies already made till  any  amendment in norms is notified. For remaining exports, Policy / Procedures in force on date of issue of authorisation shall be
3. The export of SCOMET items shall not be permitted against an Authorisation until and unless the requisite SCOMET Authorisation is obtained by the
4. Exports/supplies made in anticipation of authorisation shall not be eligible for inputs with pre-import

Exporters Risk

Exports/supplies made      in anticipation of grant      of    an Advance Authorisation shall be entirely on risk and responsibility of exporter.

Admissibility of drawback in case of rejection of application

Customs authorities in terms of DoR rules against shipping bills filed and processed under an Advance Authorisation, in case application for an Advance Authorisation is rejected or modified by Regional Authority, may permit drawback.

Advance Authorisation or DFIA for Intermediate Supplies

1. Application for grant of Advance Authorisation or DFIA for Intermediate supply may be made on the basis of a tie-up arrangement with an ultimate exporter (physical / deemed) holding an Advance Authorisation or DFIA. Regional Authority concerned shall consider such
2. Advance Authorisation or DFIA for Intermediate supply shall be issued after making Authorisation of ultimate exporter invalid for direct import of item, to be supplied by intermediate manufacturer. In such case, a copy of the invalidation letter will be given to ultimate exporter holding Authorisation and copy thereof will be sent to intermediate supplier as well as Regional Authority of intermediate supplier. Intermediate Authorisation holder in such case has an option either to supply intermediate product to the holder of Advance Authorisation (i.e ultimate exporter) or DFIA or to export (physical / deemed) directly. Intermediate supplier can also supply the product(s) directly to the port for export by the ultimate exporter (holder of Advance Authorisation or DFIA). In such cases, shipping bill shall be in the name of the ultimate exporter with the name of intermediate supplier endorsed on
3. Facility of Advance Authorisation shall be available even in cases where intermediate supplier has supplied or intend to supply material subsequent to fulfilment of EO by exporter holding Advance Authorisation / DFIA from where invalidation letter was
4. The invalidation letter shall specify the following:
   1. Name, Address and GSTIN of supplier;
   2. GSTIN & Address of recipient unit of Advance Authorisation/DFIA holder where inputs would be processed;
   3. Name, description including specifications, where applicable, and quantity of items; and
   4. Individual value of items to be

Advance Release Order (ARO)

Application shall be filed online in ANF 4A to Regional Authority concerned for grant of ARO to procure inputs from indigenous sources / STEs.

Details to be given for issue of ARO

1. Application for ARO and ARO shall specify:
   1. Name, Address and GSTIN of supplier;
   2. GSTIN & Address of recipient unit of Advance Authorisation/DFIA holder where inputs would be processed;
   3. Name, description including specifications, where applicable, and quantity of items and
   4. Individual value of items to be
2. An ARO may be issued along with Advance Authorisation / DFIA or subsequently, and its validity shall be co-terminus with validity of Advance Authorisation / 

Facility of Supporting Manufacturer/ Jobber/co– licensee

1. Imported material may be used in any unit of holder of Advance Authorisation subject to condition of paragraph 10 of this Handbook or jobber / supporting manufacturer provided same is endorsed on authorisation by Regional Authority. If applicant desires to have name of any manufacturer or jobber added to authorisation, he may apply. Such endorsement shall be mandatory where prior import before export is a condition for availing Advance Authorisation scheme and authorisation holder desires to have material processed through any other manufacturer or jobber.
2. Upon such endorsement made by Regional Authority, authorisation holder and co-authorisation holder shall jointly and severally be liable for completion of Any one of co-authorisation holders may import goods in his name or in joint names. BG/LUT shall also be furnished in their joint names.
3. If authorisation holder is registered under GST Act, he has an option of getting names of jobber endorsed by jurisdictional Customs authority as per GST Rules in lieu of Regional Authority’s endorsement. In case manufacturer exporter holding authorisation is not registered / not required to be registered under GST Act, job work may be allowed after endorsement of supporting manufacturer’s name in the authorisation from RA concerned. However, authorisation holder shall be solely responsible for imported items and fulfilment of 

Acceptance of BG/LUT

1. Regional Authority concerned will endorse on the reverse of Advance Authorisation at the time of issue  of  authorisation  about acceptance of undertaking given by applicant in relevant Authorisation holder shall execute Bank Guarantee / Legal Undertaking, as the case may be, in terms of paragraph 2.29 of Hand Book of Procedures.
2. In case BG / LUT has been redeemed, Advance Authorization holder can get duty free inputs processed from any manufacturer under Actual User condition as per job work regulations prescribed in terms of provisions of GST Acts under intimation to the Customs However, such restriction shall not be applicable in case of transferable DFIA holder.

Port of Registration

Advance Authorisation shall be issued for purpose of import and export through one of sea ports or airports or ICDs or LCS specified below. Authorisation holder shall register authorisation at the port specified in authorisation and thereafter all imports against said authorisation shall be made only through that port, unless the authorisation holder obtains permission from customs authority concerned to import through any other specified port. However, exports may be made through any of the specified ports.

Sea Ports:

Bedi (including Rozi-Jamnagar),Chennai, Dahej, Dharamtar, Ennore (Tamil Nadu), Haldia,  Hazira(Surat),  Jamnagar, Kakinada, Kandla, Kattupalli Sea Port (Tamil Nadu), Kochi, Kolkata, Krishnapatnam, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra, Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Surat (Magdalla), Tuticorin, Vadinar, Vishakhapatnam.

Air-ports:

Ahmedabad, Bangalore, Bhubaneshwar, Calicut Airport (Kerala), Chennai, Coimbatore Air Cargo Complex, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum, Varanasi, Vishakhapatnam.

ICDs:

Agra, Ahmedabad, Anaparthy, Arakkonam (Tamil Nadu), Bangalore, Babarpur, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chettipalayam (Tamil Nadu), Chheharata (Amritsar), Coimbatore, Dadri, Delhi, Dighi (Pune), Dappar, Dera Bassi, Dhannad Rau (District Indore), Daulatabad, (Wanjarwadi and Maliwada), Durgapur

(Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Guntur, Guwahati (Amingaon), Hyderabad, Irugur Village (Tamil Nadu), Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kalinganagar and Tumb Village(Taluka Umbergaon, District Valsad) Kanpur, Karur, Kheda (Pithampur, District Dhar), Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Mallanpur, Mandideep (District Raisen), Merripalem, Guntur District(AP), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Patli (Gurgaon) Pondicherry, Raipur, Rewari, Rudrapur (Nainital), Salem, Singanalur, Surajpur, Surat, Talegoan (District Pune), Thudiyalur (Tamil Nadu), Tirupur, Todiarpet (TNPM), Tuticorin, Udaipur, Vadodara, Varanasi, Veerapandi (Tamil Nadu), Waluj (Aurangabad), Hosur (Tamil Nadu) and Nattakkam (Kottayam Taluk and District)

LCS:

Agartala, Amritsar Rail Cargo, Atari, Chengrabanda, Dawki, Ghojadanga, Hilly, Jogbani, Mahadipur, Nautanva (Sonauli), Nepalganj Road, Petrapole, Ranaghat, Raxaul, Singhabad, Sutarkhandi.

SEZ:

As notified by Central Government any SEZ can be a specified port for import and export.

1. Commissioner of Customs may permit imports and exports from any other seaport / airport / ICD or
2. For imports from Airport / Seaport / ICD / LCS other than port of registration, a TRA shall be issued by the customs authority at the port of registration to customs authority at port of import. However, this requirement of TRA shall not be required if the port of registration and port(s) of imports are EDI enabled and the authorisation holder has registered its

Facility of Clubbing of Authorisations 

1. No clubbing of Authorisations issued on or before 31st March, 2009 shall be
2. Request for clubbing shall be made in ANF – 4C to the concerned RA who has issued the
3. Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such Authorisations and no further import or export shall be
4. Facility of clubbing shall also be available for Advance Authorisations for Annual Requirement issued during Foreign Trade Policy period 2009-14 and 2015-20, wherever exports and imports have taken place as per Standard Input Output Norms (SION)
5. Only Authorisations under which similar duty exemption has been availed shall only be allowed to be Such Authorisations may pertain to different financial years.
6. In case, exports are made outside EO period of any Authorisation, EO extension may be allowed before clubbing of such authorisation, as per Para 42 of Handbook of procedures on payment of composition fee.
7. Only such Advance Authorisations shall be clubbed where exports under all Authorisations have been made within the initial/ extended EO period of the earliest issued
8. Clubbing shall be permitted only when there is shortfall in fulfilment of export obligation occurred in first authorisation and excess exports are made in subsequent Authorisations. However, this condition may not be insisted when validity period (for import) of Authorisations runs concurrently and imports made in subsequent authorisation falls within validity period (for import) of first authorisation and such import made within validity period of first authorisation are on pro-rata, equal to or in excess to the extent of exports made in first authorisation. Subsequent Authorizations issued after expiry of validity of first Authorisation shall not be allowed to be clubbed.
9. Clubbing of Authorisations issued with different EO periods shall also be allowed.
10. Accounting of exports made outside expiry of initial or extended EO period of earliest issued authorisation shall not be taken into consideration for EO fulfilment after clubbing of such
11. Inputs which are common in all Authorisations shall only be clubbed and duty  free  inputs  shall  be  accounted  for  as  per  SION/Ad-Hoc Norms fixed by NC. In other words all inputs covered in all Authorisations need not be
12. Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained on clubbing. Upon clubbing, if shortfall in value or quantity is noticed, the same shall be regularized under the provisions of Para 49 of HBP 2015-20.
13. After clubbing, Authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations.
14. No clubbing shall be permitted in respect of Authorisations where misrepresentation / fraud have come to the notice of Further, no clubbing  of   Authorisations,   where   EODC/redemption   letter   has already been issued or adjudication orders have already been passed by RA/Customs Authority, shall be permitted.
15. Additional provisions for clubbing of Authorisations covered under Appendix-30A (issued under FTP 2009-14) / Appendix-4J (issued under FTP 2015-20) and Authorisations issued with EOP less than 18 months:
16. Export obligation period of clubbed Authorisations shall be reckoned from the date of earliest import in any of the Authorisations proposed to be
17. Clubbing of such Authorisations shall be allowed provided all exports are completed within initial/extended Export Obligation period reckoned from date of earliest import in any of the Authorisations proposed to be

Enhancement/ Reduction i n the value of Advance Authorisation

1. In respect of an Advance Authorisation, Regional Authority concerned (as per their financial powers) may consider a request:
2. for enhancement / reduction in CIF value of Advance Authorisation;
3. Enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity of exports of an Advance Authorization. However, VA after such enhancement does not fall below minimum VA stipulated (for the export product) in FTP and Hand Book of Procedures laid thereunder and there is no change in input-output norms and FTP under which Advance Authorisation was issued.
4. However, in case of Advance Authorisation (s) issued prior to 27.8.2009 under the FTP, 2004-09, the following conditions shall apply for any enhancement in the value of the authorisation:
5. Wherever exports are on or subsequent  to  8.09,  enhancement in CIF / FOB values shall be subject to a minimum VA of 15% or the VA prescribed in Appendix 4D of current HBP, whichever is lower, for that component of exports.
6. Wherever exports are prior to 8.09, enhancement in CIF / FOB values shall be subject to a minimum VA of 15% or the VA prescribed in Appendix 4D of current HBP, or the VA declared in the original Advance Authorisation application, whichever is lower.

1. Request for pro-rata enhancement in value and quantity may be made either before or after In such cases where there is a change in SION prior to export of said product, pro-rata enhancement shall be given after calculating entitlement on revised SION.
2. Application for the enhancement in CIF or FOB value of Authorisation / reduction in the value of Authorisation / EOP Extension / Revalidation of Authorisation shall be filed online in ANF 4D to concerned Regional Authority.

Application fee for enhancement

Application fee payable for enhancement would be on the difference in CIF values of original and final Authorisation. However, no application fee would be charged if value of Authorisation is being reduced or applicant has already paid maximum fee of Rs. 1,00,000 for Advance Authorisation / DFIA.

Validity period for import and Revalidation of Authorisation

1. Validity period for import of Advance Authorisation shall be 12 months from the date of issue of
2. Validity of Advance Authorisation for supplies under Chapter-7 of FTP shall be co-terminus with contracted duration of project execution or 12 months from the date of issue of Authorisation, whichever is
3. Regional Authority may consider a request of original Authorisation holder and grant one revalidation for six months from expiry date. Request(s) for revalidation of Authorisation shall be filed online in ANF
4. In case of revalidation of advance authorization issued prior to 8.2009 (FTP 2004-2009), it should be ensured that VA is maintained at 15% (and as per details mentioned in paragraph 4.09 of FTP) or as stipulated in the Advance Authorization, whichever is higher. However, for Advance Authorisations for products with VA as per Appendix 4D, the VA shall be as per the VA stated in Appendix 4D or as stated in Advance Authorisation, whichever is higher.

Export Obligation (EO) Period and its Extension

1. Period for fulfillment of export obligation under Advance Authorisation shall be 18 months from the date of issue of Period of EO fulfillment under an Advance Authorisation shall commence from date of issue of Authorisation, unless otherwise specified.
2. In cases of supplies to projects in India under Chapter-7 of FTP or projects abroad, the Export Obligation period shall be co- terminus with contracted duration of the project execution or 18 months whichever is
3. Export Obligation for items falling in categories of defence, military store, aerospace and nuclear energy shall be 24 months from the date of issue of authorization or co-terminus with contracted duration of the export order whichever is
4. Extension in export obligation period for Authorisations issued under Appendix-4J (issued under FTP 2015-20) shall be allowed for a period not more than the half of the stipulated export obligation period. In such cases, composition fee shall be levied @ 0.5% per month of unfulfilled FOB value, in case exports effected are more than 50% within initial Export Obligation period and @ 1% per month where less than 50% exports have been effected within initial export obligation period.
5. Regional Authority may consider a request of Advance Authorisation holder for one extension of EO period up to six months from the date of expiry of EO period subject to payment of composition fee of 0.5% of the shortfall in EO. Authorisation holder will have to submit a self-declaration to RA stating that unutilised imported/domestically procured inputs are available with the applicant.
6. Request for further extension of six months after first extension as in (b) above can be considered by Regional Authority, provided Authorisation holder has fulfilled minimum 50% export obligation in quantity as well as in value, on pro-rata basis. This will be subject to payment of composition fee @ 5% per month on unfulfilled FOB value of export obligation. No further extension shall be allowed by Regional Authority. This provision shall also be applicable to Advance Authorisations issued during FTP 2009-2014. However, only two extensions of six months each as mentioned above can be allowed subject to payment of composition fee and under no circumstance Regional Authority shall allow any extension beyond 12 months from date of expiry of EO period. At the time of filing application for second EO extension, the Authorisation holder will have to submit a self-declaration to RA stating that unutilized imported/domestically procured inputs are available with the applicant.
7. Whenever a ban / restriction is imposed on export of any product, export obligation period in respect of Advance Authorisation already issued prior to imposition of ban, would stand automatically extended for a period equivalent to the duration of ban, without any composition

Provisional clearance of export consignment

Customs      may       allow                provisional  clearance    of        export consignment as and when Authorisation holder produces documentary evidence of having applied for Export Obligation extension to concerned Regional Authority.

A Re-export of goods imported under Advance Authorisation Scheme

Goods imported against Advance Authorisation Scheme, which are found defective or unfit for use, may be re-exported, as per Department of Revenue guidelines. The authorisation holder has to inform the RA who has issued the authorisation before re-export of such defective goods.

Monitoring of Export Obligation

1. Regional Authority, with whom undertaking is executed by Advance Authorisation holder, shall maintain a proper record in a master register indicating starting and closing dates of obligation period and other particulars to monitor EO. In addition, this information may be generated from Computer System and maintained in a book
2. Within two months from the date of expiry of EO  period, Authorisation holder shall file application online by linking details of shipping bills against the
3. In case of online filing of EODC application, Exporters shall link all exports on line on DGFT system by linking file number / authorisation number with the relevant shipping bill numbers / bill of exports / invoices in case of deemed exports/Tax invoices for supplies prescribed under GST rules on quarterly
4. In case of non EDI shipping bills and supplies under Chapter-7 of FTP, exporter shall file relevant details manually on the website of the DGFT within two months from the date of expiry of EO Copies of shipping bills shall be submitted to Regional Authority concerned for verification within two months from date of expiry of export obligation period. In case an applicant is not able to upload any prescribed document then such documents may be submitted in physical form to the concerned authority.
5. E-BRC shall be linked with these shipping bills within six months from the date of expiry of export obligation/realisation or as per the time period prescribed for realization of foreign exchange by Regional Authority shall not take action for non-linking / submission of e-BRC before expiry of said period, provided other documents substantiating fulfilment of EO have been furnished by the exporter
6. In case Authorisation holder fails to complete EO or fails to submit relevant information / documents, Regional Authority shall enforce condition of Authorisation and Undertaking and also initiate penal action as per law including refusal of further authorization to the defaulting

Advance Authorisation for Annual Requirement

1. Exporters eligible for such Authorisations shall file online application in ANF 4A to Regional Authority All provisions applicable to Advance Authorisation given above would apply except the following:
2. Authorisation holder shall have flexibility to export any product falling under export product group using duty exempted
3. Within eligible entitlement, an exporter may apply for one or more than one authorisation in a licensing year, subject to the condition that against one Port of registration, not more than five authorisations can be issued for same product group. One time enhancement / reduction of the authorisation shall be
4. On completion of EO against one or more authorisations, all issued in same licensing year, entitlement of an exporter for that licensing year shall be deemed to be revived by an amount equivalent to EO completed against authorisation (s).
5. In respect of export product for which SION does not exist, no Advance Authorisation for Annual Requirement shall be available. Further, where SION is fixed but input is listed in Appendix 4J, no exports shall be made under Advance Authorisation.
6. At the time of clearance of the import consignment against the authorisation, exporter shall mention technical characteristics, quality and specifications which shall be endorsed in the Bill of Entry / invoice, duly attested by the Customs authority, in respect of following inputs:

“Alloy steel including stainless steel, copper alloy, synthetic rubber, bearings, solvents, perfumes/ essential oils/aromatic chemicals, surfactants, relevant fabrics and marble.”

A Special Advance Authorisation for export of Articles of Apparel and Clothing Accessories covered under Chapter 61 and 62 of ITC(HS) Classification of Export and Import.

1. Policy relating to Special Advance Authorisation for export of Articles of Apparel and Clothing Accessories covered under Chapter 61 and 62 of ITC(HS) Classification of Export and Import is prescribed in Para 4.04A of Foreign Trade

(ii)    Provisions  of  Para  4.05,  4.06,  4.10,  4.11,4.12(v)&(vi),   4.21, 4.24,  4.25,  4.26,  4.29,  4.35,  4.36,  4.37,  4.39,  4.40,  4.41,  4.42, 4.43, 4.43A,   4.44, 4.46, 4.47(b), 4.49, 4.50, 4.51, 4.52 of  Hand Book of Procedures shall be applicable to this scheme in so far as they are not inconsistent with this scheme.

Fulfilment of Export Obligation

Authorisation holder shall file online application in ANF 4F to Regional Authority concerned and upload prescribed documents in support of fulfilment of EO.

Redemption / No Bond Certificate

1. Bond Waiver: In case Authorisation holder exports first (before effecting imports) by using imported inputs / indigenously procured inputs, in that case the Authorisation holder can seek waiver of Bond condition by submitting evidence of export made and payment realised to that extent. If exports made are less than the export obligation stipulated in the Authorisation, request for waiver of bond condition, on pro-rata basis, can also be
   1. For such a request, an applicant has to file online application attaching Shipping Bills and e-BRC. Scanned copy of other documents as prescribed in the ANF 4F shall also be In case of deemed exports or export from non-EDI ports, the documents evidencing proof of export/supply shall be submitted at the counter of Regional Authority concerned giving reference of online application in physical form except e- BRC.
2. In case EO has been fulfilled, Regional Authority shall issue Bond Waiver Certificate (BWC) and forward a copy to the Customs authority at the port of registration of Authorisation enclosing details of shipping bill number(s), date(s), FOB value in Indian Rupees as per shipping bill(s) and description of export products in respect of shipment taken into account for allowing waiver of Bond Such bond waiver shall not preclude the Customs Authority from taking bond in terms of the Customs notification.
3. While allowing waiver of Bond for such exports, Regional Authority may revalidate the Authorisation in continuation for further six months for replenishment of inputs consumed in the production of exported product, from the date of endorsement provided applicant has made a specific request in ANF 4D and paid requisite fee for revalidation. It will be further subject to condition that the applicant had not obtained revalidation earlier in terms of Para 4.41(a) of HBP 2015-20. Maximum period of validity of the Authorisation including revalidation allowed under this para shall not exceed 24 months from the date of issue of Authorisation.
4. Copy of the Bond Waiver Certificate will also be endorsed by the Regional Authority to the Customs at the Port of Registration by post till system of transmitting these through EDI mode under message exchange is introduced between DGFT and
5. Export Obligation Discharge Certificate (EODC):
6. On completion of exports and imports, the Authorisation holder shall submit online application in ANF-4F as in (a) (i) above. In such cases, if EO has been fulfilled, the Regional Authority may issue EODC / Redemption Certificate to Authorisation holder and forward a copy to the Customs authority at the port of registration of Authorisation indicating the same details of proof of fulfilment of EO as stated in paragraph (a) above evidencing fulfilment of Export
7. Copy of EODC will also be endorsed by Regional Authority to Customs at the Port of Registration by post till system of transmitting these through EDI under message exchange between DGFT and CBEC is
8. Ordinarily, redemption of BG / LUT shall not preclude customs authority from conducting random checks and from taking action against Authorisation holder for any misrepresentation, mis- declaration and default detected subsequently as per the Customs Act.
9. Authenticity of such Certificate shall be verified by referring to DGFT website (dgft.gov.in) or from the websites of Zonal offices of DGFT. Zonal offices of DGFT shall publish details of such EODC certificates issued by them and by all RAs coming under their jurisdiction on their official websites every month.
10. Regional Authority shall take action against Authorisation holder in case of non-submission of Appendix 4H & 4-I duly filled in, as stipulated in paragraph 4.51 below or for any misrepresentation, mis-declaration and default detected subsequently in details declared and furnished in Appendix 4H & 4-I. An endorsement to this effect shall be made by Regional Authority in the redemption

Transitional Arrangement for Authorisations issued upto 26.08.2009

1. Advance Licenses including Advance License for Annual Requirement issued up to 26.08.2009 shall be  governed  by provisions contained  in  Chapter-7 of HBP v1(RE-2001),  Chapter  4 of HBP v1  (2002-2007)  as  Notified  on 31.3.2002,  Chapter 4 of  HBP v1 (2004-2009) as notified on 31.8.2004 , and Chapter 4 of HBP v1 (2009-14) as notified on 27.08.2009 respectively  as  amended  from time to time, excepting provisions relating to clubbing and extension in E.O. period which shall be governed by provisions of paragraphs 4.38 and 4.42 (e) respectively and any other provision, as notified by
2. Wherever Customs duty is to be paid on unutilised material, same shall be paid along with interest thereon as notified by

Regularisation of Bona fide Default

Cases of bonafide default   in fulfilment of EO may be regularised by Regional Authority as under:

1. If EO is fulfilled in terms of value, but there is a shortfall in terms of quantity, the Authorisation holder shall, for regularisation, pay:

1. To customs authorities, customs duty on unutilized value of imported / indigenously procured material along with interest as notified by DoR. Exporter will have the option to pay customs duty through valid duty credit scrips issued under FTP. However, interest / penalty shall be required to be paid in cash.

1. An amount equivalent to 3% of the CIF value of unutilised imported material, if the item of import is restricted, into “Head Account: 1453, Foreign Trade and Export Promotion and Minor Head102”. Provisions of this sub paragraph will not be applicable if unutilized material was freely importable on date of import/domestic
2. If the EO is fulfilled in quantity but there is shortfall in value, no penalty shall be imposed if Authorisation holder has achieved minimum VA prescribed. However, if VA falls below the minimum VA prescribed, Authorisation holder shall be required to deposit an amount equal to 1% of shortfall in FOB value in Indian Rupee  through TR in authorised branch of Central Bank of India as above or through EFT mode or through credit
3. Value wise shortfall shall be calculated with reference to actual quantity of exports and FOB value of realisation with reference to pro-rata quantity of imports and CIF value. For example, if export performance is only 50% quantity wise but import has been for complete CIF value permitted, then VA would be calculated on a pro- rata basis, i.e. with reference to 50% of CIF value of imports. This would, accordingly, imply that where Authorisation holder is unable to export , no penalty on value wise shortfall shall be
4. If EO is not fulfilled both in terms of quantity and value, the Authorisation holder shall, for the regularisation, pay as per a), b) and c)
5. In case an  exporter  is  unable  to  complete  EO undertaken  in  full and he has not made any import under Authorisation, Authorisation holder will also have an option to get the Authorisation cancelled and apply for drawback after obtaining permission from Customs authorities for conversion of shipping bills to Drawback Shipping Bills.
6. Regional Authority shall compare relevant portion of Appendix 4H duly verified and certified by Chartered Accountant / Cost Accountants with that of norms allowed in Authorisation(s) and actual quantity imported against Authorisation(s) in the beginning of licensing year for all such Authorisations redeemed in preceding licensing year. In this verification process, in case it is found that Authorisation holder has consumed lesser quantity of inputs than imported, Authorisation holder shall be liable to pay customs duty on unutilized value of imported material, along with interest thereon as notified, or affect additional export within the EO
7. Regularization of Bona fide default in the cases where Authorisation was issued for import of drugs from unregistered sources with pre import

Import of drugs from unregistered sources issued with pre import condition shall be regularised in the following manner:

1. The Authorisation holder shall submit documents showing consumption of full imported quantity as per norms. In case, there is shortfall in fulfilment of EO and unutilised imported quantity remains with the authorisation holder, the Authorisation holder shall either submit a certificate from the jurisdictional Central Excise / Customs Authority certifying destruction of the unutilised imported quantity in their presence or proof of re-export of the same to the same supplier in-terms of para 4.43A of HBP 2015-2020.
2. Exports made under free shipping bills/under same authorisation after expiry of EO period using unutilised quantity of drugs shall also be accepted in-lieu of submission of destruction certificate as stated in para (i) above, provided the exact description and technical characteristics of the drug exported matches with that of export item described in the Advance Authorisation. However, the Authorisation holder shall pay customs duty with applicable interest to the Customs Authority on unutilized quantity imported under Advance Authorisation. The exports made outside EO period shall only be considered for waiver of destruction certificate and not for waiver of liability of applicable duties and interest.

Payment of Customs Duty and Interest in case of bonafide default in EO

1. Customs duty with interest as notified by DoR to be recovered from Authorisation holder on account of regularisation or enforcement of BG / LUT, shall be deposited by Authorisation holder in relevant Head of Account of Customs Revenue i.e., “Major Head 0037 – Customs and minor head 001-Import Duties” in prescribed T.R. Challan within 30 days of demand raised by Regional / Customs Authority and documentary evidence shall be produced to this effect to Regional Authority / Customs Authority immediately. Exporter can also make suo motu payment of customs duty and interest based on self/own calculation as per procedure laid down by DoR.
2. Mode of payment: Following modes of payment are available:
   1. Payment in cash through TR Challan to Customs Authority.
   2. Payment of customs duty through debit of valid duty credit scrips issued under Chapter 3 (excluding SHIS, SFIS and AIIS scrips) in terms of FTP (2009-14) or Chapter 3 of this FTP or post-export EPCG duty remission scheme scrip, in respect of goods which are permitted under the respective reward/duty remission scrip.
3. Exporter shall obtain an endorsement from Customs authorities on the TR Challan 006 or on the back of the duty credit scrip(s) against which payment of customs duties have been accepted/debited and produce the same to RA along with duty calculation sheet at the time of regularization of their
4. Regional Authority shall verify the quantity of excess import before redeeming the case. RA may direct licence holders to pay balance amount of customs duty after informing the reasons of the difference in the liability worked out by Authorisation holder and the calculations by Regional In such case, the balance amount of duty and interest, if any shall be paid by Authorisation holder within 30 days, for regularization of the matter.
5. The interest shall be paid in cash through TR Challan 006 at the rate applicable on the date of payment of delayed duty amount to the Customs
6. On receipt of said documentary evidence from Authorisation holder, Regional Authority shall redeem the case, shall endorse details of duty paid on the EODC/Redemption Letter and inform details of recovery/ deposits made to the Customs Authority at the port of registration or the Commissioner of Customs having jurisdiction over the factory of the Authorisation holder, as the case may
7. Payment of duty, interest and any dues for regularisation shall, however, be without prejudice to any other action that may be taken by Customs Authorities at any stage under Customs Act, 

Maintenance of Proper Accounts

Every Advance Authorisation holder shall maintain a true and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation as prescribed in Appendix 4H or 4I, as applicable. These records are required to be sent to the concerned Regional Authority at the beginning of each licensing year for all those authorisations, which have been redeemed in previous licensing year. However, these records in said format are required to be submitted for authorisations issued on or after 13-05-2005. Such records should be preserved for a period of at least three years from date of redemption.

Consideration of cases against lost EP copy of the Shipping Bills and / or Bank Realisation Certificate

1. In case where Original EP copy of Shipping Bill / original BRC has been lost, request for EODC, No BG / LUT condition under Advance Authorisation / DFIA scheme or endorsement of transferability under DFIA scheme can be considered subject to submission of following documents in lieu of those original documents:
2. A duplicate / Customs Certified / Self-attested copy of the shipping Bill in lieu of the original; Duplicate / Bank certified copy of BRC in lieu of original;
3. An application fee equivalent to 1% of duty saved amount. However, no fee shall be charged when such document is  lost by Government agencies and a documentary proof to this effect is submitted;
4. Self declaration by exporter about loss of document and an undertaking to surrender it immediately to concerned Regional Authority, if found subsequently;
5. An indemnity bond by exporter to the effect that he would indemnify Government for financial loss, if any, on account of duty free import entitlement availed / allowed against lost Shipping Bills /
6. Customs Authority, before allowing redemption of BG / LUT or clearance after endorsement of “No BG / LUT condition” or endorsement of transferability, shall verify the genuineness of such shipping bill (s) and ensure that no double benefit against such shipping bill has been availed. This specific condition shall be endorsed by Regional Authority concerned on the