Advance Authorisation (Advance Licence)

Under the Advance Authorization the Exporter may import raw material without payment of customs duty.

Manufacturer Exporter may take advance Authorization, but Merchant Exporter may take Advance Authorization when Merchant Exporter did tie-up with a Manufacturer Exporter.

For getting Advance Authorization the Exporter should have some capability which are given below—

1-Exporter should be Manufacturer Exporter.

2-Exporter has exported 3 Crore in previous years.

3-Exporter should have Central Excise registration.

4-Exporter should have an Importer-Exporter Code.

Advance Authorization’s validity for 2 years. Advance Authorization is non-transferable. And only licence holder can use this licence.  Within 2 years Exporters will have to import raw material and manufacture a final product and export that product. If Exporters are enable to import raw materials within the validity, Exporter need to revalidate the Advance Authorization. And when  Exporter are enable to Export final product within the validity of Advance Authorization, Exporter need to apply for EOP Extension. And If Exporter has completed the 50% Export within the validity of Advance Authorization, Exporter may claim for EOP. And Exporter may get 6 months Extension three times. Thus, Exporter could get 18 months as EOP. But if Exporter could not complete even 50% Export within validity, Exporter may can`t claim for EOP.