Import raw materials, components and packing material duty-free under Advance Authorisation, still called the advance licence by many exporters. We handle the DGFT application, Customs registration, export obligation tracking, extensions and the final EODC, so the duty you save stays saved.
Updated for 2026 · last reviewedAdvance Authorisation is a DGFT scheme that lets you import raw materials, components, consumables and packing material without paying customs duty, provided you use them to make goods that you export within 18 months. It is also called an advance licence, and it is issued under Chapter 4 of the Foreign Trade Policy 2023.
No. Advance licence is the older name for the same scheme. When India moved from the old licensing language to “authorisations”, the advance licence became the Advance Authorisation, but the core idea stayed the same: you import inputs duty-free now, and you commit to exporting finished goods made from them later. Banks, customs brokers and buyers still say advance licence or advance license, and both spellings refer to the authorisation the DGFT issues today. Whichever name you use, the same rules apply to the export obligation, the norms and the final EODC.
Advance Authorisation is not a post-export refund like Duty Drawback or RoDTEP. The duty benefit is taken upfront, and the export obligation is secured through a bond, with a bank guarantee where Customs asks for one. That is why the work after the licence is issued — tracking deadlines, keeping records audit-ready and closing the licence on time — often matters more than the application itself.
We handle the full cycle for manufacturer and merchant exporters: fresh applications, Customs registration, revalidation, amendments, invalidation, deemed-export supplies, extensions, regularisation, EODC, surrender and bond cancellation. Before you apply you need a valid Importer Exporter Code (IEC); our wider DGFT services cover the registrations that sit around it.
Not sure if your product qualifies? Send us the product and its main inputs, and we will tell you which norms apply.
WhatsApp 91004 44999Advance Authorisation is open to manufacturer exporters and to merchant exporters tied to a supporting manufacturer (a merchant exporter buys goods and resells them abroad). It covers physical exports, deemed exports and supplies to specified categories under FTP 2023. Here is where our services usually come in:
Keep a valid RCMC registration certificate as well; it supports recognition from Export Promotion Councils and many DGFT benefits.
Eligible exporters can also look at the Interest Equalization Scheme (IES) to reduce the cost of export credit.
The type of authorisation decides how much you can import and how often you apply. The norms decide how much of each input is allowed per unit of export.
The standard route: inputs imported duty-free against a specific export product and quantity, closed with an EODC once the exports are done.
For supplies that count as exports without leaving India, such as supplies to specified projects, EOUs and other categories listed in Chapter 7 of FTP 2023.
For exporters with an export track record who prefer one authorisation covering a year’s inputs for a product group, instead of one authorisation for every order.
A dedicated route for exporters of apparel and clothing accessories to import fabric duty-free against the export of garments.
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The whole journey of an Advance Authorisation, from the DGFT application to the release of your bond:
The authorisation reaches the Customs port of registration named in it electronically, through the message exchange between the DGFT and ICEGATE. Before the first duty-free import you execute a bond with Customs at that port, backed by a bank guarantee where Customs requires one, to cover the duty foregone. Each Bill of Entry is then debited against the authorisation, so every import must be cleared against the correct licence and port. Choose the port of registration carefully at the application stage, because changing it later needs an amendment. Keep the bond value in line with amendments and revalidation; a short bond can hold up clearance at the dock.
Importing often? Certified traders get lighter security requirements and faster clearance. See AEO-T1 for faster customs clearance.
The export obligation runs for 18 months from issue. If exports fall behind, you can ask for an export obligation extension; if they still fall short, the balance is regularised by paying duty and interest on the unused inputs. The example below shows how this plays out. It is illustrative, not an actual client case.
A Hyderabad-based textile exporter holds an Advance Authorisation to import embroidery components duty-free, with an obligation to export finished garments.
The exporter imports 100% of the authorised inputs.
Within the first 18 months, only 70% of the export obligation is met.
To complete the remaining 30%, the exporter takes a first extension of 6 months.
Another 20% is exported, leaving 10% of the original obligation open.
For the last 10%, the exporter takes a second extension of 6 months.
The export obligation is fulfilled and the file moves to EODC closure.
The exporter regularises the shortfall to close the authorisation.
Actual timelines, documents and eligibility depend on your authorisation and the rules in force. This generic illustration shows how the extension and EODC provisions interact; confirm your own case with us before relying on it.
Export obligation period ending soon? Talk to us before it lapses. Extension and regularisation options narrow once the date has passed.
WhatsApp us nowAn Advance Authorisation is only closed when the DGFT Regional Authority issues the Export Obligation Discharge Certificate (EODC). You apply online in form ANF-4F with shipping bills, export realisation data and, where needed, a Chartered Accountant certificate reconciling imports, consumption and exports. Once the EODC is issued, Customs can cancel your bond and release the bank guarantee. Several authorisations can be closed together through clubbing. Our page on how to apply for EODC under Advance Authorisation covers the documents and common deficiency points.
Export obligation periods of Advance Authorisations (including annual requirement and Special AA) and EPCG authorisations expiring between 1 March and 31 May 2026 were extended to 31 August 2026, with no application or composition fee. If your obligation is still open, ask for a regular extension or plan regularisation now.
The DGFT fixed seven new SIONs (A-3708 to A-3714) for chemical and pharmaceutical products. If you used ad hoc norms for these products, check whether a SION now applies. Read our note on the seven new SIONs notified in 2026.
SIONs, fees and procedures are revised through DGFT public notices, and the version in force on the date of issue generally applies to your authorisation. We track every notice on our DGFT and Customs notifications page.
The main benefit is importing inputs for your export products without paying customs duty upfront. That lowers the working capital you would otherwise tie up from the day of import until any refund arrives. But duty-free imports are not yet a saving: until the authorisation is closed through an EODC, the duty foregone is a contingent liability. The toggle below shows the difference.
The duty saved on your imports is real cash today, but it is not yet a saving. Your bond and bank guarantee stay encumbered, and the authorisation stays open until the export obligation is met, documented and proven for the EODC.
Once the export obligation is met and the EODC is issued, the authorisation is formally closed and the bond or bank guarantee is released. The duty exemption is now a closed, audited benefit rather than a contingent liability.
Four habits make closure smoother and protect the value of the exemption:
Clubbing lets excess exports under one authorisation cover a shortfall under another eligible authorisation, which lowers the risk of default. Invalidation lets you buy inputs from an Indian deemed-export supplier when that is simpler than importing.
The DGFT measures export obligation against the approved input-output norms. A mismatch found during the obligation period or at redemption is far harder and costlier to fix than one caught at the application stage, whether you use SION or ad hoc norms.
Closure goes smoothly when the EODC application carries every supporting document with clear workings. Gaps lead to deficiency letters, delays and, in some cases, duty demands.
Authorisations with a supporting manufacturer need careful declarations, production records and export evidence. Identify the supporting manufacturer early and keep records in step to protect the EODC.
The documents below cover most Advance Authorisation work. The exact list depends on the service and your case.
Our Advance Authorisation engagement runs in two phases: filing before the licence is issued, and compliance once you hold it.
Confirm the type of Advance Authorisation and the norms route.
Collect the documents and check them against the norms.
File the application online in ANF-4A.
Reply to deficiency letters and follow up with the Regional Authority.
Obtain the authorisation, register it at the port and set up the bond.
Arrange invalidation if you plan to buy inputs in India.
Track export obligation progress through the whole period.
Flag revalidation of the import period when it is needed.
File export obligation extensions on time, if required.
File amendments for the categories the rules allow.
Review exports and decide whether clubbing is the best route.
File the EODC application and follow it through to bond release.
All three reduce the duty cost of imports, but they suit different plans. Many manufacturers use more than one.
| Factor | Advance Authorisation | EPCG | MOOWR |
|---|---|---|---|
| What it covers | Inputs: raw materials, components, consumables, packing material | Capital goods: machinery, equipment, tools and spares | Inputs and capital goods brought into a customs-bonded warehouse |
| Duty treatment | Exempt at import, subject to conditions | Zero customs duty at import | Deferred; not payable on goods exported, paid when goods are cleared into India |
| Export obligation | Export the finished goods within 18 months | Six times the duty saved, within six years | None |
| Administered by | DGFT, FTP 2023 Chapter 4 | DGFT, FTP 2023 Chapter 5 | CBIC, Customs Act Sections 58 and 65 |
| Best suited to | Exporters with steady export orders for a defined product | Manufacturers adding or upgrading plant to serve exports | Units selling in export and domestic markets, or without a fixed export plan |
| How it closes | EODC from the DGFT | EODC after both obligation blocks | Ongoing monthly returns; no obligation to discharge |
Swipe to see all three schemes
Need machinery as well as inputs? Read how to import capital goods under EPCG, or how MOOWR duty deferment works if part of your output is sold domestically. Our blog compares Advance Authorisation vs EPCG vs MOOWR with worked numbers.
| Factor | Self-filing | Kireeti-managed filing |
|---|---|---|
| Norms and documents | You need working knowledge of every norms category, its procedure and its documents, and must arrange CA or CE certificates separately. | We identify the right norms route and prepare the documents it needs, and our panel of Chartered Accountants and Chartered Engineers issues the certificates your case requires. |
| DGFT queries | You must work out the reason behind each deficiency letter and reply with the right supporting documents. | We handle applications of every type, so we read queries quickly and reply in the form the Regional Authority expects. |
| Tracking deadlines | Your team’s focus is production, so tracking obligation periods, bonds and revalidation across several authorisations is easy to miss. | A dedicated compliance team tracks export obligation, obligation periods, bonds and guarantees for every authorisation we manage. |
| Time and cost | You earmark staff for the whole cycle, and a missed step can cost time, interest and penalties. | Each filing is checked against the norms and documents before submission, which reduces deficiency letters and last-minute surprises. |
Swipe to see the Kireeti-managed column
A short walkthrough of how Advance Authorisation works, from the export obligation to EODC closure. Tap play to watch here, or open it on YouTube.
Prefer YouTube? Watch the Advance Authorisation video on YouTube.
Advance Authorisation is a DGFT scheme under Chapter 4 of the Foreign Trade Policy 2023. It lets an exporter import raw materials, components, consumables and packing material without paying customs duty, as long as those inputs are used to make goods that are exported within the export obligation period. Many exporters still call it an advance licence.
Yes. Advance licence is the older name for the same scheme. The DGFT now uses the term Advance Authorisation, but the idea has not changed: you import inputs duty-free and commit to exporting finished goods made from them. Banks, customs brokers and many exporters still say advance licence or advance license.
The export obligation must normally be completed within 18 months from the date the authorisation is issued. The DGFT can extend this on request, usually against a composition fee. It has also given automatic relief, for example Public Notice 51/2025-26, which extended periods expiring between 1 March and 31 May 2026 to 31 August 2026.
Manufacturer exporters, and merchant exporters tied to a supporting manufacturer, can apply online on the DGFT portal in form ANF-4A. You need a valid Importer Exporter Code (IEC). The authorisation is issued on the basis of SION, ad hoc norms or self-declared norms for your export product.
An Advance Authorisation is normally valid for imports for 12 months from the date of issue. The export obligation period is separate and runs for 18 months from issue. If imports are not completed in time, you can ask the DGFT Regional Authority for revalidation under the Handbook of Procedures.
Inputs imported against an Advance Authorisation are exempt from basic customs duty and, subject to conditions, from IGST, compensation cess and duties such as anti-dumping or safeguard duty. The exact exemption and its conditions come from the linked Customs exemption notification, so check it for your specific import before you plan the shipment.
If exports fall short, the unused duty-free inputs attract customs duty with interest. You can apply to the DGFT to extend the export obligation period, or regularise the shortfall by paying duty and interest on the proportionate unused imports. Acting before the period ends keeps more options open.
EODC means Export Obligation Discharge Certificate. The DGFT Regional Authority issues it once you prove the export obligation is complete, using shipping bills and export realisation data. You apply online in form ANF-4F. With the EODC, Customs can release your bond or bank guarantee and the authorisation is closed.
Yes. Under the DGFT clubbing provisions, excess exports under one authorisation can be set against a shortfall under another eligible authorisation, and the authorisations are closed together through one clubbed EODC application. Clubbing has conditions, so check eligibility well before the export obligation period ends.
Invalidation lets you buy inputs from a supplier in India instead of importing them, with the supply treated as a deemed export. It suits inputs that are easy to source locally at a competitive price or with a shorter lead time. The authorisation is invalidated for the quantity and value you plan to buy locally.
Yes. Export orders change, and the DGFT allows amendments to an issued authorisation, such as quantity, value, port of registration or input-output norms, subject to the Handbook of Procedures. File the amendment before you import or export against the changed details, so that Customs records match your shipments.
There is no fixed turnaround time. It depends on the authorisation, the Regional Authority's workload, whether clubbing is involved and whether a deficiency letter is raised. A complete application with reconciled shipping bills, export realisation data and consumption workings usually avoids the longest delays.
This page gives general information on the Advance Authorisation scheme under FTP 2023. It is not legal advice. Rules change through DGFT public notices and Customs notifications, so confirm the current position for your case with us or on the official portals before acting.
