What is Advance Authorisation under the Self-Ratification Scheme?
Under Para 4.06 of the Foreign Trade Policy (FTP) 2023, an eligible exporter can apply for Advance Authorisation on a self-ratification basis. The applicant’s input-output norms and wastage claimed are treated as final, and subsequent ratification of those norms by the Norms Committee is not required.
Advance Authorisation under the Self-Ratification Scheme is a type of Advance Authorisation which provides a route for obtaining an Advance Authorisation for eligible exporters intending to use eligible inputs to manufacture an eligible export product which is not covered by an existing SION or any valid ad hoc norms. It is also applicable where an existing SION or ad hoc norm does not cover additional inputs that the exporter intends to use in the manufacturing process.
Under Para 4.06 of FTP 2023, the Regional Authority (RA) may issue the Advance Authorisation without referring the case to the Norms Committee for ratification of the norms.
This scheme is, however, restricted only to specified categories of eligible exporters and is subject to prescribed restrictions on export products and the inputs used. The application must also be accompanied by a Chartered Engineer Certificate as per Appendix 4K, issued in the prescribed format and within the Chartered Engineer’s area of competence.
Product with no SION or ad hoc norms? Book a free consultation and our DGFT team will assess your eligibility.
WhatsApp 91004 44999When can Self-Ratification be used?
Self-Ratification under Advance Authorisation may be used in two situations. Follow the checks below to see where your product stands.
No SION or valid ad hoc norms
There is no existing SION or valid ad hoc norms for the export product.
Additional inputs not covered
A SION or ad hoc norm exists, but the exporter proposes to use additional inputs in the manufacturing process.
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1the normal SION route may be usedIs the export product covered by an existing SION?If an applicable SION completely covers the required inputs…
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2the route based on the existing norm may be preferableIf no SION exists, is a valid ad hoc norm available?If an applicable ad hoc norm already covers the required inputs…
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3Does the process need an additional input not covered by the SION or ad hoc norm?Or is there no SION or valid ad hoc norm at all?
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The Self-Ratification Scheme can be consideredNext, verify eligibility and the restrictions on export products and inputs.
Key facts
- Scheme: Advance Authorisation under the Self-Ratification route is available as per the policy in Para 4.06 of FTP 2023 and the procedural provision of Para 4.07A of HBP 2023.
- Administering authority: the Regional Authority may issue the Advance Authorisation based on the applicant’s self-ratified norms.
- Norms Committee is not required to ratify the self-ratified norms: the input-output norms and wastage claimed by the applicant are treated as final. The application will not be referred to the Norms Committee for ratification of norms. The RA may issue the Advance Authorisation as applied for, subject to the conditions prescribed under FTP and HBP.
- Chartered Engineer Certificate: the application must be accompanied by a Chartered Engineer Certificate in Appendix 4K.
Eligible exporters
The Self-Ratification Scheme is available to an exporter who satisfies the prescribed eligibility conditions, including the following, subject to the specific conditions prescribed under Para 4.06 of FTP 2023.
AEO certificate holders
A manufacturer exporter, or a merchant exporter tied to a supporting manufacturer, holding an AEO Certificate.
2-Star or above status holders
A status holder who is a manufacturer-cum-actual user, holds valid 2-Star or above status and has already applied for AEO certification.
- Submission of the AEO application acknowledgement
- Specified undertakings to DGFT
- Audited by DGFT as laid down in the HBP
Can you use the Self-Ratification Scheme?
Answer four questions for a first indication. Our DGFT team assesses your eligibility in full before filing.
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Ineligible inputs and export product restrictions
The scheme imposes restrictions on specified categories of inputs and export products as per Para 4.06(vii) of FTP 2023.
Ineligible inputsPara 4.06(vii), FTP 2023
- Vegetable or edible oils under Chapter 15 and oilseeds under Chapter 12
- Cereals under Chapter 10
- Horn, hoof and other organs of animals
- Wild animal products, organs and waste
- Honey
- Inputs having basic customs duty of 30% or more
- Fruits, nuts and vegetables under Chapters 7 and 8
- Specified headings including 2515, 2516, 3301, 3302, 3303, 6801 and 6802
- Items under Chapters 50 to 63 of ITC (HS)
Export products not availablePara 4.06(vii), FTP 2023
- Items under Chapters 1 to 24 and Chapter 71 of ITC (HS) Classification
- Biotechnology items and related products
- SCOMET items
Benefits of the Self-Ratification Scheme
Faster issuance of Advance Authorisation
An eligible exporter does not have to wait for the Norms Committee to first fix or subsequently ratify the norms. The RA can issue the Authorisation based on the application and prescribed supporting documentation, subject to the conditions of the scheme. This can be particularly useful where an exporter has an immediate export order and requires duty-free import of inputs.
Useful where no SION or ad hoc norms exist
This scheme provides an alternative for eligible AEO exporters where the export product is not covered by a SION or a valid ad hoc norm.
Useful for additional inputs
Where a SION or ad hoc norm exists but does not cover an additional input required in the manufacturing process, the Self-Ratification Scheme may provide a route for such additional input, subject to the scheme’s eligibility and restrictions.
Greater certainty regarding declared norms
Since the self-ratified norms are not subsequently subjected to Norms Committee ratification, the applicant does not face the risk of revision or rejection of the applied norms.
However, the applicant remains responsible for ensuring that the declared input-output relationship, wastage and technical details are accurate and properly supported.
Chartered Engineer Certificate in Appendix 4K
The application under the Self-Ratification Scheme must be accompanied by a Chartered Engineer Certificate in Appendix 4K. Because the scheme permits an Advance Authorisation without subsequent Norms Committee ratification, the Chartered Engineer’s certification provides an important technical basis for the input-output norms and wastage declared.
- The Chartered Engineer is required to certify the relevant technical and input-output details within their area of competence.
- The Chartered Engineer whose certificate is accepted under the scheme should not have been penalised during the preceding five years under the FT(D&R) Act, Customs Act, Central Excise Act, GST Acts and allied laws and rules.
An illustrative example
A manufacturer-exporter holding the required AEO status develops a new engineering product for export
There is no SION or valid ad hoc norm covering the export product. The manufacturing process requires three inputs for the manufacture of 1,000 kg of the finished export product.
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Establish the requirement
The exporter establishes the actual technical requirement of these inputs and obtains the prescribed Chartered Engineer Certificate as per Appendix 4K.
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Apply under the Self-Ratification Scheme
The exporter applies for an Advance Authorisation under the Self-Ratification Scheme, providing the required details under Appendix 4E.
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RA examines and may issue
The Regional Authority examines the application and supporting documents and may issue the Advance Authorisation based on the norms applied for. The application does not subsequently go to the Norms Committee for ratification.
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Norms treated as final
If the Authorisation is issued with the above input-output norms, those norms and the wastage claimed are treated as final under the Self-Ratification Scheme, subject to the applicable conditions.
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Import, manufacture and export
The exporter can then import the permitted inputs duty-free, manufacture the export product and fulfil the applicable Export Obligation in accordance with the terms of the Advance Authorisation.
Documents required
The application should generally be supported by the prescribed information and documents, including, as applicable:
Applicant and eligibility
- IEC and applicant details
- Valid AEO Certificate, or the Status Holder Certificate with the required supporting documents
- Details of the supporting manufacturer, where applicable for a merchant exporter
Application
- ANF-4A application for Advance Authorisation
- Appendix 4E containing the prescribed application details
Product and inputs
- Details of the export product, including appropriate description and classification
- Details of each proposed input, including specific description and 8-digit ITC (HS) classification
Process and data
- Details of the manufacturing process
- Technical, input-consumption and production data supporting the proposed norms
Certification
- Chartered Engineer Certificate in Appendix 4K
Additional
- Any additional technical documents or certificates required by DGFT or the RA for the particular product or manufacturing process
How Self-Ratification Advance Authorisation works
Fourteen steps, grouped into four phases.
Check the route
Steps 1–6Check for an existing SION. Determine whether the export product is covered by an existing SION. If an applicable SION completely covers the required inputs, the normal SION route may be used instead of Self-Ratification.
Check for valid ad hoc norms. If no SION exists, determine whether a valid ad hoc norm is available for the export product. If an applicable ad hoc norm already covers the required inputs, the normal route based on the existing norm may be preferable.
Identify whether additional inputs are required. Where a SION or ad hoc norm exists but the manufacturing process requires an additional input not covered by it, determine whether the Self-Ratification Scheme can be used.
Verify eligibility. Ensure that the applicant satisfies the applicable eligibility requirements, including the prescribed AEO or status-holder conditions.
Check export product restrictions. Verify that the export product is not one of the categories excluded from the Self-Ratification Scheme, including the specified chapters and products and SCOMET items.
Check input restrictions. Verify that the proposed inputs are not covered by the restricted categories under Para 4.06 of FTP 2023.
Prepare the norms
Steps 7–8Determine the input-output norms. Establish the actual technical requirement of each input and the applicable wastage based on the manufacturing process. The quantities should be technically and commercially justifiable and supported by appropriate production and consumption information.
Obtain the Chartered Engineer Certificate. Obtain the prescribed Chartered Engineer Certificate as per Appendix 4K after ensuring that the Chartered Engineer is eligible to certify based on their area of competence.
File and issue
Steps 9–11File the Advance Authorisation application. Submit the online Advance Authorisation application in ANF-4A, together with the required details under Appendix 4E and the Chartered Engineer Certificate in Appendix 4K.
RA processes the application. The Regional Authority examines the application and supporting documents. The case is not referred to the Norms Committee for ratification of norms, as per the conditions of the scheme.
Issuance of Advance Authorisation. The RA may issue the Advance Authorisation as applied for, subject to the applicable FTP and HBP conditions. The input-output norms and wastage claimed are treated as final and do not require subsequent Norms Committee ratification.
Import, export and close
Steps 12–14Import the permitted inputs. The Authorisation holder may import the permitted inputs subject to the conditions of the Advance Authorisation and the applicable Customs exemption.
Manufacture and fulfil the Export Obligation. The imported inputs must be used in accordance with the applicable Advance Authorisation conditions, and the Authorisation holder must fulfil the prescribed Export Obligation within the applicable period. EO extension
Complete redemption and closure formalities. After fulfilment of the Export Obligation and compliance with the applicable conditions, the Authorisation holder may apply for the prescribed Advance Authorisation redemption or EODC to complete closure formalities. Apply for EODC
Post-issuance audit and scrutiny under Self-Ratification
The self-ratified norms can be subjected to post-issuance audit by DGFT, particularly to verify the applicant’s production, consumption and utilisation records and the basis on which the self-ratified norms were claimed.
Specifically, in the case of a 2-Star or above status holder using the alternative eligibility route pending AEO certification, the status holder shall be audited by DGFT as laid down in the HBP.
FAQs
An exporter holding an AEO Certificate is eligible to opt for the Self-Ratification Scheme. The eligibility is available to both manufacturer exporters and merchant exporters tied to a supporting manufacturer, subject to the conditions of the scheme. In addition, a special facility is available to a status holder who is a manufacturer-cum-actual user and holds valid 2-Star or above status, where the exporter has already applied for AEO certification. This route is subject to additional conditions, including submission of the AEO application acknowledgement and specified undertakings to DGFT.
No. The Self-Ratification Scheme eliminates subsequent Norms Committee ratification; it does not eliminate DGFT audit or post-issuance scrutiny.
If a scrutiny establishes that inputs were imported in excess of the Authorisation entitlement, were not properly accounted for, were diverted, or were not used in accordance with the Advance Authorisation conditions, the Authorisation holder may face the applicable consequences, including demand or recovery of applicable customs duties and other action under the relevant law and rules, depending on the nature of the violation.
No. FTP 2023 specifically excludes a list of export products from the Self-Ratification Scheme, as mentioned in Para 4.06(vii) of the FTP 2023.
The application is required to contain complete details as prescribed in Appendix 4E and must be accompanied by a Chartered Engineer Certificate in Appendix 4K. The applicant should also maintain supporting technical and production or consumption records sufficient to substantiate the declared norms.
Appendix 4K relates to a certificate from a Chartered Engineer. The certificate is particularly important because the Self-Ratification Scheme permits the applicant to obtain an Advance Authorisation without subsequent Norms Committee ratification. The Chartered Engineer's certification therefore provides an important technical basis for the input-output norms and wastage declared by the applicant.
Yes, but only under the specific alternative route prescribed in FTP 2023. This requires a specific set of conditions to be fulfilled.
Official DGFT/CBIC source notifications
- Foreign Trade Policy (FTP) 2023, Chapter 4, Para 4.06: Self-Ratification Scheme.
- Handbook of Procedures (HBP) 2023, Para 4.07A: Self-Ratification Scheme.
- Foreign Trade Policy (FTP) 2023, Para 4.06(vii): list of ineligible import items for Advance Authorisation based on the Self-Ratification Scheme.
- Handbook of Procedures (HBP) 2023, Appendix 4E: technical and consumption details needed to assess the input-output norms proposed by the applicant.
- DGFT official portal (dgft.gov.in): ANF-4A prescribed application with filing instructions for Advance Authorisation under Self-Ratification norms.
This page gives general information and is not legal advice. Confirm the current position for your case before acting.
