Advance Authorisation Explained

Got an export order but dreading the customs duty on your raw materials? Advance Authorisation (AA) under Chapter 4 of India's Foreign Trade Policy 2023 lets manufacturer and merchant exporters import inputs — raw materials, components, consumables and packing material — completely duty-free, as long as they go into your export product. In this video, we break down how AA actually works: the difference between AA and post-export schemes like Duty Drawback, the 12-month import validity (plus revalidation), the 18-month Export Obligation Period (plus extensions), what happens if you miss your obligation, and how clubbing and invalidation give you flexibility along the way. We also explain why your duty-free import isn't "free money" until you've secured your EODC — and how your bond or bank guarantee only gets released once DGFT confirms you've met your obligation. Whether you're about to apply for Advance Authorisation or already hold one and need help tracking your Export Obligation Period, our team handles the entire process end to end.