Advance Authorisation Scheme Meaning

The Advance Authorisation Scheme (AA) is a duty exemption scheme for exporters offered by the Indian government. It is provided through the Directorate General of Foreign Trade (DGFT) and incentivizes the import of required raw materials and additives that are physically incorporated into a product that is bound for exports. There can be fuel, oil, power, or catalysts consumed in the production of the export items. The Advance Authorisation Scheme (AA) makes the import of such inputs duty-free. The scheme also allows normal allowance for wastage of these inputs. Notification about the products to be included or excluded from the scope of AA is released as and when required by the DGFT in the form of public notices.