Advance License

An EOP extension must be applied for before the expiry of the prescribed Export Obligation Period (EOP).

If the extension request is not submitted before the EOP expires, the export obligation may be treated as being in default. In such cases, the default may need to be regularised in accordance with the applicable DGFT provisions, which may involve payment of applicable customs duty, interest, composition fees, and other prescribed charges, as applicable.

Therefore, Advance Authorisation holders should monitor the EOP deadline and apply for an extension, wherever required, well before the expiry date to avoid unnecessary compliance issues and financial liabilities.

EODC stands for Export Obligation Discharge Certificate. It is the official certificate issued by the DGFT confirming that the holder of an Advance Authorisation has fulfilled the prescribed export obligation in accordance with the applicable scheme provisions.

Obtaining the EODC is an important step in completing the Advance Authorisation closure process. Until the export obligation is duly discharged and the required closure formalities are completed, the bond and bank guarantee may remain liable for discharge/release, as applicable.

Failure to obtain EODC and complete the necessary closure formalities may also result in the duty exemption benefit remaining subject to compliance and potential liability, including applicable duty, interest, and other charges in case of default.

Therefore, timely application for EODC and closure of the Advance Authorisation is essential to ensure complete compliance and avoid future liabilities.

The AA-EODC-Clubbing service facilitates the clubbing of Export Obligation Discharge Certificates (EODCs), subject to the clubbing conditions and applicable provisions prescribed by the DGFT.

Under this process, the export performance of multiple Advance Authorisations can be consolidated, wherever eligible, to facilitate the issuance of a single combined EODC.

This service helps simplify the closure process, streamline documentation, and ensure compliance with the applicable DGFT requirements for Advance Authorisation clubbing.

Invalidation under the Advance Authorisation Scheme allows the authorisation holder to procure eligible inputs from domestic suppliers in lieu of importing them under the duty exemption benefit.

This is a useful option when the required inputs are readily available in the domestic market or when domestic procurement is more commercially viable than importing the inputs.

By opting for invalidation, exporters can source inputs locally while complying with the applicable DGFT conditions and export obligation requirements under the Advance Authorisation Scheme.

SION (Standard Input Output Norms) are the standard input-output ratios prescribed by the DGFT for specified export products. They define the permissible quantity of inputs that can be imported or procured against the corresponding quantity of export products.

Where an applicable SION is not available for your export product, you may apply for Ad-Hoc Norms Fixation before the DGFT Norms Committee.

However, the Ad-Hoc Norms route generally involves additional documentation, technical justification, and a longer approval process compared with an authorisation based on established SION.

Choosing the appropriate norms route can help ensure a smoother and more efficient Advance Authorisation application and export obligation compliance process.

Yes, amendment of an Advance Authorisation is a common requirement as export orders, production requirements, or input specifications evolve.

Subject to the applicable DGFT provisions and conditions, amendments may be permitted to details such as authorised quantity, value, input-output norms, and other relevant particulars of an already issued authorisation.

Timely amendments help exporters keep their Advance Authorisation aligned with actual business requirements and ensure smooth export obligation fulfilment and compliance.

Advance Authorisation (AA) and EPCG (Export Promotion Capital Goods) Scheme address different requirements within the export supply chain and, subject to applicable conditions, may be used together.

• Advance Authorisation (AA): Provides duty exemption on eligible imported inputs such as raw materials, components, and other inputs that are consumed in the manufacture of export products. The authorisation is subject to fulfilment of the prescribed export obligation.
• EPCG Scheme: Facilitates the import of eligible capital goods, machinery, and equipment for use in the production of export goods or services, subject to the applicable duty benefits and a separate export obligation.

In simple terms, AA supports the procurement of inputs used in export production, while EPCG supports investment in the capital goods and machinery required for export production.

Both schemes can complement each other where eligible, helping exporters manage input costs, modernise production facilities, and strengthen their export competitiveness.

Yes. CAC (Chartered Accountant Certificate) is commonly used to certify input consumption, production, and export data at various stages of the Advance Authorisation compliance and closure process, including EODC applications.

Where technically required or applicable, a CEC (Chartered Engineer Certificate) may also be submitted to certify relevant technical details, input-output ratios, consumption norms, or production-related information.

The appropriate certification depends on the nature of the application and the specific DGFT requirements applicable to the Advance Authorisation.

There is no fixed turnaround time for processing the application, as the timeline may vary depending on the nature of the authorisation, the current workload of DGFT authorities, completeness of the clubbing requirements (where applicable), and whether any deficiency queries or clarifications are raised during processing.

We aim to minimise processing time by ensuring that the application is complete, accurate, and supported by all required documents at the time of submission.