Advance Authorisation Scheme

GS Paper III Indian Economy

Context:

18.8

Directorate General of Foreign Trade (DGFT) implements the Advance Authorisation Scheme under the Foreign Trade Policy.

About Advance Authorisation Scheme:

It allows duty-free import of inputs, which are physically incorporated in an export product.
In addition to any inputs, packaging material, fuel, oil, and catalyst which is consumed / utilized in the process of production of export products, is also allowed.
Eligibility of Inputs: Determined by Sector-specific Norms Committees based on input-output norms.
Prerequisites for Applying:
- To apply for an Advance Authorisation scheme, an Import-Export Code (IEC) is required.
- Other prerequisites are mentioned in the Chapter 4 of Foreign Trade Policy and Handbook of Procedures.

About Directorate General of Foreign Trade (DGFT):

It is an attached office of the Ministry of Commerce and Industry and is headed by Director General of Foreign Trade.
Functions:
- Regulation and promotion of foreign trade through regulation.
- Increasing of exports, DGFT has since been assigned the role of “facilitator”.
- issues licenses to exporters and monitors their corresponding obligations
Headquarters: New Delhi