Govt to Ease Advance Authorisation Scheme Rules for Exporters
The Advance Authorisation scheme is likely to get a major compliance boost, with the Indian government proposing simpler, faster norms to help exporters deal with global headwinds.
As per recent reports from official sources, the Directorate General of Foreign Trade (DGFT) and the Ministry of Commerce are working on streamlining the Advance Authorisation framework to reduce delays, ease paperwork, and offer faster turnaround to Indian exporters.
What is the Advance Authorisation Scheme?
The Advance Authorisation scheme, governed under the Foreign Trade Policy (FTP) and issued via DGFT Notifications, allows duty-free import of inputs used in manufacturing export products.
Key highlights:
- Customs duties are exempt on raw materials or inputs required for export goods.
- Export obligation must be fulfilled within a stipulated time (usually 18 months).
- Ideal for sectors like pharma, engineering, textiles, and chemicals.
Current Challenges Faced by Exporters
Despite the scheme’s benefits, many exporters face procedural bottlenecks. Here’s what’s slowing them down:
| Challenge | Impact on Exporters |
|---|---|
| Long processing time for authorisation | Missed export deadlines |
| Complex documentation | Increased compliance burden |
| Delays in EODC (Export Obligation Discharge Certificate) | Refund and benefits get stuck |
| Lack of digital sync with Customs | Manual follow-ups, delays in clearance |
What’s Changing Under the Proposed Relaxation?
According to insiders and government discussions in progress:
✅ Deemed fulfilment norms may be simplified – easing obligation closures
✅ Faster EODC via automated Customs-DGFT integration
✅ Lower compliance for repeat/low-risk exporters
✅ Streamlined audit for closure of cases older than 3–5 years
✅ Enhanced use of ICEGATE + DGFT systems for real-time tracking
Source: Commerce Ministry’s recent consultations with EPCs and trade bodies
DGFT Portal – Advance Authorisation
Legal Reference & Policy Background
- Foreign Trade Policy 2023: Chapter 4 – Duty Exemption and Remission Schemes
- Customs Notifications 18/2021 & 79/2017: Duty exemptions for inputs
- FTP Circulars & Trade Notices: On procedural compliance and EO tracking
- CBIC’s advisory on ICEGATE-DGFT data sync and post-clearance audit systems
Expert Tip:
“Exporters should maintain digital documentation and avoid last-minute submission to DGFT. With automation in place, having clean data is key to faster authorisation and EODC.”
— Rajiv Sinha, Indirect Tax Consultant
Benefits of the Relaxed Scheme (Post-Implementation)
| Feature | Exporter Advantage |
|---|---|
| Automated EODC | Faster refund and closure |
| Less paperwork | Time and cost savings |
| Simplified EO tracking | No delays in compliance status |
| Better coordination with Customs | Smoother clearance and audit process |
How Efiletax Can Help
If you’re an exporter or planning to apply under the Advance Authorisation scheme, Efiletax offers end-to-end support — from DGFT filing, Customs assistance to post-export compliance.
✅ Fast-track DGFT application
✅ Real-time EODC tracking
✅ Audit assistance & closure
Summary
What is Advance Authorisation scheme and how is the govt relaxing it?
The Advance Authorisation scheme allows exporters to import inputs duty-free if they commit to export finished goods. The government is easing rules by automating EODC, simplifying obligations, and reducing compliance delays for faster exporter clearances.
FAQs
Q1. Who is eligible for Advance Authorisation?
Any manufacturer-exporter or merchant-exporter tied with a supporting manufacturer is eligible, subject to value addition norms.
Q2. Is GST also exempt under this scheme?
Yes, IGST and Compensation Cess exemptions apply if imports are made against Advance Authorisation.
Q3. What is the time limit to fulfil export obligation?
Generally, 18 months from the date of authorisation, extendable on application.
Q4. Will this relaxation help MSMEs?
Yes, especially small exporters who face documentation fatigue will benefit from automation and faster EODC issuance.