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Advance authorisation for exporters

Atul Lakhotia (Manager) (34 Points)

16 December 2015

Hi,

How can an exporter take advantage of advance authorisation if he has to export the same products which he imports and there is no supporting manufacturer attached to him.

Also, if there any way to avoid import duty for goods which need to be exported.

Please advise.

Regards

Atul

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8 Replies

Ajit Hegde (CA - Final) (1367 Points)
Replied 17 December 2015

Adv authorization(AA) saves you duty up front. An exporter can take AA for raw materials and traded goods. Check out SION (standard input output norms) for your product

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Atul Lakhotia (Manager) (34 Points)
Replied 17 December 2015

Can I take advance license only for trading, i.e. exporting the proucts being imported.

The FTP mentions that merchant exporter should be attached to a supporting manufacturer. But if I am not using that product to manufacture anything else, how should I get th advance license.

Regards

Atul

Shrikant Rathi (Practicing Chartered Accountant) (31 Points)
Replied 22 December 2015

Advance authorization is available only when there is value addition on the inputs which are procured duty free. However, you can claim drawback of the duties paid at the time of import.

Atul Lakhotia (Manager) (34 Points)
Replied 22 December 2015

Hi,

thank you for the response. I understand the duty drawback on products which are made in India. As I understand, we do not receive the drawback for goods which do not have country of origin as India.

Please advise how do we get the drawback on those products which we are importing.

Regards

Atul