Duty Exemption Scheme: Advance Authorisation allows duty free input imports subject to export obligations and compliance. The Chapter prescribes the duty exemption/remission regime under FTP, detailing the operation of Advance Authorisation, DFIA and DEPB schemes: application and documentation requirements, reliance on SION or NC fixed norms, entitlement limits, port registration, monitoring and record keeping, export obligation periods and extensions, mechanisms for clubbing and enhancement, and prescribed regularisation of defaults through payment of customs duty, interest, composition fees or bank guarantees. Specialized provisions govern gem & jewellery replenishment, nominated agencies, and lost document procedures.