DGFT’S ADVANCE AUTHORIZATION - DO’s & DON’Ts – STAFF/Employees’ TRAINING GUIDE

DGFT’S ADVANCE AUTHORIZATION - DO’s & DON’Ts – STAFF/Employees’ TRAINING GUIDE

(Refer Chapter 4 of FTP 2023 and HBP Vol.1 2023 as updated till Nov’ 2025)

DO’s

1. Understand the Scheme Requirements

Know the purpose: duty-free import of inputs for export production under DGFT’s Advance Authorization Scheme. Confirm whether the item falls under the Negative/Restricted List or requires any additional clearance.

2. Verify Export & Import Details Carefully

Check correct HS Codes, product description, SION/Ad-hoc norms, wastage norms, and value addition requirements. Ensure quantities and input-output norms match the standards or approved norms.

3. Ensure Accurate & Complete Documentation

Prepare complete application forms on DGFT’s online portal (preferably under the new revamped system). Attach required documents:

• Export contract/PO,
• Technical details/specifications,
• Manufacturer’s authorization (if applicant is merchant exporter),
• Past export performance (if applicable).
• Verify authorizations before submission to avoid queries (deficiency letters).

4. Maintain Compliance with Scheme Conditions

• Monitor export obligation (EO) timelines and track fulfilment progress.
• Ensure proper recordkeeping: bills of entry, shipping bills, invoices, e-BRCs.
• Validate that imported materials are used only for the specified export product.

5. Coordinate & Communicate Clearly

Update internal teams regarding license validity, EO deadlines, and replenishment norms. Communicate with CHA/customs brokers to ensure correct declaration at customs. Promptly inform management of any policy updates from DGFT.

DON’Ts

1. Don’t Apply with Incorrect or Incomplete Data

Do NOT submit applications with wrong HS codes, mismatched quantities, or missing supporting documents.

Avoid guessing norms—use SION/approved norms or seek clarification.

2. Don’t Violate License Terms

Do NOT divert duty-free imported materials for domestic sale, non-authorized products, or non-export purposes.

Don’t exceed the validity period for imports or fail to track EO completion.

3. Don’t Ignore DGFT Notifications or Policy Updates

Do NOT rely on outdated policy circulars.

Always check the latest Foreign Trade Policy (FTP), Handbook of Procedures (HBP), and DGFT Trade Notices/Notifications/AA Committee Decisions.

4. Don’t Delay Internal Follow-Up

Don’t wait until the last moment to start export obligation documentation or redemption filing.

Avoid delays in responding to DGFT queries, which may lead to rejection.

5. Don’t Miscommunicate with External Stakeholders

Do NOT give exporters incorrect timelines or assurances without checking license conditions.

Avoid errors in customs declarations that may result in penalties or audits.

Quick Reminder for Staff/Employees

• Accuracy in documentation
• Compliance with scheme rules
• Timely tracking of export obligations = Smooth audits, faster clearance, no penalties.