Annual Advance Licence entitlement enables duty exempt import of inputs for export production subject to SIO norms and export obligations. The Annual Advance Licence (AAL) permits eligible exporters to import inputs and permitted packing materials for a specified product group consistent with Standard Input Output Norms. Eligibility requires manufacturing or merchant status with prescribed registrations and export performance; one licence covers a product group, designates a port of registration for imports, and carries endorsements recording any irrevocable option to use indigenous inputs. Imports under AAL are exempt from basic and specified additional customs duties, while certain excise rule benefits and drawback rights are restricted. The licence is time limited, non transferable, subject to documentation, nexus and presentation requirements, and to enforcement under the Handbook and Act for non compliance.