Advane authorization scheme - storage of inputs

[VINOD KUMAR]

Dear Experts. GOOD MORNING TO ALLSirs1. Whether there is any requirement for the separate storage of inputs imported duty free under advance authorization. 2. Whether there is any provision that the final products which are to be exported to fulfill export obligation are to be manufactured only and only from the inputs imported under advance authorization. Pl. Reply. Thanks and regards.

[MUKUND THAKKAR]

Dear Deepak,

1.Whether there is any requirement for the separate storage of inputs imported duty free under advance authorization.

Any raw material import under advance authorization should be storage separately and keeping the accountability of the same. if space constraint please mark the raw material which has identify properly. because consumption and stock details are required to submitted with the DGFT periodically.

2. Whether there is any provision that the final products which are to be exported to fulfill export obligation are to be manufactured only and only from the inputs imported under advance authorization.

it is depended under which option you import input. pre-export or post export. if you import under the pre export than it is compulsory to used only and only those input which you had import under the advance authorization to fulfill export obligation

[VINOD KUMAR]

Thank you very much sir. But, I could not find any such provision in FTP/HBP. Can you please tell me relevant provision or para no. of FTP/HBP which stipulates so. Thanks and regards sir.

[Mukund Thakkar]

Dear Dipak

Refer chapter 4 of FTP which is self explanatory

[VINOD KUMAR]

Thank you very much sir. I have already referred chapter 4 but couldnt find any such provision. PPlease mention para no. of chapter 4.Thanks and regards.

[MUKUND THAKKAR]

Dear Deepak,

4.1.3.1

Advance Authorisation

An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, ⁴[***] catalysts which are consumed / utilised to obtain export product, may also be allowed. DGFT, by means of Public Notice, may exclude any product(s) from the purview of Advance Authorisation

I think you doubt is clear.

[VINOD KUMAR]

Thank yiu very much sir for your prompt reply.

AI Summary

Advance authorization storage requirement: pre export imports must be used exclusively to meet export obligations under FTP rules.
Advance authorization allows duty free import of inputs physically incorporated in export products and certain consumables, subject to possible exclusions. Inputs must be stored separately or clearly identified and accounted for, with consumption and stock records maintained for periodic submission. Under the pre export import option, export obligations must be met using the specific inputs imported under the advance authorization; the post export option permits alternative sequencing.