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.

AI Summary

Advance Authorization: Separate Storage of Duty-Free Inputs Required, Use Only Pre-Export Inputs for Export Obligations. See FTP Chapter 4, Para 4.1.3.1. A participant in a discussion forum inquired about the requirements for separate storage of duty-free imported inputs under advance authorization and whether final products for export must be manufactured solely from these inputs. An expert responded that separate storage is necessary for accountability, and if imported under the pre-export option, only those inputs must be used to fulfill export obligations. The inquirer sought specific provisions in the Foreign Trade Policy (FTP) or Handbook of Procedures (HBP), and was directed to Chapter 4, specifically para 4.1.3.1, which outlines the conditions for advance authorization.