what is the purpose of Value addition

[Nilesh Kalsariya]

Dear Sir,

I want to know the term VALUE ADDITION in under Advance Authorization,

what is the purpose of Valued Addition,

how can calculate value addition,

Please solve my query,

Thanks

Kalsariya Nilesh

AI Summary

Understanding Value Addition in Advance Authorization: 15% Minimum Requirement, Calculation Formula, and DGFT Application Essentials A user inquired about the concept of value addition under Advance Authorization, seeking clarification on its purpose and calculation. A respondent explained that a minimum value addition of 15% is required to ensure foreign exchange earnings, providing a formula for calculation. The discussion expanded to include the necessity of status certificates and digital signatures for online applications, and the required documentation for applying for licenses at the Directorate General of Foreign Trade (DGFT). Further inquiries touched on export obligation periods and updates on DGFT schemes. The conversation also covered pre-shipment and post-shipment documents and procedures for offering goods against ARE-1/CT.