Replenishment against Advance Authorisation

[Ganesh]

Dear Members,

An advance authorisation was obtained during March 2026 to import goods without duty. During April 2026 a notification 12/2026-Customs dated 01.04.2026 was issued exempting BCD for certain goods (temporary benefit due to middle east conflict). Goods for which AA which was already obtained are covered in this notification. Using the exempted goods bought under notification 12/2026-Customs, goods were manufactured and exported mentioning the AA number. Now that the temporary exemption is withdrawn, can I carryout import replenishment against AA and redeem the AA against exports already made?

I didn't find any condition in notification 12/2026-Customs nor in FTP/HBP of any restrictions on such replenishment.

Wanted to get the views of experts of any specific aspect which i may have to consider or any issue that could come up by following this approach.

Thanks.

AI Summary

Advance authorisation replenishment after temporary duty exemption withdrawal raises redemption questions where exported goods used exempt inputs.
Advance Authorisation replenishment and redemption are questioned where goods covered by a duty-free authorisation were instead procured under a temporary basic customs duty exemption, used for manufacture, and exported with the authorisation number declared. After withdrawal of the temporary exemption, the issue is whether replenishment imports may proceed under the Advance Authorisation and whether it may be redeemed against those exports. No express replenishment restriction is identified under the temporary exemption, Foreign Trade Policy or Handbook of Procedures.