Advance License (Advance Authorisation)
Trusted Advance License Consultants
Advance License, also known as Advance Authorisation, is a powerful export incentive scheme that allows exporters to import raw materials, components, or inputs duty-free for the manufacture of export products. This scheme, managed by the Directorate General of Foreign Trade (DGFT), is designed to lower production costs and boost the global competitiveness of Indian exporters.
📌 What is the Purpose of an Advance License?
The primary objective of the Advance License is to:
- Allow duty-free or concessional import of essential inputs for producing export goods.
- Reduce production costs and enhance profitability for exporters.
- Support export-led growth and make Indian products competitive in the international market.
📌 Who Can Apply?
The scheme is open to:
- Manufacturers or merchant exporters tied with supporting manufacturers.
- Exporters involved in manufacturing or production activities with confirmed or expected export orders.
- Priority sectors based on government export strategies and policies.
📌 Application Process
Filing Application with DGFT
Submit application via the online DGFT portal.
Submit Key Details
Export product description, quantity and value of inputs required, export order or contract copy, bill of materials and production plan.
Review and Approval
Review and approval by DGFT authorities, followed by the issuance of the Advance License.
📌 Key Conditions & Compliance
- Import inputs duty-free only for producing specified export goods.
- Fulfil the export obligation — export a set quantity/value of goods within a specified period.
- Maintain proper records and documentation for verification.
- Non-fulfilment of obligations may result in penalties, duty demands, or suspension of benefits.
📌 Benefits of an Advance License
- ✅ Duty-Free Imports: Significant savings on customs duty.
- ✅ Access to Global Quality Inputs: Helps meet international quality standards.
- ✅ Boost to Exports: Reduced costs improve price competitiveness.
- ✅ Other Incentives: Eligible for post-export benefits like duty drawback or GST refunds.
📌 How We Help
At DGFT EXIM, we specialize in assisting exporters with:
- End-to-end Advance License registration and application filing
- Documentation support and preparation
- Expert guidance on export obligations and conditions
- Liaising with DGFT authorities for speedy approvals
- Post-license compliance and redemption procedures
We simplify the process for you — from application to approval, ensuring you stay focused on growing your exports while we handle the complexities.