Advance Authorization in India: Invalidation Letter vs ARO Explained with Simple Examples
If you are an exporter in India, you may already be using the Advance Authorization (AA) scheme. This scheme allows you to import raw materials without paying customs duty, as long as you use those materials to make export products.
But here is something many exporters do not know:
You do not always need to import.
You can also buy from Indian suppliers and still get the same benefit.
For this, the government provides two options under the Directorate General of Foreign Trade system:
- Invalidation Letter
- Advance Release Order (ARO)
This blog explains both in very simple language with examples.