Advance Authorisation (AA) Scheme

The Advance Authorisation Scheme, commonly known as the AA scheme, is an export promotion initiative of the Government of India that allows exporters to import raw materials and inputs required for manufacturing export goods without paying customs duty. This scheme improves liquidity, reduces production costs, and strengthens India’s export competitiveness by removing the burden of upfront import duties on exporters.

Before reviewing the detailed advantages, it is helpful to understand how the scheme directly supports exporters at both the operational and financial level.

• Allows duty-free import of raw materials, components, consumables, and packing materials required for export production

• Reduces overall manufacturing cost, improving price competitiveness in global markets

• Exempts IGST and Compensation cess

• Improves cash flow by eliminating upfront customs duty payments

• Covers both physical exports and deemed exports

• Applicable to merchant exporters and manufacturer exporters

• Facilitates smoother working capital management

• Supports growth of MSMEs and large exporters alike

• Encourages higher export volumes and stronger international presence

Understanding eligibility ensures exporters apply correctly and avoid delays during approval.

• Applicant must hold a valid Importer Exporter Code (IEC)

• Must be engaged in the manufacture and export of eligible products

• Must comply with Standard Input Output Norms (SION) or provide self-declared norms

• Must fulfill the prescribed export obligation within the specified timeframe

• Must possess a valid RCMC from the relevant Export Promotion Council

A complete and accurate documentation set helps accelerate application processing.

• IEC certificate

• PAN card

• Export order or Letter of Credit

• Manufacturing process details

• Input–output norms (SION or self-declared)

• RCMC certificate

• GST registration certificate

• Company incorporation or partnership documents

• Bank details and cancelled cheque

The application process is fully digital and handled through the Directorate General of Foreign Trade (DGFT) portal. Following these steps ensures smooth submission:

1. Visit the DGFT portal: https://www.dgft.gov.in

2. Register your exporter account and log in

3. Navigate to ‘Advance Authorisation/DFIA’ from the ‘Services’ menu

4. Click on the ‘Apply for Advance Authorisation Schemes’ button

5. Log in or register using your email ID and other relevant details

6. Validate the log in using an OTP

7. Complete the online application form

8. Upload required documents

9. Pay the applicable government fee

10. Submit the application electronically

11. Track application status through the DGFT dashboard

The Advance Authorisation Scheme remains one of India’s most powerful export incentives, enabling businesses to reduce costs, improve liquidity, and scale international operations efficiently. When aligned with strategic funding solutions, such as choosing to get a business loan, exporters can unlock faster growth, stronger production capacity, and long-term global competitiveness.

PMKVY continues to play a crucial role in expanding India’s skilled workforce by offering structured training, industry-aligned curricula and clear pathways for growth. As more candidates gain practical capabilities across sectors, the scheme supports both individual progress and broader economic development. For those aiming to convert their skills into enterprise opportunities, accessing additional support such as an online business loan could further accelerate their journey.