Paragraphs 4.00 to 4.03 and 4.05 of the Foreign Trade Policy, 2023: Advance Authorisation, the four bases on which it is issued and who can apply, with Handbook paragraphs 4.01 to 4.04, 4.08, 4.09 and 4.26

Paragraphs 4 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Chapter 4 of the Policy begins with its objective, lists the schemes it covers, says which version of the policy applies to an authorisation, and then defines the Advance Authorisation in paragraph 4.03: import of inputs without payment of duty, on one of four bases. Paragraph 4.05 says who may apply and for which kinds of export or supply. The Handbook adds the online application, two special endorsements and the description of an authorisation.

This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. The procedure is taken from Chapter 4 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Notifications and Public Notices should be checked. A new exporter must first have an IEC registration before any application can be filed.

An Advance Authorisation allows import of inputs physically incorporated in the export product (with normal allowance for wastage) without payment of duty, and also fuel, oil and catalyst consumed in production (paragraph 4.03(a)). It is issued on one of four bases: Standard Input Output Norms, self declaration, applicant-specific prior fixation of norms, or the Self Ratification Scheme (paragraph 4.03(b)). It is issued to a manufacturer exporter or a merchant exporter tied to a supporting manufacturer (paragraph 4.05(a)).

Paragraph 4.00: objective

The schemes under Chapter 4 enable the import of inputs for export production without payment of duty, including replenishment of inputs and duty remission. The objective is stated in one sentence.

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Paragraph 4.01: the schemes in the chapter

Paragraph 4.01 lists four heads.

This article is on the Advance Authorisation. The other schemes are explained in their own articles in this series. Rates under RoDTEP, RoSCTL and drawback are not given here. For the wider picture, see our guide on duty exemption schemes: Advance Authorisation, DFIA, drawback, EPCG and RoDTEP.

Paragraph 4.02: which policy applies

An authorisation under Chapter 4 is issued in accordance with the Policy and Procedures in force on the date of issue of the authorisation. The paragraph speaks of the date of issue, not the date of application, and it says nothing about changes made after an authorisation has issued.

Paragraph 4.03: Advance Authorisation

Paragraph 4.03(a): what it allows

An Advance Authorisation is issued to allow import, without payment of duty, of an input that is physically incorporated in the export product, making normal allowance for wastage. In addition, fuel, oil and catalyst that are consumed or utilised in the process of production of the export product may also be allowed.

Paragraph 4.03(b): four bases

The authorisation is issued for inputs in relation to the resultant product on one of these bases:

1. (i) Standard Input Output Norms (SION) notified and available in the Handbook;
2. (ii) self declaration, as per paragraph 4.07 of the Handbook;
3. (iii) applicant-specific prior fixation of the norm by the Norms Committee, as per paragraph 4.06 of the Handbook; or
4. (iv) the Self Ratification Scheme, in terms of paragraph 4.06 of the Policy.

The paragraph does not say which basis is better for an applicant; it lists them as alternatives. SION entries are not given in this article. Our guide on Advance Authorisation inputs, SION and minimum value addition explains the usual use of norms.

The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 and names no other section here; see our article on section 5 of the FTDR Act.

Paragraph 4.05: eligible applicant, export or supply

• (a) An Advance Authorisation can be issued either to a manufacturer exporter or to a merchant exporter tied to a supporting manufacturer.
• (b) An Advance Authorisation for pharmaceutical products manufactured through a Non-Infringing (NI) process, as indicated in paragraph 4.18 of the Handbook, is issued to a manufacturer exporter only.
• (c) It is issued for physical export (including export to a Special Economic Zone), intermediate supply, and supply of goods to the categories mentioned in paragraph 7.02(b), (c), (d), (e), (f) and (g) of the Policy. It is also issued for supply of stores on board a foreign-going vessel or aircraft, on condition that there is a specific SION for the item supplied.

What the Handbook requires

Paragraphs 4.01 to 4.04: policy pointer, filing and form

Paragraph 4.01 says the policy on duty exemption and remission schemes is in Chapter 4 of the Policy. Under paragraph 4.02, an application for an Advance Authorisation, a Special Advance Authorisation for apparel, an Advance Authorisation for Annual Requirement or a DFIA is filed online, digitally signed, by the IEC holder with the jurisdictional Regional Authority as per Appendix 1A. The applicant can be the registered office, head office, a branch office or a manufacturing unit of the IEC holder. The applicant uploads the documents prescribed in ANF 4A, if any; no physical copy is required. Under paragraph 4.03, a branch office or manufacturing unit applicant has its name in the electronic RCMC and the IEC. Under paragraph 4.04, ANF 4A is used whether SION, ad hoc norms or self declaration under paragraph 4.07 applies. ANF 4A and Appendix 1A are named only.

Paragraph 4.08: three controlled inputs

Where Acetic Anhydride, Ephedrine or Pseudo-ephedrine is required as an input, the application is filed online and a printed copy is simultaneously endorsed to the Drug Controller of India, the Narcotics Commissioner and the respective Zonal Director of Narcotics Control Bureau. The applicant declares that it will maintain prescribed records and file prescribed returns. The Regional Authority endorses a copy of the authorisation to the three agencies and a condition that a No Objection Certificate be obtained from the Drug Controller and the Narcotics Commissioner before imports.

Paragraph 4.09: Sanitary Import Permit

Where meat and meat products, eggs and egg powder, milk and milk products, embryos, ova or semen, or pet food of animal origin is sought as an input, the Regional Authority endorses a condition that a Sanitary Import Permit be obtained from the Department of Animal Husbandry, Dairying and Fisheries before imports, and sends that Department a copy of the authorisation.

Paragraph 4.26: description of an authorisation

An Advance Authorisation specifies, among other things: names and description of items to be imported and exported or supplied, with specifications where applicable; the quantity of each item to be imported or, where quantity cannot be indicated, the value; the aggregate CIF value of imports; the FOB or FOR value and quantity of exports or supplies; and the validity period of import and the Export Obligation Period. The periods themselves are in other paragraphs; this paragraph names them as items to be specified.

The Handbook rests on the Director General's power described in our article on section 6 of the FTDR Act.

A worked example

Lotus Garments Private Limited, an invented manufacturer exporter, wants to import fabric and trims without payment of duty to make shirts for export. Under paragraph 4.03(b) it can seek an Advance Authorisation on SION if a norm is notified for its product, or on self declaration or prior fixation if not. It files online in ANF 4A with the jurisdictional Regional Authority under Handbook paragraph 4.02. A merchant exporter that does not make shirts itself could apply only if tied to a supporting manufacturer, under paragraph 4.05(a).

Need help with an Advance Authorisation?

Choosing the basis, preparing the norms and filing in the right form decide how smoothly the authorisation issues. Our team can plan the filing with you; start with our IEC registration service if you do not yet hold a code.

Key takeaways

• Chapter 4 covers Advance Authorisation, DFIA, Duty Drawback, RoSCTL and RoDTEP (paragraph 4.01).
• The Policy and Procedures in force on the date of issue apply (paragraph 4.02).
• Four bases: SION, self declaration, prior fixation by the Norms Committee, Self Ratification (paragraph 4.03(b)).
• Manufacturer exporters, or merchant exporters tied to a supporting manufacturer, may apply (paragraph 4.05(a)).
• Handbook paragraphs 4.08 and 4.09 add special endorsements for controlled inputs and animal products.

Read next

• Paragraphs 4.04 and 4.04A of the Foreign Trade Policy, 2023: Advance Authorisation for spices and apparel
• Paragraph 4.06 of the Foreign Trade Policy, 2023: Self Ratification Scheme
• Advance Authorisation inputs, SION and minimum value addition
• DFIA against Advance Authorisation: the IGST difference

Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.