Paragraph 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.
Paragraph 4.17 of the Policy is one sentence: the validity period for import under an Advance Authorisation, and its extension, are as prescribed in the Handbook of Procedures. The figures are therefore in paragraph 4.39 of the Handbook, and paragraphs 4.37 and 4.38 deal with raising or lowering the value of an authorisation and with the fee on that change.
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. Every application in this area is filed by an exporter holding a valid Importer-Exporter Code; our IEC registration service covers the code itself.
Paragraph 4.17 of the Policy hands the rule to the Handbook. Under paragraph 4.39 of the Handbook, import validity is 12 months from the date of issue (paragraph 4.39(a)); for Chapter 7 supplies it is the project duration or 12 months, whichever is later (paragraph 4.39(b)); and only one revalidation for twelve months is allowed for the rest (paragraph 4.39(c)). Value changes are filed in ANF 4D (paragraph 4.37(c)); the fee on an enhancement is on the difference in CIF value, up to a printed maximum of Rs 1,00,000 (paragraph 4.38).
What the Policy says: paragraph 4.17
Paragraph 4.17, headed "Validity Period for Import and its Extension", says that the validity period for import under an Advance Authorisation shall be as prescribed in the Handbook of Procedures. It states no period itself. Do not confuse the import validity with the export obligation period: the Policy sends the export obligation period to the Handbook as well, in paragraph 4.22, and that is explained in our article on paragraph 4.22 of the Policy and paragraphs 4.40 and 4.41 of the Handbook.
The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (section 5 of the FTDR Act); it leaves the period to the Handbook, which the Director General issues under section 6 (section 6 of the FTDR Act). The Policy is not a statute; the period binds through the Act and the terms of the authorisation.
What the Handbook requires
Paragraph 4.39: import validity and revalidation
| Sub-paragraph | Case | Rule |
|---|---|---|
| 4.39(a) | Advance Authorisation in general | Validity for import is 12 months from the date of issue of the authorisation. |
| 4.39(b) | Supplies under Chapter 7 of the Policy | Validity is co-terminus with the contracted duration of project execution, or 12 months from the date of issue, whichever is later. |
| 4.39(c) | Authorisations not covered by 4.39(b) | Only one revalidation, for twelve months from the expiry date. No further revalidation. The application may be submitted online to the concerned Regional Authority. |
Three points follow from the text.
- The 12 months run from the date of issue, not from the date of the first import.
- The project rule in 4.39(b) is for supplies of the kind that Chapter 7 of the Policy covers (deemed exports). Whether a supply qualifies is read from that chapter; see our articles on the deemed export paragraphs of the Policy.
- The one revalidation of 4.39(c) is not available to an authorisation that falls under 4.39(b). The paragraph speaks of "such authorisations" being limited to one revalidation, so a second request is refused whatever the reason.
Paragraph 4.37: enhancement or reduction in value
Under paragraph 4.37(a), the Regional Authority concerned, within its financial powers, may consider a request for:
- enhancement or reduction in the CIF value of an Advance Authorisation; and
- enhancement or reduction in CIF value, quantity of inputs, FOB value and quantity of exports.
There is a condition: the value addition after the enhancement must not fall below the minimum value addition stipulated for the export product in the Policy and the Handbook, and there must be no change in the input-output norms and in the Policy under which the authorisation was issued. For the value-addition rule itself, see our article on paragraphs 4.08 to 4.10 and 4.19 of the Policy.
Paragraph 4.37(b) allows a request for pro-rata enhancement in value and quantity either before or after exports. If the SION changes before the export of the product, the pro-rata enhancement is given after calculating the entitlement on the revised SION.
Paragraph 4.37(c) says the application for enhancement in CIF or FOB value, reduction in value, extension of the export obligation period or revalidation is filed online in ANF 4D to the concerned Regional Authority. ANF 4D is named only.
Paragraph 4.38: the fee on enhancement
The application fee for an enhancement is payable on the difference between the CIF values of the original and the final authorisation. No application fee is charged if:
- the value of the authorisation is being reduced; or
- the applicant has already paid the maximum fee of Rs 1,00,000 for an Advance Authorisation or DFIA.
The paragraph does not give the fee rate or slab for the difference; it is not stated here, and no fee outside the printed maximum should be assumed.
A worked example
Nair Textiles Private Limited, an invented manufacturer, receives an Advance Authorisation that is not a project supply. Its import validity is 12 months from that date (paragraph 4.39(a)). By the end of that period it has not imported all the entitled inputs, so it applies in ANF 4D for revalidation and receives one revalidation of twelve months from the expiry date (paragraph 4.39(c)). A further request later is not allowed. Separately, a buyer places a larger order, and Nair asks the Regional Authority to enhance the CIF value. The fee is computed on the difference between the original and enhanced CIF values (paragraph 4.38); if Nair has already paid the maximum fee of Rs 1,00,000 on this or another Advance Authorisation or DFIA, no fee is charged on the enhancement. The Regional Authority will not allow the enhancement if the value addition would fall below the minimum (paragraph 4.37(a)).
Need help with validity or revalidation?
Timing errors on an Advance Authorisation are expensive because a second revalidation is not available. If you are checking an exporter profile or an Importer-Exporter Code before an application, our IEC registration team can review it with you.
Key takeaways
- The Policy (paragraph 4.17) sends the validity period to the Handbook; the figures are in paragraph 4.39.
- Import validity is 12 months from the date of issue (paragraph 4.39(a)).
- Chapter 7 supplies: the project duration or 12 months, whichever is later (paragraph 4.39(b)).
- Only one revalidation for twelve months, and no further one, for authorisations outside 4.39(b) (paragraph 4.39(c)).
- Enhancement or reduction goes through the Regional Authority in ANF 4D, subject to minimum value addition and unchanged norms (paragraph 4.37).
- The fee on enhancement is on the difference in CIF values; none on reduction, or once Rs 1,00,000 has been paid (paragraph 4.38).
Read next
- Paragraph 4.22 of the Foreign Trade Policy, 2023: export obligation period and extension
- Handbook of Procedures, 2023 paragraph 4.36: clubbing of Advance Authorisations
- Paragraph 4.16 of the Foreign Trade Policy, 2023: actual user condition
- Advance Authorisation: export obligation, clubbing and the EODC
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.