What is the difference between Advance Authorisation (Net-to-Net) and Advance Authorisation (Gross-to-Gross)?

Net-to-Net basis allows duty exemption calculated on the net weight or quantity of inputs required to produce the net weight of export goods, with minimal or no wastage allowance. Gross-to-Gross includes wastage and spillage norms, resulting in higher permitted import quantities. Net-to-Net is more economical for exporters with efficient processes and lower wastage.

How long is the Advance Authorisation valid?

Standard validity is 12 months from the date of issuance. The export obligation must typically be fulfilled within 12-24 months from the date of import, depending on DGFT's case-by-case directives. Extensions may be granted for genuine reasons if requested before expiry.

Can I import goods under Advance Authorisation if my export order is cancelled?

No. If the export order is cancelled or modified before fulfilling the export obligation, you must immediately notify DGFT and the customs authority. Imported goods cannot be used for domestic sale without payment of applicable customs duty and penalties. You may be debarred from future DGFT schemes if the cancellation is deemed fraudulent.

What happens if I fail to fulfil the export obligation linked to my Advance Authorisation?

DGFT will recover the duty exempted on imports plus interest at 15% per annum from the import date. Additionally, you may face debarment from DGFT schemes for a period of 1-3 years and potential action under the Customs Act, 1962, including penalties up to 10% of goods value.

Can service exporters or non-manufacturing units apply for Advance Authorisation (Net-to-Net)?

Generally, Advance Authorisation is designed for manufacturing exporters. Service exporters may be eligible only if they import equipment or consumables directly used in service delivery and can establish a clear net-to-net ratio. Each case is evaluated individually by DGFT based on the nature of service and input requirements. Non-manufacturing traders are typically not eligible unless they are adding significant value through processing.

Advance Authorisation (Net-to-Net)

Duty-free import scheme for Indian manufacturers. Understand Advance Authorisation Net-to-Net eligibility, application process, compliance requirements under FTP 2023-28.

Verify IEC validity and review eligibility criteria including export track record and manufacturing capability through DGFT guidelines
Prepare technical documentation supporting net-to-net input-to-output ratio calculations with reference to process flow and past performance data
Submit completed Advance Authorisation application on DGFT Prom-IS portal with all annexures and fee payment (INR 5,000-15,000)
Respond to DGFT queries and provide additional clarification or documentary evidence as requested during the 30-45 day review period
Receive digitally signed Advance Authorisation from DGFT specifying import quantity, export obligation, and validity period; proceed with customs clearance using the authorisation at port of import

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What is Advance Authorisation (Net-to-Net)?

Advance Authorisation (Net-to-Net) is a duty-free import scheme notified under Chapter 3 of the Foreign Trade Policy (FTP) 2023-28, administered by the Directorate General of Foreign Trade (DGFT). It permits manufacturers and exporters to import inputs (raw materials, components, and consumables) on a duty-free basis for use in the manufacture of export products, calculated on a net-to-net basis rather than gross-to-gross.

The "Net-to-Net" approach means the duty exemption is calculated based on the net weight of imports required to produce the net weight of the export product, eliminating wastage allowances in many cases. This scheme facilitates cost-competitive manufacturing by reducing the landed cost of imported inputs, enabling Indian exporters to remain globally competitive. The authorisation is issued by the DGFT regional offices and is valid for the specified quantity and value of imports linked to corresponding export obligations.

मूल्य निर्धारण

पैकेज	कीमत	विवरण
Standard	On request	Including document prep

प्रक्रिया

📋
Verify IEC validity and review eligibility criteria including export track record and manufacturing capability through DGFT guidelines
🔍
Prepare technical documentation supporting net-to-net input-to-output ratio calculations with reference to process flow and past performance data
📝
Submit completed Advance Authorisation application on DGFT Prom-IS portal with all annexures and fee payment (INR 5,000-15,000)
✅
Respond to DGFT queries and provide additional clarification or documentary evidence as requested during the 30-45 day review period
📤
Receive digitally signed Advance Authorisation from DGFT specifying import quantity, export obligation, and validity period; proceed with customs clearance using the authorisation at port of import

आवश्यक दस्तावेज़

Valid Import Export Code (IEC) certificate issued by CBIC with no debarment or suspension notice
Previous 12 months' export invoices and shipping bills demonstrating actual export track record or valid export orders
Manufacturing process document and technical specifications detailing input-to-output ratio calculations and net-to-net basis justification
Details of imported items with HS codes, quantity, and CIF value; export product specifications with anticipated value and HS classification
Auditor-certified financial statements and balance sheet for the preceding financial year or year-to-date if applicant is less than 12 months old
Bank Guarantee undertaking (if required by DGFT) or banker's certification, along with processing fee payment receipt

अक्सर पूछे जाने वाले प्रश्न

शुरू करने के लिए तैयार?

मुफ्त परामर्श और कस्टम कोट प्राप्त करें।

परामर्श लें

Advance Authorisation (Net-to-Net)

Duty-free import scheme for Indian manufacturers. Understand Advance Authorisation Net-to-Net eligibility, application process, compliance requirements under FTP 2023-28.

Verify IEC validity and review eligibility criteria including export track record and manufacturing capability through DGFT guidelines

Prepare technical documentation supporting net-to-net input-to-output ratio calculations with reference to process flow and past performance data

Submit completed Advance Authorisation application on DGFT Prom-IS portal with all annexures and fee payment (INR 5,000-15,000)

Respond to DGFT queries and provide additional clarification or documentary evidence as requested during the 30-45 day review period

Receive digitally signed Advance Authorisation from DGFT specifying import quantity, export obligation, and validity period; proceed with customs clearance using the authorisation at port of import

Google VerifiedBusiness

500+Export Clients Served

End-to-EndEXIM Support

What is Advance Authorisation (Net-to-Net)?

पैकेज

कीमत

विवरण

Standard

On request

Including document prep

प्रक्रिया

📋

Verify IEC validity and review eligibility criteria including export track record and manufacturing capability through DGFT guidelines

🔍

Prepare technical documentation supporting net-to-net input-to-output ratio calculations with reference to process flow and past performance data

📝

Submit completed Advance Authorisation application on DGFT Prom-IS portal with all annexures and fee payment (INR 5,000-15,000)

✅

Respond to DGFT queries and provide additional clarification or documentary evidence as requested during the 30-45 day review period

📤

Receive digitally signed Advance Authorisation from DGFT specifying import quantity, export obligation, and validity period; proceed with customs clearance using the authorisation at port of import

आवश्यक दस्तावेज़

Valid Import Export Code (IEC) certificate issued by CBIC with no debarment or suspension notice

Previous 12 months' export invoices and shipping bills demonstrating actual export track record or valid export orders

Manufacturing process document and technical specifications detailing input-to-output ratio calculations and net-to-net basis justification

Details of imported items with HS codes, quantity, and CIF value; export product specifications with anticipated value and HS classification

Auditor-certified financial statements and balance sheet for the preceding financial year or year-to-date if applicant is less than 12 months old

Bank Guarantee undertaking (if required by DGFT) or banker's certification, along with processing fee payment receipt

अक्सर पूछे जाने वाले प्रश्न

Advance Authorisation (Net-to-Net)

What is Advance Authorisation (Net-to-Net)?

मूल्य निर्धारण

प्रक्रिया

आवश्यक दस्तावेज़

अक्सर पूछे जाने वाले प्रश्न

संबंधित सेवाएं

श्रेणी के अनुसार

शुरू करने के लिए तैयार?

Advance Authorisation (Net-to-Net)

What is Advance Authorisation (Net-to-Net)?

मूल्य निर्धारण

प्रक्रिया

आवश्यक दस्तावेज़

अक्सर पूछे जाने वाले प्रश्न

संबंधित सेवाएं

श्रेणी के अनुसार

शुरू करने के लिए तैयार?