Advance Authorization Scheme (AAS) in Indian Export and Import
Advance Authorization Scheme (ASS) is an incentive provided by government to boost exports from the country. The Director General of Foreign Trade (DGFT) is the body responsible for implementing and overseeing the scheme. One very important thing to mention here is that concerned party availing or willing to avail all the financial benefits and incentives offered by the government need to keep themselves updated about the latest happenings. It is important as being a government run and supported scheme, it is prone to amendment, changes or abolition as per the government decision. Keeping oneself abreast of latest information will help you be on the right track and maximize your benefit from this incentive scheme.
Exporters under Advance authorization Scheme AAS, are allowed to import raw-materials and related inputs under 100% duty exemption schemes. The concerned exporter wishing to benefit from this scheme needs to approach Director General of Foreign Trade (DGFT), which falls under the Ministry of Commerce and Industry, as this is the body responsible for issuing licenses for this scheme. As and when the exporters fulfils all the licensing obligation and the DGFT is satisfied in this matter, the exporter can proceed to sell his products in the domestic market.
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Duty Exemption & Remission Schemes
Duty exemption schemes allow an exporter to import duty free input materials that will go into the making of finished products that will be exported. An Advance Licence is required to avail of this duty exemption scheme. A Duty Remission Scheme consisting of DFRC (Duty Free Replenishment Certificate) and (b) DEPB (Duty Entitlement Passbook Scheme) allows for post export replenishment/ remission of duty on raw materials that have been imported to make finished products intended for exports.
DFRC (Duty Free Replenishment Certificate) permits duty free replenishment of inputs that have been used to make products intended for export. DEPB (Duty Entitlement Passbook Scheme) allows drawback of import charges on the raw materials imported for usage in making finished export products.