An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed/ utilized to obtain export product, may also be allowed.
Under Advance authorization Scheme AAS, exporter can import raw-materials and related inputs under 100% duty exemption schemes. The importer has to approach DGFT who is the licensing authority under this category. Government fixes value addition as per the standard input-output norms. Once you fulfills the export obligation with the licensing authority, you can sell the manufactured products in domestic market.
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