Advance Authorisation will be issued for inputs in relation to the resultant product based on the following basis
1. As per Standard Input Output Norms (SION)
2. Self-Declaration 3. Applicant Specific Prior Fixation of Norms by Norms Committee 4. Self-Ratification applicable for AEO status holders.

Norms are fixed for various export products and the respective inputs needed for manufacturing the export products under 12 categories/ sectors. Advance Authorisations are granted to the exporters based on the norms specified in these categories / sectors.

In case of absence of the above norms, an exporter can apply for Advance Authorisation based on self-declaration. The exporter declares the amount of input required for manufacturing the export product depending on the process that he will implement and based on this self-declaration the RA will issue an Advance Authorisation. The exporter is allowed to import input goods without any duty with this authorization. The application will be forwarded to Norms committee for ratification. The norms committee will scrutiny the application and if there are any discrepancies the committee will inform the RA, and the Authorisation is modified based on the recommendations of the Norms Committee. Exporter will either get the benefit of getting additional inputs if declared less, or will have to pay customs duty if the declaration is more than the recommendation of the Norms Committee. Not all inputs are allowed for authorization under this option.

In case of absence of the norms the exporter has an option of applying for fixation of norms 1st and then apply for Authorisation. The authorization is then issued based on the norms fixed by the Norms Committee.

Only Authorised Economic Operators (AEO) can apply with this option. Where there is no SION/ Ad hoc Norms for an export product or where SION has been notified but exporter intends to use additional inputs other than the inputs notified in SION in the manufacturing process, the AEO can apply for Advance Authorisation through self-ratification. These cases will not be referred to the Norms Committee. Not all inputs are allowed for authorization under this option

1 Manufacturer exporter or merchant exporter tied to supporting manufacturer
2 Pharmaceutical products manufactured through Non-Infringing process shall be issued to Manufacturer exporter only

1 Physical exports (including exports to SEZ)
2 Intermediate Supply
3 Supply of goods to EOU /STP /EHTP /BTP
4 Supply of goods against EPCG
5 Supply of goods to projects financed by Multilateral or Bilateral Agencies / Funds
6 Supply of goods to projects approved by Finance ministry for zero duty from time to time 7 Supply of goods to United Nations or an International Organisation
8 Supply of goods to nuclear power projects

1 Under Self Declaration: Maximum CIF value will be as under

• Status Holders: upto 300% of FOB and / or FOR value of preceding year’s exports and / or supplies
• Others: upto Rs. 10 Cr or 300% of FOB and / or FOR value of preceding year’s exports and / or supplies whichever is higher

Exporters are supposed to fulfill “Export Obligation” for the inputs imported through Advance Authorisation. Obligation is the form of “Value Addition” achieved on the export product. Obligation period is set at 18 months from the date of issue of Authorisation. There are exceptions for supplies to projects in India or abroad and for items falling in category of defence, military store, aerospace, and nuclear energy. Extension in the export obligation period is also allowed by paying a compensation fee.