Advance Authorisation Scheme (AAS): A Comprehensive Guide
Introduction
The Advance Authorisation Scheme (AAS) is a significant initiative by the Government of India aimed at promoting the import of inputs for the production of export goods. This scheme was introduced under the Foreign Trade Policy (FTP) 2015-2020 and has been instrumental in facilitating India’s export-oriented manufacturing sector.
What is AAS?
AAS is a duty exemption scheme that allows duty-free import of inputs, which are physically incorporated in the export product. These inputs include raw materials, components, intermediates, consumables, and catalysts. The scheme also covers fuel, oil, and energy required for the production process.
Objectives of AAS
The primary objective of AAS is to make Indian products more competitive in the global market by reducing the cost of production. By allowing duty-free import of inputs, the scheme aims to promote the manufacture and export of high-quality goods.
Eligibility Criteria
To be eligible for AAS, exporters must meet certain criteria, including having an Import Export Code (IEC) and complying with the provisions of the Foreign Trade Policy and Handbook of Procedures. The scheme covers a wide range of sectors, including agriculture, textiles, chemicals, electronics, and more.
Benefits of AAS
The benefits of AAS are provided in the form of duty exemptions, which include:
- Exemption from Basic Customs Duty (BCD)
- Exemption from Additional Customs Duty (ACD)
- Exemption from Anti-Dumping Duty (ADD)
- Exemption from Safeguard Duty (SD)
How to Apply for AAS
Step 1: Register on DGFT Portal
- Visit the AAS Official Portal.
- If you do not have an account, you will need to create one by registering on the portal.
- Once registered, log in to your account using your credentials.
Step 2: Prepare the Required Documents
- Import Export Code (IEC)
- Digital Signature Certificate (DSC)
- Profile of Exporter on DGFT Portal
- Authorization Letter (if applicable)
- Details of Export Performance
Step 3: Fill the Application Form
- Navigate to the “Services” section on the DGFT portal.
- Select the “AAS” option and proceed to fill the application form (ANF 4A).
- Enter all required details such as IEC, export product details, and inputs to be imported.
- Upload the necessary documents as per the guidelines.
Step 4: Submit the Application
- Review the application form to ensure all details are correct.
- Submit the application form electronically through the DGFT portal.
- Pay the required application fee online.
Step 5: Track Application Status
- After submission, you can track the status of your application on the DGFT portal.
- You will receive updates and notifications regarding the progress of your application.
Step 6: Receive Authorization
- Once the application is approved, you will receive the AAS authorization electronically.
- You can then proceed with the import of inputs as per the authorization.
Implementation and Administration
AAS is notified by the Directorate General of Foreign Trade (DGFT) and implemented by the Ministry of Commerce and Industry. The scheme has been designed to be user-friendly, with provisions for online application and tracking of authorizations.
Recent Developments
In recent years, the government has made several changes to enhance the effectiveness of AAS. One significant change is the introduction of the Self Ratification Scheme, which allows exporters to self-certify the requirement of inputs, thus simplifying the authorization process.
Conclusion
The Advance Authorisation Scheme (AAS) has played a crucial role in promoting India’s export-oriented manufacturing sector by allowing duty-free import of inputs. With its user-friendly implementation and attractive benefits, AAS has helped Indian manufacturers compete effectively in the global market.
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