Duty-free inputs
Advance Authorisation
Advance Authorisation
Import the raw materials for an export order without paying customs duty or IGST, on the condition that you export the finished goods.
Current status
In force under Chapter 4 of FTP 2023 (DGFT copy dated 20 Apr 2026).
dgft.gov.in ↗What you get
Duty-free import of inputs, including exemption from basic customs duty, IGST and compensation cess for physical and deemed exports. Minimum value addition is 15% (higher for some sectors, such as 50% for tea and 25% for spices).
Who can use it
Manufacturer exporters, or merchant exporters tied to a supporting manufacturer, whose product has a Standard Input-Output Norm (SION) or who get norms fixed by DGFT’s Norms Committee.
How to claim it
- Apply online on dgft.gov.in in form ANF-4A with the input-output details.
- Pay the fee: ₹1 per ₹1,000 of CIF value of imports (minimum ₹500, maximum ₹1 lakh), as in Appendix 2K.
- Register the authorisation at the port and import inputs duty-free.
- Export within the export obligation period and apply online for redemption (closure).
Watch out for
- Import validity and the export obligation period are set in the Handbook of Procedures (Chapter 4) — check them on your authorisation.
- If you miss the export obligation you pay the saved duty with interest.
- Exports made with AA inputs claim RoDTEP at the Appendix 4RE rates, not 4R.
Products it applies to
Free to exportTextiles & apparelCotton yarnBulk cotton yarn sold to weaving and knitting mills abroad; Bangladesh is by far the largest buyer.HS5205Exports 2025-26US$ 3.22 bn ↓4.1%
Free to exportTextiles & apparelReadymade garmentsKnitted and woven clothing for brands and retailers; the USA, UK, UAE and the EU are the big buyers.HS6109.10Exports 2025-26US$ 15.8 bn ↓1.2%
Free to exportTextiles & apparelHome textiles (bed, bath and kitchen linen)Bedsheets, towels and kitchen linen for retailers; the USA buys more than half of India's exports.HS6302Exports 2025-26US$ 2.01 bn ↓5.7%
Free to exportTextiles & apparelCarpets and rugsHand-knotted, tufted and flat-woven rugs from Bhadohi, Jaipur and Panipat; the USA buys over half.HS5701Exports 2025-26US$ 1.97 bn ↓5.9%
More schemes
All schemes →- Duty-free inputsEPCGExport Promotion Capital Goods SchemeImport machinery at zero customs duty if you export goods worth six times the duty saved, within six years.Read →
- Tax refundRoDTEPRemission of Duties and Taxes on Exported ProductsRefunds hidden taxes (fuel, electricity duty, mandi tax, stamp duty and the like) that are not refunded any other way, as a percentage of FOB value.Read →
- Tax refundRoSCTLRebate of State and Central Taxes and LeviesThe RoDTEP-like rebate for apparel, garments and made-ups (HS Chapters 61, 62 and 63). These items get RoSCTL instead of RoDTEP.Read →