With Shipzy, we have significantly reduced document errors, resulting in smoother customs clearance and improved customer satisfaction. It's easy to find all documents in one place. Show More
Tiles Exporter - Morbi
English
With Shipzy, we have significantly reduced document errors, resulting in smoother customs clearance and improved customer satisfaction. It's easy to find all documents in one place. Show More
Tiles Exporter - Morbi
Manage Advance Authorisation licences, validity, imported-input details, export invoice mapping and export obligation visibility from one connected system.
Shipzy helps exporters move Advance Authorisation management away from disconnected spreadsheets by maintaining licence records and connecting the relevant exports with the authorisation used for them.
What Is Advance Authorisation?
Advance Authorisation, commonly still referred to as an Advance License, is a duty-exemption scheme under India's Foreign Trade Policy.
It allows eligible exporters to import inputs duty-free when those inputs are used in the manufacture of products that will be exported. Normal wastage is allowed, and certain fuel, oil or catalysts consumed during production may also be covered where applicable.
Advance Authorisation may be issued based on mechanisms such as:
For exporters, obtaining the authorisation is only the beginning. The licence then needs to be monitored against imports, exports, validity dates and export-obligation fulfilment.
Advance Authorisation vs Advance License
The current DGFT terminology is Advance Authorisation.
However, many exporters, documentation teams and consultants still use terms such as:
For operational purposes, they generally refer to the Advance Authorisation scheme under Chapter 4 of the Foreign Trade Policy.
Shipzy can maintain the authorisation as a structured licence record and connect it with the export transactions that use it.
Why Advance Authorisation Management Becomes Difficult
A business may have several Advance Authorisations active at the same time.
Each authorisation can involve:
When these records are maintained in separate Excel sheets, licence files and shipment folders, management visibility becomes difficult.
The common question becomes:
"How much of this Advance Authorisation has already been utilised, and how much export obligation is still pending?"
Shipzy helps make that information easier to track.
Maintain a Central Advance Authorisation Master
Shipzy provides a structured master for maintaining Advance Authorisation information.
For every authorisation, teams can maintain key information such as:
Authorisation Number
Store the DGFT-issued Advance Authorisation number.
Issue Date
Record when the authorisation was issued.
Approval Date
Maintain the relevant approval information used by the business.
Import Validity
Track the period during which imports are allowed against the authorisation.
Export Obligation Period
Maintain the applicable export-obligation timeline separately.
Export Product
Record the resultant export product linked to the authorisation.
Permitted Inputs
Maintain the imported inputs associated with the authorisation.
Licence Status
Identify licences as active, under utilisation, completed, expired or requiring follow-up.
Supporting Documents
Keep relevant licence documents and supporting records available with the authorisation.
Advance Authorisation Import Validity
Under the DGFT Handbook of Procedures, the general validity period for imports under an Advance Authorisation is 12 months from the date of issue, subject to specific provisions and eligible revalidation rules.
Import validity and export obligation are different timelines.
Shipzy can keep these dates separately visible so teams do not confuse:
Import Validity
with
Export Obligation Completion
Export Obligation Period
The general period for fulfilling export obligation under an Advance Authorisation is 18 months from the date of issue, unless a different period applies under specific provisions. Certain project supplies and specified sectors can have different treatment
This makes date-level visibility important.
A licence may no longer be valid for new imports while its export-obligation tracking can still require attention.
Link Export Invoices to the Correct Advance Authorisation
While preparing an export invoice in Shipzy, the user can select the relevant Advance Authorisation against which the shipment is being exported.
The workflow becomes:
This creates a direct operational relationship between the licence and the export transaction.
Instead of trying to reconstruct the relationship months later, it is captured when the export is processed.
Know Which Exports Are Made Against Each Licence
A single Advance Authorisation may be used across multiple export shipments.
For example:
Advance Authorisation AA-2026-001
Linked exports:
Shipzy gives teams a licence-level view of the associated export activity.
This helps documentation, compliance and management teams understand how each authorisation is being utilised.
Track Imported Inputs Against the Authorisation
Advance Authorisation is based on the relationship between imported inputs and the resultant export product.
DGFT's policy requires duty-free imported inputs to be used in relation to the authorised export product, and certain input descriptions and quantities may need to align with the relevant export and customs documentation.
A structured Advance Authorisation record can therefore maintain visibility over:
This gives teams a clearer picture of licence utilisation instead of treating the authorisation only as a document number.
Input-to-Export Traceability
Advance Authorisation management becomes more useful when the business can connect:
For manufacturer exporters, this creates stronger operational traceability between the duty-free input and the export transaction.
Where Shipzy Inventory and Production are also used, the operational workflow can become even more connected.
SION and Input-Output Norms
Advance Authorisations are commonly issued against Standard Input Output Norms (SION) or another permitted norm-fixation route.
SION defines the relationship between inputs permitted for import and the resultant export product.
This makes it important for businesses to correctly maintain:
Shipzy can maintain these operational references around the authorisation so teams have clearer visibility when reviewing utilisation.
Minimum Value Addition
Advance Authorisation is also subject to value-addition requirements.
Under the current FTP framework, the general minimum value addition under Advance Authorisation is 15%, while specific products and sectors can have different requirements.
For example, FTP 2023 specifies a higher minimum value addition for certain categories, including 25% for spices and 50% for tea.
Exporters should therefore review the applicable authorisation, SION and policy conditions rather than assuming one percentage applies to every case.
Advance Authorisation for Spices Exporters
Advance Authorisation has specific provisions for spices.
Under the Foreign Trade Policy, duty-free import of spices under Chapter 9 is permitted for activities such as:
The scheme is not available merely for activities such as cleaning, grading or repacking of spices.
For spice manufacturers using Shipzy, the workflow can connect:
Manufacturer Exporters and Advance Authorisation
Advance Authorisation can be issued to a manufacturer exporter or to a merchant exporter tied to a supporting manufacturer, subject to the applicable scheme conditions.
For manufacturer exporters, Shipzy can connect the authorisation with a wider workflow:
This creates much stronger operational visibility than maintaining the licence independently from production and export execution.
Merchant Exporters and Supporting Manufacturers
Merchant exporters tied to supporting manufacturers can also be eligible under the Advance Authorisation framework.
In this case, operational visibility becomes important because the exporter may need to coordinate:
Shipzy can maintain the licence-to-export relationship while the business manages supplier and supporting-manufacturer workflows.
Advance Authorisation Reporting and Visibility
Shipzy can provide licence-wise reporting so teams can quickly review Advance Authorisation utilisation.
A typical view can include:
This gives compliance and management teams one place to review the operational position of each licence.
One View for Multiple Advance Authorisations
A growing exporter may have several authorisations running simultaneously.
For example:
AA-001
Export Product: Product A
Status: Active
Linked exports: 8 shipments
AA-002
Export Product: Product B
Status: Under Utilisation
Linked exports: 5 shipments
AA-003
Export Product: Product C
Status: Near EO Deadline
Linked exports: 11 shipments
Instead of maintaining separate spreadsheets for every licence, Shipzy provides a more structured licence-level view.
From Advance Authorisation to Export Obligation Visibility
1. Create Advance Authorisation Master
Enter the DGFT authorisation details.
2. Maintain Inputs and Export Product
Record authorised inputs, quantities and resultant export products.
3. Maintain Important Dates
Track issue date, import validity and export obligation timeline.
4. Import or Procure Inputs
Maintain relevant input utilisation information.
5. Create Export Invoice
Prepare the export transaction through Shipzy.
6. Select Advance Authorisation
Link the invoice with the relevant licence.
7. Complete Shipment
The export remains associated with that authorisation.
8. Monitor Utilisation
Review exported value, linked invoices, utilisation and pending position through reports.
Recommended Workflow Graphic
Headline:
From Duty-Free Input to Export Obligation Tracking
Reduce Dependency on Advance Licence Excel Sheets
Without a connected system, Advance Authorisation tracking often looks like:
This process becomes increasingly difficult as the number of authorisations and shipments grows.
Shipzy moves the licence relationship closer to the actual export transaction.
Input Accounting Matters
DGFT requires careful accounting of inputs under Advance Authorisation.
Where SION permits generic or alternative inputs, relevant input descriptions and quantities used in manufacturing can need to be reflected correctly in shipping documentation for redemption of the authorisation.
This makes accurate item, quantity and licence mapping important.
Shipzy's purpose is to help keep the operational records structured; the exporter remains responsible for ensuring the statutory documents and DGFT submissions meet the applicable requirements.
Advance Authorisation and Actual User Requirements
Advance Authorisation operates under conditions governing the use of imported inputs.
The imported materials are meant for the authorised export production and cannot simply be treated as unrestricted inventory.
For this reason, operational visibility should cover not only the licence number but also the relationship between:
Advance Authorisation Is Not Just a Licence Record
For operations teams, the authorisation should be connected to the actual export lifecycle.
Shipzy can connect:
This creates a more useful operational view than maintaining the Advance Licence only as a compliance document.
Better Visibility Before Licence Deadlines
Advance Authorisation monitoring should not begin only when the export obligation period is about to expire.
Teams should be able to identify:
Early visibility allows the compliance team to act before a licence becomes an urgent problem.
Advance Authorisation Across Teams
Compliance Team
Maintain authorisation details, validity, export-obligation dates and licence status.
Import / Purchase Team
Track authorised inputs and relevant import activity.
Warehouse Team
Maintain visibility of input receipts and available stock.
Production Team
Track consumption of inputs where Shipzy Production is used.
Export Documentation Team
Select the appropriate authorisation against relevant export invoices.
Management
Review utilisation, pending obligations and licences requiring attention.
Why Exporters Use Shipzy for Advance Authorisation Management
Shipzy helps connect Advance Authorisation compliance with actual export operations.
Instead of maintaining:
businesses can create a more connected view of:
Frequently Asked Questions
What is Advance Authorisation?
Advance Authorisation is a duty-exemption scheme that allows eligible inputs to be imported duty-free when they are used in producing goods for export, subject to applicable conditions and export obligations.
Is Advance Authorisation the same as Advance License?
Advance Authorisation is the current DGFT terminology. "Advance License" is an older and commonly used business term for the same type of scheme.
Who is eligible for Advance Authorisation?
Advance Authorisation can generally be issued to manufacturer exporters and merchant exporters tied to supporting manufacturers, subject to applicable Foreign Trade Policy conditions.
How long is Advance Authorisation valid for imports?
The general import validity period is 12 months from the date of issue, subject to specific provisions and permitted revalidation.
What is the export obligation period under Advance Authorisation?
The general export obligation period is 18 months from the date of issue, although different periods may apply to certain categories or project supplies.
What is SION in Advance Authorisation?
SION stands for Standard Input Output Norms. It defines permitted input requirements in relation to specified resultant export products and is one basis on which Advance Authorisation can be issued.
What is the minimum value addition under Advance Authorisation?
The general minimum value addition is 15%, although certain products and sectors have different requirements. FTP 2023, for example, specifies 25% for spices and 50% for tea.
How does Shipzy manage Advance Authorisation?
Shipzy can maintain Advance Authorisation records including licence numbers, important dates, authorised inputs, export product details and licence status.
Can users select an Advance Authorisation while creating an export invoice?
Yes. The relevant Advance Authorisation can be selected against the export invoice so that the transaction remains linked to that licence.
Can Shipzy show exports linked with an Advance Authorisation?
Yes. Licence-level reporting can provide visibility into associated export invoices and utilisation.
Can Shipzy manage multiple Advance Authorisations?
Yes. Multiple authorisations can be maintained separately with their respective inputs, validity, exports and status.
Does Shipzy replace DGFT Advance Authorisation compliance?
No. Shipzy supports licence records, operational mapping and reporting visibility. Applications, statutory declarations, redemption, EODC and other official processes remain subject to DGFT, Customs and applicable policy requirements.
Related Shipzy Solutions
Bring Advance Authorisation records closer to your actual import, production and export transactions.
Maintain licences, authorised inputs, important dates, export invoice mapping and utilisation visibility in one connected export operating system.
Book a Shipzy DemoSee how Shipzy can help your compliance and export teams manage Advance Authorisation with greater visibility and control.