Advance licence for exporters in India

Import the inputs for your export goods without paying customs duty or IGST. In return you export the finished goods within the set period. We apply for the licence and run it at the port. Once your exports are done we close it.

Advance Authorisation
Licence closedBond and bank guarantee released

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Is an advance licence right for you?

Pick what you do. Our team then checks it against your exports.

What fits your business?

An advance licence fits

Your inputs come in without customs duty or IGST. You export the finished goods within the set period. Your exports must reach the value addition the licence asks for.

It fits if you name your manufacturer

A merchant exporter can hold the licence. It names your supporting manufacturer. The inputs go to that plant.

Advance licence or MOOWR

An advance licence covers only the inputs for your exports. MOOWR puts off the duty on all your inputs and sets no export target. We help you weigh the two.

See the MOOWR licence

It fits only with a named manufacturer

The licence covers the inputs that go into your export goods. A trader can hold one if the manufacturer is named on it and uses the inputs. If you buy ready goods from many sellers an ordinary export fits better. We pack them and clear them at the port.

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What you need before you apply

An advance licence sits on top of your other registrations. It also rests on a norm: how much of each input goes into your product. If your product has none yet you can still apply on a norm you declare. DGFT then confirms it.

  1. IEC
  2. RCMCRCMC
  3. A norm, set or declaredNorm
  4. Advance licenceLicence

The papers you will need

Company papers

Your PAN, IEC and RCMC. Your GST certificate too if you are registered.

Your export product

What you export and its HS code.

The inputs

Each input with its quantity and value.

The norm

The standard input output norms (SION) for your product. Or its technical details if it has no norm yet.

Your plant

The plant that uses the inputs. A merchant exporter names its supporting manufacturer.

Certificates

A certificate from a chartered accountant, cost accountant or chartered engineer where your route asks for one. We arrange it.

Digital signature

The digital signature of the person who signs for your company.

Bond

Signed before your first import. Your record decides if a bank guarantee goes with it.

How we run your advance licence until it closes

We prepare and file each step with DGFT and customs. You sign where the law asks you to.

  1. We match your product to its norm and work out the inputs it allows.

  2. We file the application on the DGFT portal. Your signatory signs with a digital signature.

  3. We register the licence at your port. You sign the bond. Some exporters also give a bank guarantee.

  4. Our customs team clears your inputs. Each bill of entry draws on the licence.

  5. Your plant turns the inputs into export goods. We count each shipping bill against your obligation.

  6. We apply for your export obligation discharge certificate (EODC). Then we ask customs to cancel your bond and release your guarantee.

How we keep your licence on track

An advance licence stays open until DGFT and customs sign it off. Until then every import, export and payment must match it.

  • Inputs drawn on the licence

    Each import

    We clear each lot of inputs. Its bill of entry draws on what the licence allows.

  • Shipping bill details

    Each export

    We put the licence number and its inputs on each shipping bill. We write them just as the licence does.

  • Obligation tracker

    All the time

    We count each export against your obligation and tell you what is left.

  • Export money linked

    As payments arrive

    We link each shipping bill to your bank's proof of payment (e-BRC) on the DGFT portal.

  • Bank guarantee

    Before it runs out

    We remind you to renew it in good time. It must not run out while the licence is open.

  • Extensions

    If exports run late

    We ask DGFT for more time before the export period ends.

  • Consumption account

    After it closes

    We arrange a certificate from a chartered or cost accountant of what you imported and used. It goes to DGFT at the start of the year after your licence closes.

  • Closure

    At the end

    We apply for the EODC. We take it to customs so they release your bond and guarantee.

Where advance licences go wrong

Most closures get stuck on one paper that does not match the licence.

  • What goes wrong: A shipping bill leaves out the licence number or names an input another way.

    What we do: We copy the licence number and each input onto every shipping bill word for word.

  • What goes wrong: Inputs land at a port where the licence is not registered.

    What we do: We register the licence at the port your inputs use. If that port changes we get customs' permission first.

  • What goes wrong: The export period ends before you have exported enough.

    What we do: We watch the gap and ask DGFT for more time before the period ends.

  • What goes wrong: Duty paid on unused inputs never shows up at DGFT.

    What we do: We put your licence number and IEC on each ICEGATE payment so DGFT sees it at closure.

  • What goes wrong: Nobody applies for the EODC in time. DGFT can then call in your bond.

    What we do: We apply as soon as your exports and payments are linked.

  • What goes wrong: The EODC arrives but the bank guarantee stays with customs.

    What we do: We take the EODC to the custom house and follow it up until your bond is cancelled.

How our warehouses work with your advance licence

The licence ties the inputs to your plant and your exports. Here is where we fit around it.

  • Port to plant

    We clear your inputs at the port under the licence and truck them to your plant.

  • One set of papers

    The same team files with DGFT and at customs. So your licence, bills of entry and shipping bills all match.

  • Export loads

    We pack and load your export goods at our warehouse. Each shipping bill names your licence and its inputs.

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Frequently Asked Questions

Still have a question?

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What is an advance licence?
Advance licence is the common name for Advance Authorisation. This DGFT licence lets you import the inputs for your export goods without customs duty or IGST. In return you export the finished goods within the set period. For capital goods the scheme is EPCG.
Who can get an advance licence?
A manufacturer who exports can. So can a merchant exporter that names a supporting manufacturer, whose plant then uses the inputs. A manufacturer who supplies inputs to another licence holder can get one too. So can a supplier whose sales count as deemed exports. You need an IEC and an RCMC.
What is the export obligation period of an advance licence?
The licence gives you a set period to import the inputs. It gives a longer period to export the finished goods. Both start on the day DGFT issues it. If your exports run late DGFT can give you more time for a fee. We ask for it before the period ends.
Is advance licence transferable?
No. The licence and its inputs stay with you as the actual user. You cannot sell either one even after you close the licence. A Duty Free Import Authorisation (DFIA) is the one you can transfer once its exports are done.
How does advance authorisation work under GST?
Inputs you import under the licence pay neither customs duty nor IGST. Inputs you buy in India against the licence count as deemed exports under GST. Your supplier charges GST on them. Either of you can then claim it back.
What is SION in advance licence?
SION stands for standard input output norms. A norm says how much of each input goes into your product. DGFT uses it to set what your licence allows. If your product has no norm you have choices. We can ask DGFT to fix one first. Or you apply on a norm you declare and DGFT confirms it later. If DGFT has already approved another exporter's norm for the same product you may use it.
What is advance authorisation for annual requirement?
It covers a year of your exports instead of one export order. Its limit follows what you exported the year before. You can export any product in the same product group. You need a steady record of exports in recent years. It covers only products with a norm already set and no input on DGFT's pre-import list.
Can I get advance authorisation for deemed exports?
Yes. Deemed exports are supplies within India that count as exports. Examples are supplies to an export oriented unit or to some projects. The supplier can import the inputs for those supplies under the licence.
Do I need a bank guarantee for an advance licence?
You give customs a bond at your port. Whether a bank guarantee goes with it depends on who you are. Status holders, public sector units and exporters with a strong record often need none. Other manufacturers give one for part of the duty saved. Merchant exporters without that record give one for all of it. If you buy all your inputs in India the bond goes to DGFT instead.
Can I export first and import the inputs later?
Yes. Exports you ship after you apply can count. You then import the inputs to replace what you used. Some inputs must arrive first. The norm or DGFT's list names most of them. Fabric for garment exports, inputs that skip a quality control order and licences on a self-ratified norm also need their inputs first.
What if I cannot complete the export obligation?
You pay the customs duty on the unused inputs with interest. You pay it on ICEGATE. We put your licence number and IEC on the payment so DGFT can see it. Some cases add a charge you pay to DGFT: when the inputs were restricted or your value addition fell short. The licence can still close after that. If you imported nothing you can cancel it instead and claim drawback on your exports.
What is the advance licence closure procedure?
We link every shipping bill and its export money on the DGFT portal. We arrange a CA's certificate of what you imported and used. Then we apply for the EODC within the set period. Once DGFT issues it we take it to customs. Customs cancels your bond and releases your bank guarantee.