An Advance Authorisation is issued to allow duty free Import Exports of inputs, which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed/utilised in the course of their use to obtain the export product, may also be allowed under the scheme. DGFT by mean of public notice may exclude any product(s) from purview of advance authorization.

Duty Free imports of the mandatory spares upto 10% of CIF value of authorization value which are required to be exported / supplied with resultant product are allowed under advance authorization. Advance authorization are issued for inputs and export items given under SION. This can be also issued on the basis of adopt norms or self declared norms as per HBP V.1

Advance Authorisation for Annual Requirement
Advance Authorization can also be issued For annual requirement. Status Certificate holder and all other categories of exporters having past export performance (in preceding two years) shall be entitled for Advance A authorization For annual requirement. Entitlement in terms of CIF value of imports shall be upto 300% of the FOB value of physical export and / or FOR value of deemed export, in preceding licensing year or Rs 1 crore, whichever is higher.