The Advance Authorisation Scheme (AAS) was introduced in 1973 to facilitate the duty-free import of specific inputs for export production. These schemes allow duty-free imports, thereby reducing the cost of production and increasing competitiveness in global markets.
It is a new scheme launched by the Indian government to help merchants in their transactions. This Scheme assists in reducing the payment cycle time and also helps to speed up the transactions process. It also allows merchants to reduce their costs because they do not have to wait for days before getting paid and, thus, save money.
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The authorization holder can import the inputs required to manufacture dutiable finished goods free of duty.
An authorization holder can import the inputs required to manufacture dutiable finished goods free of duty when you are an authorization holder. The Scheme is available to various industries, including machinery and instruments, chemicals; pharmaceuticals; food and beverages; textiles, and leather products. This means that imports by an authorized person will be exempt from customs duties or taxes on entry into India as well as customs duty on manufacture/processing within India under this Scheme.
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Conditions that help with availing the benefits:
The inputs shall not be subject to payment of Integrated Tax and Compensation Cess under the IGST Act. The input goods are not required to be physically present in India during export. The two conditions are fulfilled if the goods are imported within six months of the date of export and exported within 12 months of their import. These two conditions apply to goods imported under license under the advance authorisation scheme.
The CFTs are required to be physically present in India at the time of import. However, if they do not fulfill these requirements, then they can obtain an exemption by applying with SEBI declaring that they will not be able to meet these requirements within a period specified by SEBI (i) six months from the date of export or (ii) twelve months from date of importation
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Duty-free import authorization is transferable through endorsement by customs.
You can transfer the license to another party. The authorization is transferable through endorsement by customs, and it can be transferred to another party with the same purpose, who has already received their license and has not yet used their rights.
However, the following rules apply:
These schemes allow duty-free imports, thereby reducing the cost of production and increasing competitiveness in global markets. In addition, these schemes also help grow jobs in the country by providing employment opportunities to people who were previously unable to find jobs due to a lack of experience or education. The Scheme also increases revenue for the government as it increases sales tax revenues because consumers purchase more products at cheaper rates than before.
The advance authorisation scheme allows the duty-free import of inputs for export production under certain conditions. The Scheme is designed to increase exports by allowing duty-free imports of inputs for export production under certain conditions.
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-Benefits of Advance Authorization Scheme of India to merchants
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-Merchants can get a refund of the GST paid on their purchases.
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-The GST paid on assets can be claimed as a refund by the merchants.
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-The merchants can withdraw the money from their accounts without hassle or delay.
If you are looking forward to getting a license under the advance authorisation scheme in India, consult with SCS and apply for an advance authorisation license. Expand your business with the best guidance and consultancy to continue with smooth and hassle-free business beyond boundaries.
