A textile exporter in Dharavi gets an urgent order from a buyer in Dubai. The raw materials needed — specific dyes, trims, and synthetic yarns — all attract import duty. He pays the duty, ships the goods, earns the foreign exchange, and then spends the next eight months chasing a duty drawback refund that arrives, partial and delayed, after three rounds of paperwork. A few kilometres away, a competitor with the same order structure pays *zero* import duty upfront — because he used an Advance Authorisation licence before placing the import order.
That gap in outcome? It comes down entirely to who guides you before the shipment moves.
What Advance Authorisation Actually Does for
Your Business?
The Advance Authorisation scheme under India's Foreign Trade Policy allows exporters to import inputs duty-free — no Basic Customs Duty, no IGST — provided those inputs are used in the manufacture of export goods. The licence is issued against a specific product and a defined Standard Input-Output Norm (SION), or against an ad-hoc norm where no SION exists.
Sounds straightforward. It rarely is.
DGFT norms, actual consumption ratios, export obligation timelines (typically 18 months), EODC filing, and post-export redemption — each stage carries its own compliance risk. A miscalculation in the input-output norms alone can trigger a demand notice worth lakhs.
Why the Right Consultant Changes Everything?
Advance Authorisation Consultants in Mumbai with genuine export-import expertise do more than file an application. They assess your product's HS code classification, map it against applicable SION norms, identify whether a self-declared norm is more beneficial, prepare the DGFT application with precise technical details, and track the licence through issuance. Post-export, they handle the EODC redemption so your obligation closes cleanly.
Sohamma International Pvt. Ltd. has built its practice around exactly this depth of work. Based in Mumbai, Sohamma International Pvt. Ltd. handles Advance Authorisation licences across sectors — pharmaceuticals, engineering goods, textiles, chemicals, and food processing — bringing hands-on DGFT experience to every file they manage.
Get Expert Guidance Before Your Next Import
Paying customs duty on inputs when you qualify for an Advance Authorisation is, simply put, leaving money on the table. Connect with Advance Authorisation Consultants in Mumbai at Sohamma International Pvt. Ltd. and structure your next export cycle the right way — from the first shipment, not the fourth.
Visit https://sohamma.com today.
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