Advance Authorisation Scheme: Duty-Free Import

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Advance Authorisation Scheme: Duty-Free Import

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Advance Authorisation Scheme: Duty-Free Import

India relaxes the sugar stockholding limit for bulk consumers from 15 days to 30 days, subject to sourcing stock beyond 15 days exclusively from imports under the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ). The relaxation links additional stocking to specific import mechanisms administered under India’s trade framework.

Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ): 

Dimension Key Details
TRQ (definition) TRQ is a mechanism that allows a set quantity of specific products to be imported.
AAS (core provision) AAS provides for duty free import of inputs, which are physically incorporated in an export product.
Implementing authority DGFT implements AAS under the Foreign Trade Policy.
Validity Advance Authorization is valid for 12 months from the date of issue of such Authorization.
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Q 1 / 2

With reference to the policy change on sugar stockholding for bulk consumers, consider the following statements:

1. Stockholding up to 30 days is permitted for bulk consumers.
2. Stock beyond 15 days must be sourced exclusively from imports under the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ).

Which of the statements given above are correct?

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Answer: C. Both 1 and 2