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Centre Extends Bulk Consumers’ Sugar Stockholding Limit via AAS Imports
The government relaxes the existing 15-day sugar stockholding limit for bulk consumers to 30 days. It mandates that any stock held beyond the 15-day limit is sourced exclusively from sugar imported under the Advance Authorisation Scheme (AAS).
Advance Authorisation Scheme and Sugar Stockholding Relaxation:
| Dimension | Key Details |
|---|---|
| Scheme provision | AAS allows duty free import of inputs, which are physically incorporated in an export product. |
| Additional permitted imports | AAS allows, in addition to inputs, packaging material, fuel, oil, and catalysts which are consumed or utilized in the process of production of export products. |
| Oversight authority | AAS is overseen by the Directorate General of Foreign Trade (DGFT). |
| Duties exempted | Inputs imported under AAS are exempt from duties like: Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping duty, Safeguard Duty, Transition Product-Specific Safeguard duty, Integrated tax, and Compensation Cess, subject to certain conditions. |
| Condition for issue | An export obligation is usually set as a condition for issuing Advance Authorization. |
| Coverage | Advance Authorization coverage comprises manufacturer exporters, and merchant exporters tied to supporting manufacturer(s). |
| Permitted for | Advance Authorization is issued for: physical exports; intermediate supply; supplies made to specified categories of deemed exports; and supply of ‘stores’ on board of a foreign-going vessel or aircraft, provided specific Standard Input Output Norms (SION) exist in respect of items supplied. |
| Validity | Advance Authorization is valid for 12 months from the date of issue of such authorization. |