An Advance License, also known as an Advance Authorization, is a trade promotion scheme in India that is administered by the Directorate General of Foreign Trade (DGFT), which operates under the Ministry of Commerce and Industry. This license is a significant part of the country’s export-import policy and aims to encourage exports and facilitate the import of specific goods.

In order to boost the country’s exports, the government has implemented a range of schemes, and among these is the Advance Authorisation Scheme, also known as the Advance License. This scheme allows businesses to import essential raw materials and inputs required for the production of export goods without incurring any customs duties, making it a duty-free process. Additionally, certain items such as oil and catalysts, which are integral to the production of export products, may also be eligible for duty-free import under this scheme. As a condition for obtaining the Advance License, businesses are required to fulfill an Export Obligation.