Invalidation of Advance Authorisation Scheme and All You Need to know

What is Invalidation of Advance Authorisation?

• An Advance License Holder in India can use inputs from domestic suppliers instead of importing them directly, with the help of an Invalidation Letter. 
• Additionally, the Invalidation Letter allows the domestic supplier to receive Advance Intermediate Authorisation, which allows them to source duty-free inputs and fulfill obligation by supplying the same to the Advance License Holder.
• Essentially, the Invalidation Letter is a way for domestic suppliers to receive an exemption on duties for inputs they provide to another manufacturer, who has Advance Authorization.

How to apply for Invalidation of Advance Authorisation?

• To invalidate an Advance Authorization or DFIA, one must first go to the “Services” section and then select “Advance Authorisation/DFIA” and then “Invalidation of Advance Authorisation”. 
• Then, the applicant must choose to either create a new application or work on a draft application. If creating a new application, the applicant must select which authorization they want to invalidate. 
• After that, the applicant must fill out the application form, make the necessary payment, and submit the application.

What are the documents required for Invalidation of Advance Authorisation?

Below are the documents needed for obtaining Invalidation of Advance Authorisation:

1. Purchase Invoice of the Domestic Supplier
2. Industrial License of the Domestic supplier (MSME/Udyam Registration/IEM License)
3. Valid IEC Copy of the Domestic Supplier
4. Advance Authorisation License of the Advance Authorisation Holder
5. BG/LUT Bond
6. Export House Certificate (if available)
7. Domestically procured item details and quantity

How can we help?

A V International is one of the leading and oldest DGFT/Customs Consulting firm operating pan India. Established in 1991, our company is headquartered in Mumbai. Our company specializes in Advance Authorization cases; we can help in obtaining Advance License and also obtaining redemption/closure of the same with bond/bank guarantee cancellation. Additionally, we help in obtaining EOP Extension, Revalidation, Invalidation, Amendment, Clubbing of Advance Authorisation for our clients.