How to obtain an Advance Release Order (ARO) from DGFT – All You Need To Know
What is an Advance Release Order (ARO)?
- An Advance Release Order (ARO) allows exporters who hold an Advance License to acquire inputs from domestic sources such as EOU, SEZ, STP, EHTP, or EPZ units instead of importing them directly.
- These transactions can be conducted in either foreign currency or Indian currency.
- To obtain an ARO, an application must be submitted to the appropriate Regional Licensing Authority.
- If an ARO and Advance License are issued simultaneously, the validity of the ARO will match that of the Advance License.
- An ARO for a specific product also allows the holder to obtain it from multiple domestic suppliers.
What is Advance License?
Advance authorisation is a scheme administered by the Directorate General of Foreign Trade (DGFT) in India. It allows Indian exporters to import certain specified goods duty-free, provided that they are used in the production of goods that are intended for export. The scheme is designed to help Indian businesses improve their competitiveness in international markets by enabling them to access raw materials and other inputs at lower cost.
To obtain an AA, exporters must submit an application to the DGFT, along with supporting documents such as proof of export orders and details of the goods to be imported. The DGFT will then review the application and, if approved, issue an advance authorisation certificate, which must be presented to customs authorities at the time of import.
What are the documents required for obtaining Advance Release Order (ARO)?
Below are the documents needed for obtaining Advance Release Order (ARO):
- Purchase Invoice of the Domestic Supplier
- Industrial License of the Domestic supplier (MSME/Udyam Registration/IEM License)
- Valid IEC Copy of the Domestic Supplier
- Advance Authorisation License of the Advance Authorisation Holder
- BG/LUT Bond
- Export House Certificate (if available)
- 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, Advance Release Order (ARO), Amendment, Clubbing of Advance Authorisation for our clients.
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