Advance Authorisation License Clubbing: A Complete 2025 Guide to New Rules, Benefits & Compliance

The Advance Authorisation Scheme, governed by the Directorate General of Foreign Trade (DGFT), continues to be one of the most robust incentives for exporters in India. It allows the duty-free import of inputs used in the manufacturing of export goods. A crucial procedural tool that complements this scheme is Advance Authorisation License Clubbing—a mechanism that helps exporters consolidate multiple licences into one for ease of redemption, regularisation, and compliance.

With recent updates announced by the DGFT, it has become even more important for exporters to understand the latest guidelines on Advance Authorisation License Clubbing and how to fully leverage this option to maintain export momentum and meet obligations efficiently.

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What is Advance Authorisation License Clubbing?

Advance Authorisation License Clubbing is a provision under the Foreign Trade Policy (FTP) that allows two or more Advance Authorisations—issued by the same Regional Authority (RA)—to be merged into a single authorisation. This process is essential because it:

•⁠  ⁠Eliminates unnecessary delays in closure of multiple authorisations.

•⁠  ⁠Avoids penal charges for minor lapses in individual licences.

•⁠  ⁠Allows exporters to maintain consolidated input-output records.

•⁠  ⁠Simplifies DGFT and Customs audits or scrutiny.

•⁠  ⁠Provides a remedy for expired authorisations that have eligible exports and imports.

By merging their Advance Authorisations, exporters can also streamline their business records and maintain a better compliance posture.

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Latest Amendments by DGFT (2024 Update)

In Public Notice No. 40/2023 dated 12 February 2024, the DGFT simplified the procedure for Advance Authorisation License Clubbing, offering exporters a more extended and rationalised timeline for fulfilling export obligations.

Key Changes You Need to Know:

1.⁠ ⁠Issuance Window Extended:

·      Earlier: 18 months

·      Now: 24 months from the date of the earliest licence to be clubbed

2.⁠ ⁠Export Time Limit (Post Clubbing):

Only exports made within 48 months from the date of the earliest Advance Authorisation are counted.

3.⁠ ⁠Import Timeframe Restriction:

·      Imports made within 30 months of the earliest licence are eligible.

·      Imports outside this window will need regularisation under Para 4.49 of the Handbook of Procedures.

4.⁠ ⁠Inclusion of EO Period:

·      Clubbing is now allowed even when the Export Obligation periods differ between authorisations.

These amendments reinforce the practicality and flexibility of Advance Authorisation License Clubbing, encouraging exporters to maintain compliance without penalty.

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Eligibility & Conditions for Clubbing Advance Authorisations

The DGFT has laid down specific conditions for successfully executing Advance Authorisation License Clubbing, and exporters must be mindful of these:

•⁠  ⁠Same RA Clause: All Advance Authorisations must originate from the same Regional Authority.

•⁠  ⁠Export-Import Timeline Validity: Exports within 48 months, imports within 30 months.

•⁠  ⁠Issuance Gap: Authorisations must have been issued within 24 months of each other.

•⁠  ⁠Minimum Value Addition: Required as per FTP norms, post clubbing.

If an exporter holds multiple licences with overlapping inputs, Advance Authorisation License Clubbing can help consolidate these into a more manageable form for redemption.

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How to Apply for Advance Authorisation License Clubbing

1.⁠ ⁠Form to Use: ANF-4C – “Application for Clubbing and Closure of Advance Authorisations.”

2.⁠ ⁠Details Required:

·      Export data (Shipping Bills, Invoices, Customs records)

·      Import data (Bills of Entry, input details)

·      Payment proof (application fee)

3.⁠ ⁠Electronic Submission: Applications can be filed via the DGFT portal

Timely and accurate filing is key to ensuring that Advance Authorisation License Clubbing requests are processed without objections or delays.

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Special Notes: What You Must Remember?

•⁠  ⁠Clubbing Not Allowed: For licences issued prior to 31 March 2009.

•⁠  ⁠PRC Permission: If authorisations fall outside prescribed limits, exporters may approach the Policy Relaxation Committee (PRC) for specific approval.

•⁠  ⁠Common Inputs Only: Clubbing is allowed only when the same or similar inputs appear across all licences.

•⁠  ⁠Duty Drawback Issues: Licences with claimed drawback benefits are typically excluded from clubbing unless specified.

In such cases, Advance Authorisation License Clubbing becomes a technical tool requiring strategic application and expert guidance.

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Business Impact & Practical Insights

Many medium and large-scale exporters report greater documentation efficiency and faster DGFT closure processes when they utilise Advance Authorisation License Clubbing proactively. It is especially helpful in sectors like:

•⁠  ⁠Textiles & Apparel

•⁠  ⁠Engineering Goods

•⁠  ⁠Pharmaceuticals

•⁠  ⁠Chemicals & Petrochemicals

•⁠  ⁠Leather Goods and Footwear

Moreover, with the updated timelines and digital filing process, Advance Authorisation License Clubbing is now more accessible even for MSMEs entering global markets.

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How can A V International help you?

The new DGFT notifications make it clear that Advance Authorisation License Clubbing is no longer just a remedial tool—it’s a strategic advantage for exporters who deal in multiple consignments and inputs. It allows better inventory planning, smooths out policy hurdles, and provides an avenue for compliance even in tricky cases.

As India’s leading DGFT Consultants we can help you regularly evaluate your advance licence portfolio and look at opportunities for Advance Authorisation License Clubbing to simplify export obligation fulfillment. Not only can we evaluate advance authorization license clubbing opportunities but also help you club your multiple advance licenses and further obtain redemption for the same.