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With reference to the Advance authorisation scheme, consider the following statements:
- It allows the duty-free import of inputs for manufacturing.
- The products under this scheme are not allowed to sell in the domestic market.
Which of the statements given above is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
With reference to the Advance authorisation scheme, consider the follo...
Advance Authorisation Scheme
The Advance Authorisation Scheme is an export promotion scheme launched by the government of India. It allows duty-free import of inputs required for manufacturing of export products. The scheme is aimed at encouraging exports by enabling manufacturers to import raw materials and other inputs without paying any duty.
Statement 1: It allows the duty-free import of inputs for manufacturing.
The first statement is correct. Under the Advance Authorisation Scheme, manufacturers can import inputs required for manufacturing of export products without paying any duty. The scheme allows duty-free import of raw materials, components, consumables, spares, and packing materials. This helps manufacturers to reduce their costs and improve their competitiveness in the global market.
Statement 2: The products under this scheme are not allowed to sell in the domestic market.
The second statement is also correct. The products manufactured using inputs imported under this scheme are meant for export only. They are not allowed to be sold in the domestic market. This condition is imposed to ensure that the benefits of the scheme are passed on to the export sector and not diverted to the domestic market.
Conclusion
In conclusion, both statements given in the question are correct. The Advance Authorisation Scheme allows duty-free import of inputs required for manufacturing of export products, and the products manufactured using these inputs are meant for export only. This scheme has been instrumental in promoting exports from India and has helped manufacturers to reduce their costs and improve their competitiveness in the global market.
The Advance Authorisation Scheme is an export promotion scheme launched by the government of India. It allows duty-free import of inputs required for manufacturing of export products. The scheme is aimed at encouraging exports by enabling manufacturers to import raw materials and other inputs without paying any duty.
Statement 1: It allows the duty-free import of inputs for manufacturing.
The first statement is correct. Under the Advance Authorisation Scheme, manufacturers can import inputs required for manufacturing of export products without paying any duty. The scheme allows duty-free import of raw materials, components, consumables, spares, and packing materials. This helps manufacturers to reduce their costs and improve their competitiveness in the global market.
Statement 2: The products under this scheme are not allowed to sell in the domestic market.
The second statement is also correct. The products manufactured using inputs imported under this scheme are meant for export only. They are not allowed to be sold in the domestic market. This condition is imposed to ensure that the benefits of the scheme are passed on to the export sector and not diverted to the domestic market.
Conclusion
In conclusion, both statements given in the question are correct. The Advance Authorisation Scheme allows duty-free import of inputs required for manufacturing of export products, and the products manufactured using these inputs are meant for export only. This scheme has been instrumental in promoting exports from India and has helped manufacturers to reduce their costs and improve their competitiveness in the global market.
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Community Answer
With reference to the Advance authorisation scheme, consider the follo...
Recently, the directorate general of foreign trade (DGFT) simplifies the composition fee for export obligation extension under the advance authorisation scheme.
- An advance authorisation scheme allows duty-free import of inputs, which have to be mandatorily used in products that are required to be exported within a specified time.
- They are not allowed to sell the products in the domestic market.
- Advance Authorization is valid for 12 months from the date of issue of such Authorization.
- The revised composition fee formula is based on a specific rate for different levels of the 'CIF (cost, insurance, freight) value of authorisation.
- The fees levied under these 3 slabs; at ₹5,000 for a cost, insurance, freight (CIF) value of advance authorization license valued at up to ₹2 crores, ₹10,000 for a value between ₹2 crore and 10 crores, and ₹15,000 for value over ₹10 crores.
- The simplification of calculations for composition fees helps in automation and faster service delivery by making the process more efficient and easier to understand.
Hence both statements are correct.
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With reference to the Advance authorisation scheme, consider the following statements: It allows the duty-free import of inputs for manufacturing. The products under this scheme are not allowed to sell in the domestic market.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the Advance authorisation scheme, consider the following statements: It allows the duty-free import of inputs for manufacturing. The products under this scheme are not allowed to sell in the domestic market.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Advance authorisation scheme, consider the following statements: It allows the duty-free import of inputs for manufacturing. The products under this scheme are not allowed to sell in the domestic market.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Advance authorisation scheme, consider the following statements: It allows the duty-free import of inputs for manufacturing. The products under this scheme are not allowed to sell in the domestic market.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
With reference to the Advance authorisation scheme, consider the following statements: It allows the duty-free import of inputs for manufacturing. The products under this scheme are not allowed to sell in the domestic market.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Advance authorisation scheme, consider the following statements: It allows the duty-free import of inputs for manufacturing. The products under this scheme are not allowed to sell in the domestic market.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Advance authorisation scheme, consider the following statements: It allows the duty-free import of inputs for manufacturing. The products under this scheme are not allowed to sell in the domestic market.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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