IGCR vs Advance Authorisation comes down to one question: are you selling your output domestically or exporting it? Both let you import inputs at reduced or nil duty, but they serve fundamentally different purposes. IGCR is a customs duty concession for goods put to a domestic end use, with no export obligation. Advance Authorisation is an export promotion scheme that allows duty-free import of inputs specifically because you will export the finished product. If you export, Advance Authorisation is usually the fit. If you consume the imports for domestic manufacture or an eligible service, IGCR is the route.
The two schemes sit under different authorities and different logic. IGCR operates under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, administered through customs and ICEGATE, and its condition is genuine end use, not export. Advance Authorisation is a DGFT scheme under the Foreign Trade Policy, and its condition is fulfilment of an export obligation within a set period, tied to standard input-output norms.
In short, IGCR asks “did you use the goods as declared?” while Advance Authorisation asks “did you export the finished goods you promised?”
The scale of the Advance Authorisation commitment is concrete: it requires a minimum value addition of 15% on the imported inputs, with the export obligation generally to be fulfilled within a defined period tied to the authorisation. IGCR imposes no such value-addition or export target at all; its only condition is genuine end use within the period the notification allows.
IGCR suits businesses that import inputs or capital goods to make products sold within India, or to deliver an eligible domestic service. Because there is no export obligation, you avoid the risk of penalties for failing to export, and the compliance is centred on proving consumption you would record anyway. For a domestic manufacturer with no export plans, IGCR is generally simpler and lower-risk.
If your business model is export-led, Advance Authorisation typically delivers a broader duty exemption on inputs and is purpose-built for your situation. The trade-off is a binding export obligation: you must export the resulting goods within the allowed period and meet value-addition norms, or face duty and penalty. For committed exporters with predictable order books, that obligation is manageable and the benefit is larger.
The two are not mutually exclusive across a business, but they cannot both apply to the same consignment of inputs. A company with both domestic and export lines might use IGCR for its domestic-use imports and Advance Authorisation for its export-bound production, keeping the two clearly separated in records. The key is that a given lot of imported inputs is claimed under one scheme, not both.
The IGCR vs Advance Authorisation choice is rarely about which scheme is objectively better; it is about matching the scheme to where your output goes. Getting it wrong is costly, because an export obligation taken on unnecessarily, or a domestic sale made on export-scheme inputs, both create liabilities. Our team helps importers map their trade flow to the right scheme. See the IGCR clearance service or contact [email protected] or +91 91673 79073.
IGCR is administered by customs via ICEGATE, while Advance Authorisation is a DGFT scheme under the Foreign Trade Policy.
The IGCR vs Advance Authorisation difference is export obligation: IGCR is a customs concession for domestic end use with none, while Advance Authorisation is a DGFT export scheme requiring exports.
No. IGCR has no export obligation. Advance Authorisation requires a minimum 15% value addition and export within a defined period.
IGCR, because there is no export obligation and compliance centres on proving consumption you already record.
Advance Authorisation typically gives a broader duty exemption on inputs for export production.
Across a business yes, but not on the same consignment of inputs. Each lot is claimed under one scheme.
