Full formGovernment & Exams
AACstands forAdvance Authorization Certificate
Full Form of AAC
What is AAC?
An Advance Authorization Certificate (AAC) is a document issued by the Directorate General of Foreign Trade (DGFT) under the Foreign Trade Policy (FTP) of India. It allows an exporter to import inputs such as raw materials, intermediates, components, or packaging materials without paying basic customs duty, integrated GST (IGST), or other applicable duties. The scheme is designed to boost the competitiveness of Indian exports by making imported inputs cheaper. AAC is typically used by manufacturers and merchant exporters who have a valid export order and intend to export finished goods within a specified time frame, usually 12 to 18 months. The certificate is issued on a self-declaration basis and is subject to post-export verification. The policy also permits duty-free import of fuel and other consumables required for production. For students of commerce, economics, or business administration, understanding AAC is crucial for topics related to export promotion schemes, balance of payments, and trade policy. Questions on AAC frequently appear in competitive exams like UPSC, SSC, and CA examinations, particularly in the context of India's foreign trade mechanisms and incentives for exporters. The scheme is periodically revised to align with global trade norms and domestic manufacturing goals.
AAC का फुल फॉर्म
अग्रिम प्राधिकरण प्रमाणपत्र
Example
The textile exporter obtained an AAC from DGFT to import polyester yarn duty-free for manufacturing garments destined for the US market.
AAC — frequently asked questions
What is the full form of AAC?
AAC stands for Advance Authorization Certificate, a document issued by DGFT to allow duty-free import of inputs for export production.
How to apply for an AAC under DGFT?
Exporters can apply online through the DGFT portal (dgft.gov.in) by submitting the application form, along with a valid export order and self-declaration. The certificate is issued within a few days.
What is the validity period of an Advance Authorization Certificate?
The AAC is typically valid for 12 months for import, extendable up to 18 months, and the export obligation must be fulfilled within 18 months from the date of issue.