Advance rulings enable foreign investors to know in advance into certainty their Customs duty liability on them proposed imports into India and proposed exports from India.

Relevant provisions for obtaining an advance ruling are contained in Chapter V-B in the Customs Act, 1962.

The Customs (Advance Rulings) Rules, 2002 notified vide notification Nos. 55/2002-Customs (N.T.) dated 23^rd August, 2002 and amended vide notification Nos. 54/2003-Customs (N.T.) dated 23^rd July, 2003 and  notification Nos. 21/2007-Customs (N.T.) dated 6^th March, 2007 provide for the format to be used for filing an application.

Procedure Regulations of the Authority (AARUL CESTAT) have also been notified vide notification No. 1/2005-AAR dated 7^th Jan., 2005.

The scheme   of   Advance    Rulings   allows   a   non-resident investor setting up a joint venture in India in collaboration with a non-resident or a resident; or a resident  setting up a joint venture in India in collaboration with a non-resident; or a  wholly owned subsidiary Indian company, of which the holding company is a foreign company; or a joint venture in India; or a resident falling within any such class or category of persons as notified by the Government of India in this   behalf ,  to seek in advance, a ruling from the Authority for Advance Rulings.  

Classification of goods under the Customs Tariff Act, 1975;

Principles of valuation under the Customs Act, 1962;

Applicability, of notifications issued in respect of duties under the Customs Act, 1962, Customs Tariff Act, 1975 and any duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under the Customs Act.  having a bearing on the rate of duty;

determination of origin of the goods in terms of the rules notified under the Customs Tariff Act, 1975 and matters relating thereto.