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

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. Advance Rulings are not appealable by the department or the applicant, under the Central Excise, Customs or Service tax law.

The scheme of Advance Rulings allows the following categories of applicants to seek an advance ruling :

1) Any person who is a non-resident setting up a joint venture in India in collaboration with a non-resident or a resident;

2) Any person who is a resident setting up a joint venture in India in collaboration with a non-resident;

3) A wholly owned subsidiary Indian company of which the holding company is a foreign company;

4) A joint venture in India, that is to say a contractual arrangement whereby two or more persons undertake an economic activity which is subject to joint control and one or more of the participants or partners or equity holders is non-resident having substantial interest in such arrangement;

5) A resident falling within any such class or category of persons as the Central Government may by notification in the official gazette specify in this behalf. The Central Government has specified the following categories of persons as being eligible to seek advance rulings:-
(a) Any Public Sector Company;
(b) Residents proposing to import goods under the project import facility (heading 9801 of the Customs Tariff) for seeking rulings under the Customs Act,1962;
(c) Residents proposing to import goods from Singapore under the Comprehensive Economic Co-operation Agreement for seeking rulings on origin of goods under the Customs Act, 1962;
(d) Resident Public Limited Company.
(e) Resident Private Limited Company.
(f) Resident firm.