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Features Of Duty Free Advance Licence For Intermediate
Supply
I DEFINITON :
A An Advance Licene is issued under Duty Exemption Scheme
to allow import of
inputs, which are Physically incorporated
in the export product(making normal
allowance for wastage). In addition fuel,
Oil, energy,Catalyst etc which are
consumed in the course of their use to obtain
export product.
B Advance Licence can be issued for Physical Exports,
Intermediate Supplies for
Exports and Deemed Exports and can be granted
to a merchant-exporter or
manufacturer-exporter for the import of
inputs required for the manufacture of
goods
II HIGHLIGHT FOR ADVANCE LICENCE FOR INTERMEDIATE SUPPLIES
A Advance Licence can be issued for Intermediate Supplies
may be taken on the
basis of a tie-up Agreement with the exporter
holding an Advance Licence for
physical exports/deemed exports, Annual
requirement for physical exports/deemed
exports
B Advance Licence may be issued for intermediate supply to
a manufacturer- exporter for the import
of inputs required in the manufacture of goods
to be supplied to the ultimate exporter/deemed exporter holding
another Advance Licence.
C Advance Licence for Intermediate Supply shall be be issued
after making the licence invalid for direct
import of item to be supplied by the intermediate manufacturer.
In such cases, a copy of the invalidation letter will be given to
the licence holder and copy thereof will
be sent to intermediate supplier as well as licensing
authority of the intermediate supplier.The licencee in such case
has an option either to supply the intermediate
product to holder of Advance Licence for Physical
Exports / Deemed exports/Annual requriement or to export directly
III FEATURES :
A Advance Licence can be issued for Physical Exports,
Intermediate Supplies for
Exports and Deemed Exports and can be granted
to a merchant-exporter or
manufacturer-exporter for the import of
inputs required for the manufacture of goods
B Advance Licences for Physical export are exempted from
Basic Customs Duty,
Surcharge, Additional Customs Duty, Anti-Dumping
Duty & Safeguard Duty,
C Advance Licences for Intermediate Manufacturer are exempted
from
Basic Customs Duty, Surcharge, Additional
Customs Duty
and not from Anti-Dumping Duty and Safe-guard
Duty
D Advance Licence for deemed export is exempted only from
Basic Customs Duty, Surcharge, Additional
Customs Duty and not from Anti-Dumping Duty and Safe-guard
Duty
E All these licences are now subjected to actual user
condition and are made non
Transferable or material imported thereunder is
not transferred even after completion of
export obligation.
F Both Merchant and manufacturer Exporters are eligible for
Adv Lic Scheme
G Any item except those appearing in the negative list of
imports shall be allowed to
import
H Advance Lic Scheme is operated for both Adhoc/Notiied Normsfixed
by Ministry of
Commerce
I Application fee is Rs. 2/- per thousand for Duty Entitlement
Credit
J Adv Lic is valid for 18 months. No revalidation is allowed
K Pre and Post Export Advance Licence is non transferrable
L Third Party Exports are also admissible
M In addition Duty free IMPORT/Procurement of fuel, oil,
energy, catalysts etc.
N Exports to Rupee Currency Area shall also quality for Duty-free
Licence subject to
prevalent rules & regulations.
O Revalidation of expired Advance licence where export obligations
has been completed by 6 Months
P The facility of back to back LC for Advance Lic which is
presently confined to one
bank and one Branch extended to cover any
bank and branch
Q Advance Licene and the relevant DEEC Book shall specify
the following
Q1 The name and description of the items to be imported and exported.or
supplied
Q2 Quantity of each item to be imported or wherever the quantity
cannot be indicated, the value of
the item. Shall be indicate.However, if in Standard input Out
put Norms, the quantity and value of the individual inputs is the
limited factor, the same shall be
applicable
Q3 The aggregate CIF value of imports.
Q4 The FOB/FOR value and quantity of export/supplies
R Service Charge
R1. Service Charge on CIF Value of License : 4% of CIF Value
R2 Advance Cheque Favouring : Rs 10000/-
Bigis Impex Consultancy
If you have any queries, please feel free to call or fax us.
Thanking You,
Yours faithfully,
Impex Solution
Auth Sign(BHARAT PAREKH)
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