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Features Of Duty Free Advance Licence (FOR
Deemed Exports)
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| DEFINITON
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| 1 |
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 |
| 2 |
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 |
| 3 |
Advance Licence
can be issued for deemed export to the main contractor for import
of inputs required in the manufacture of goods to be supplied
to the categories mentioned in paragraph B, C ,D, E, F and G
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| 4 |
In addition, in
respect of supply of goods to specified projects mentioned in
paragraph D, E, F, and G of the Policy, an Advance Licence for
deemed export
can also be availed by the sub-contractor of the main contractor
to such project. Such licence for deemed export can also be
issued for supplies made to United Nations Organisations or
under the Aid Programme of the United Nations or other multilateral
agencies and paid for in foreign exchange |
| HIGHLIGHT FOR ADVANCE LICENCE
FOR DEEMED EXPORT : |
| Advance Licence
can be issued for deemed export to the main contractor for import
of inputs required in the manufacture of goods to be supplied
to the categories mentioned in paragraph B, C ,D, E, F and G |
| A |
Supply of goods against Advance Licence/DFRC
under the Duty
Exemption/Remission Scheme |
| B |
Supply of goods of Export Oriented Units(EOUs)
or units located in Export
Processing Zones(EPZS) or Special Economic Zone(SEZs)
or Software Technology Parks(STPs) or to Electronic Hardware
Technology Parks (EHTPs) |
| C |
Supply of capital goods to holders of licence
under the Export Promotion Capital Goods(EPCG) Scheme |
| D |
Supply of goods to projects financed by
world bank(IBRD and IDA) are entitled for Deemed Export benefits
or multilateral or bilateral agencies/funds as notified by the
department of Economic Affairs, Ministry of Finance under International
Competitive Bidding in accordance with the procedures
of those agencies/funds where the legal agreements provide
for tender evaluation without including the custom Duty |
| E |
Supply of capital goods including in unassembled/disassembled
condition as well
as Plants,machinery, accessories, tools,
dies and such goods which are used for
installation purposes till the stage
of commercial production and spares to the extent
of 10% of the FOR Value to fertilisers plants. |
| F |
Supply of goods to any project or purpose
in respect of which the Ministry of finances, by a notification
permit the import of such goods at Zero customs Duty coupled
with the extension of benefits under this chapter to domestic
supplies |
| G |
Supply of goods to the power and refineries
not covered in (f) above |
| H |
Supply of marine freight containers by
100% EOU (Domestic freight, containers - manufacturers) provided
the said containers are exported out of India with in 6 Months
or such further period as permitted by the customs |
| I |
Supply to projects funded
by UN agencies |
| 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
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| 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
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| 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 |
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