| DEFINITON |
| A |
An
Advance Licene/Release Order 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 |
| C |
An Advance Licence
holder except Advance Licence for intermediate supply, holder
of DFRC intending to source the inputs from indigenous sources/
canalising agencies/EOU/EPZ/SEZ/EHTP/STP units in lieu of direct
import has the option to source them Against Advance Release
Orders denominated in foreign exchange/ Indian rupees. In such
a case the licence shall be invalidated for direct import and
a permission in the form of ARO shall be issued which will entitle
the supplier to the benefits of deemed export. The transferee
of a Duty Free Replenishment Certificate shall also be eligible
for ARO facility.
|
| |
| HIGHLIGHT FOR ADVANCE
RELEASE ORDER AGAINST |
| 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 |
For the Purpose
of claiming deemed export benefits if any indigenous supplier
shall produce a copy of ARO and documentary evidence substantiating
the realization of proceeds from the holder of Advance Licence
for Physical Exports/Deemed Exports/Annual Requirment, through
normal Banking Channel .ARO issue against DFRC shall however
be entitled only to benefit given in 10.3b of Policy whereas
ARO for other categories shall be entitled to benefits given
in Para 10.3b and 10.3c Of the Policy
10.3 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)
10.3 c Supply of capital goods to holders of licence under
the Export Promotion
Capital Goods(EPCG) Scheme
|
| |
| FEATURES |
| A |
The Advance Release
Order shall be produced in Original to above mentioned
indigenous producer for Supply of Goods |
| B |
This release order
will be valid upto |
| C |
The material received
by the holder of this release order shall be subject to the
same condition as applicable to the licence issued under Duty
Exemption Scheme against which this Advance Release Order has
been issued |
| D |
Both Quantity and
Value shall be limiting Factor |
| |
| BACK TO BACK INLAND
LETTER OF CREDIT |
| A |
An Advance Licence
holder except Advance Licene for Intermediate Supply and holder
of DFRC, may instead of applying for an Advance Release Order,
avail of the Facility of Back to Back Inland Letter of Credit
in accordance with the procedure specified in Handbook
|
| B |
The exporter may
alternatively avail the facility of a back to back inland letter
of credit form the banks. An Advance Licence holder, except
for an intermediate supply and DFRC holder, may approach a bank
for opening an inland letter of credit (LC) in favour of an
indigenous supplier |
| C |
Before opening
the LC, the bank will ensure that the necessary BG/LUT has been
executed by the Advance Licence holder and an endorsement to
that effect has been made on the Licence. However execution
of BG/LUT shall be required against DFRC. After opening the
inland LC, the bank shall make the following endorsement on:
| 1 |
The Exchange
Control Copy of the Advance Licence for Physical Exports/Deemed
Exports/Annual Requirment/DFRC |
| 2 |
The Cusrom
Copy of the Advance Licence for Physical Exports/Deemed
Exports/Annual Requirment/DFRC |
| 3 |
On the DEEC
book(Part-I) for Advance Licence for Physical Exports/Deemed
Exports/Annual Requirment/DFRC |
| 4 |
The Value
of this Advance Licene for Physical Exports/Deemed Exports/Annual
Requirment/DFRC, stands reduced by a sum of Rs ____ being
the value of the inland LC No____ opened today by the
licence in favour of M/s____(name and address of the Indigenous
supplier) |
| 5 |
The Licence
shall be invalidated by the bank form direct import only
in respect of the full quantity and value of the item
being sourced indigenously |
| 6 |
The Original
Letter of Credit (LC) may be retained by the bank for
negotiation and only the non negotiable copy of the LC
may be given to the indigenous supplier |
| 7 |
The responsibility
of the bank shall be confirmed to making the endorsement.
The bank shall not be liable for any misrepresentations
or false stament made by the licensee while requesting
the bank to make the endorsement. The island LC opened
by the bank in favour of the indigenouse supplier shall
not be canceled for any reason what so ever |
| 8 |
The non negotiable
of inland LC together with the Photocopy of the Advance
Licence along with DEEC duly carrying endorsements made
by the bank shall be sufficient for the indigenous supplier
to claim deemed exports benefits. LC issued against DFRC
Shall , however be entitled only to benefit given in Para
10.3b of policy, whereas LC for other categories shall
be entitled to benefit given in para 10.3 b and c of the
policy |
| 9 |
For the
Purpose of claiming deemed export benefits if any indigenous
supplier shall produce a copy of ARO and documentary evidence
substantiating the realization of proceeds from the holder
of Advance Licence for Physical Exports/Deemed Exports/Annual
Requirment, through normal Banking Channel .ARO issue
against DFRC shall however be entitled only to benefit
given in 10.3b of Policy whereas
ARO for other categories shall be entitled to benefits
given in Para 10.3b and 10.3c Of the Policy
10.3 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)
10.3 c Supply of capital goods to holders of licence
under the Export Promotion
Capital Goods(EPCG) Scheme
|
|
