Beruflich Dokumente
Kultur Dokumente
Value Addition
The value addition for the purposes of this chapter shall be:-
4.1.2
A-B
V.A
V.A
Value Addition
ADVANCE LICENCE
Advance Licence
4.1.3
a)
b)
c)
4.1.4
4.1.5
4.1.6
4.1.7
4.1.8
Export Obligation
4.1.9
Advance
Orders
Release 4.1.11
Prohibited Items
Admissibility
Drawback
4.1.13
of 4.1.14
REVALIDATION :
1 An Advance Licene is issued under Duty Exemption Scheme may be revalidated on
merits by the licensing authority concerned, which has issued the licence for a period of
Six Months at a time but not beyond a period of 12 Months reckoned from the date of
expiry of the validity period.
2 An Application for revalidation may be made to the licensing authority concened in the
form given in Appendix 12. However , to such cases where revalidation of the licence is
to be considered by DGFT, the originals application alongwith TR shall be submitted to
the regional licensing Authority concerned the copy of the same shall be submitted to
DGFT
3 In terms of Para 7.23 HBP the regional Licensing authority may consider a request of
the Original licence holder and grant one revalidation for a period of six months from
the date of expiry of the original licence.
4 Request for further revalidation may be considered by the regional licensing
authorities. However such revalidation shall not exceed a period of Six Months from the
date of expiry of earlier revalidation
5 The request for revalidation of licence shall be made in the form given in Appx-12
6 In case the exporter is not able to complete exports even in this enhanced period,
provision has been made for extension of export obligation period by Regional
Licensing Authority to the extent of 6 months on payment of penalty @ 1% of
unfulfilled export obligation value. This will also provide an incentive to the exporter to
complete export obligation within the extended period of validity of advance licence.
7 The Export obligation period under Advance Licence has been enhanced from 12
months to 18 months and similarly the validity of the Advance Licence has also been
enhanced form 12 months to 18 months, hence the exporter gets more time of export
and import
exports in 4.12
Anticipation
of Licence
4.12.
1
4.12.
2
The conversion of duty free shipping bills to drawback shipping bills may
also be permitted by the customs authorities in case the application for an
Advance Licence is rejected or modified by the licensing authority.
Note:
Advance Licence, unless otherwise stated, means Advance Licence for Physical
Exports/ Intermediate Supply/ Deemed Exports.
Advance
4.13
Licence for
Intermediate
Supplies
The application for grant of Advance License for Intermediate supply may
be made on the basis of a tie-up agreement with the exporter holding an
Advance license for physical exports/deemed exports. Such requests shall
be considered by the licensing authority concerned. The Advance License
for Intermediate supply shall be issued after making the licence invalid for
direct import of items 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 the intermediate supplier as well as
the licensing authority of the intermediate supplier. The licensee in such
case has an option either to supply the intermediate product to holder of
Advance Licence for physical exports/deemed exports or to export
directly. The facility of advance licence for intermediate supply shall be
4.14
4.14.
1
The application shall specify (i) the name, description and quantity of the
items and (ii) the individual value of items to be procured. An ARO may
be issued along with the Advance Licence for Physical
Exports/Intermediate Supplies/ Deemed Exports/DFRC or subsequently,
and its validity shall be co-terminus with the validity of the Advance
Licence for Physical Exports/Intermediate Supplies/Deemed Exports. An
ARO issued for the procurement of an individual item shall be
automatically valid for procurement from one or more indigenous
sources.
Back
to 4.15
Back Inland
Letter
of
Credit (LC)
The exporter may alternatively avail the facility of a back to back inland
letter of credit from the banks. An Advance Licence holder, and a DFRC
holder, may approach a bank for opening an inland letter of credit (LC) in
favour of an indigenous supplier.
4.15.
1
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 not be required against DFRC. After opening the inland LC, the
bank shall make the following endorsement on the Exchange Control and
Customs copy of the Advance Licence for Physical Exports/ Deemed
Exports/DFRC;
The value of this Advance Licence for Physical Exports/ Deemed
Exports/ DFRC stands reduced by a sum of Rs. ________ , being the
value of the inland LC No.________ opened today by the licensee in
favour of M/s ____________________ (name and address of the
indigenous supplier).
4.15.
2
The licence shall be invalidated by the bank for direct import only in
respect of the full quantity and value of the item being sourced
indigenously.
4.15.
3
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.
4.15.
4
4.15.
5
The non negotiable copy of inland LC together with the photocopy of the
Advance Licence duly carrying endorsements made by the bank shall be
sufficient for the indigenous supplier to claim deemed export benefits. LC
issued against DFRC shall, however, be entitled only to benefit given in
paragraph 8.3(b) of Policy, whereas LC for other categories shall be
entitled to benefits given in paragraph 8.3 (b) and (c) of the Policy.
4.15.
6
Facility of 4.16
Supporting
Manufacture
rs
The imported material may be used in any of the units of the licence
holder or supporting manufacturer provided the same is endorsed on the
licence by the regional office. However, the licence holder shall be solely
responsible for the imported items and fulfillment of export obligation.
Facility Of
Co-Licensee
4.17
Acceptance
of BG/LUT
4.18
Note :-
(a)
(b)
(c)
Port Of Registration
4.19
The licence and the Advance Licence shall be issued for the
purpose of import and export through one of the sea ports or
airports or ICDs or LCS specified below. The licence holder
shall register the licence, the port specified in the licence and
thereafter all imports against the said licence shall be made
only through that port, unless he obtains permission from the
customs authority concerned to import through any other
specified port. However, exports may be made through any of
the specified ports.
Sea
Ports
Airports
ICDs:
LCS
4.19.1
4.19.2
In such cases, where the licence has not been registered at the
port specified in the licence and no import has taken place,
the request for change in the Port of Registration may be
considered by the licensing authority concerned provided the
licence has not been redeemed.
4.19.3
Facility of
4.20
4.20.1
4.20.2
4.20.3
4.20.4
4.21
Clubbing
Enhancement/
Reduction In
the Value of
Licence
Export Obligation
Period and its
Extension
4.21.1
4.21.2
4.22
4.22.1
b)
b)
b)
4.22.2
Revalidation
Licence
Of 4.23
Monitoring
Obligation
of 4.24
4.24.1
(iv)
(iv)