7.3(a)
- Document type
- Policy
- Dated
- Category
- Exim Policy (upto 31/03/2001)
Advance Licence
Advance Licence is issued for duty free import of inputs, as defined in
paragraph 7.2,
subject to actual user condition. Such licences (other
than Advance Licence for deemed exports) are exempted from payment of
Basic Customs Duty, Surcharge, Additional Customs Duty, Anti Dumping
Duty and Safeguard Duty, if any. However, Advance Licence for deemed
export shall be exempted from Basic Customs Duty, surcharge and
Additional Customs Duty only. Such licences are issued to:
(i) Manufacturer exporter or Main contractor in case of deemed
exports.
(ii) Merchant exporter where the merchant exporter agrees to the
endorsement of the name(s) of the supporting manufacturer(s) on
the relevant DEEC Book and in the case of deemed exports, sub
contractor(s)whose names appear in the main contract.
Such licences and/or materials imported thereunder shall not be
transferable even after completion of export obligation. However, in
exceptional cases, the material may be allowed to be transferred on
merits by ALC.
Such licences shall be issued with a positive value addition. However,
for exports for which payments are not received in freely convertible
currency, the same shall be subject to value addition as specified in
Appendix-
39 of Handbook (Vol.1),1997-2002
Advance Licence shall be issued in accordance with the Policy and
procedure in force on the date of issue of licence and shall be subject
to the fulfillment of a time bound export obligation as may be
specified.