PARA 4.1.1
NO CHANGE
(Please refer Cus Cir
No.24/2002 date 6/5/2002 for Changes made in Advance License vide Exim
Policy 2002-07)
PARA 4.1.1
An Advance Licence is issued to
allow duty free import of inputs, which are physically incorporated in the
export product (making normal allowance for wastage). In addition, fuel, oil,
energy, catalysts etc. which are consumed in the course of their use to obtain
the export product, may also be allowed under the scheme. Duty free import of
mandatory spares upto 10% of the CIF value of the licence which are required to
be exported/ supplied with the resultant product may also be allowed under
Advance Licence. Advance Licence can be issued for:-
a) Physical
exports:- Advance Licence may be issued for physical exports to a manufacturer
exporter or merchant exporter tied to supporting manufacturer(s) for import of
inputs required for the export product.
b) Intermediate supplies:-
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) Deemed exports:- 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 8.2 (b), (c), (d) (e)
(f),(g) (i) and (j) of the Policy.
In addition, in respect of supply of
goods to specified projects mentioned in paragraph 8.2 (d) (e) (f),(g) and (j)
of the Policy, an Advance Licence for deemed export can also be availed by the
sub-contractor of the main contractor to such project provided the name of the
sub contractor(s) appears in the main contract. 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.
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