Advance Licence for Annual Requirement
7.54 Manufacturer exporter with export performance of Rs.1 cr in the preceding year and registered with excise authorities, except for products which are not excisable for which no such registration is required, shall be entitled for such licences. Export House, Trading House, Star Trading Houses and Super Star Trading Houses holding the certificate as merchant exporter where they agree to the endorsement of the name(s) of the supporting manufacturer(s) on the relevant licence shall also be entitled for the advance licence for annual requirement.

The entitlement under this scheme shall be upto 125% of the FOB value of export in the preceeding licensing year.
(Above para has been amended vide Public Notice No 6(RE-2000)/ 1997-2002 dt. 7-4-2000)

The exporters eligible for such Licences shall file an application in Appendix-57 to the licensing authority under whose jurisdiction the manufacturing unit of the applicant is located.

The Head office / Registered office of the company can also file an application on behalf of the manufacturing unit. In such cases, the Head office / Registered office shall furnish full address of the factory where the inputs shall be used in the resultant product for exports. In case of merchant exporters, the application shall be made by the Head office / Registered office mentioning the name and address of the supporting manufacturer which shall be endorsed in the book.

The applicant shall have the flexibility to import any input covered under the SION in respect of items falling under the product group mentioned in the licence. However, the licence holder shall have to account for the inputs as per SION within the time period prescribed in this regard.

In such cases where there is a change in SION during the validity period of the licence, the licence holder shall account for raw material in respect of the exports made prior to the date of amendment, as per pre-revised norms and for exports made on or after the date of amendment as per revised norms. At the time of imports, the licence holder shall furnish the details of inputs, including its specification and technical characteristics, to the Customs authorities for making entries in the imports column.

The licence holder shall maintain the nexus in the imported inputs and the resultant product.

The applicant shall furnish details of the export product group, CIF value of licence and FOB value of the export obligation. However, the licence holder shall have the flexibility to export any product covered under SION for the export product group using the exempt material.

The licence shall be valid for 12 months for imports and 18 months for exports from the date of its issuance. Each licence will have one port of registration for imports.Exports can take place from any port mentioned in para 7.19

Within the eligibility, an exporter can apply for one or more than one Licence in a licensing year,subject to the condition that against one port of registration only on licence can be issued. wiht respect to one major export product group.On completion of export obligation against one or more licences all issued in the same licensing year, the entitlement of an exporter shall be deemed to be revived by an amount equivalent to the export obligation completed the licence(s).An exporter may accordingly applyfor licence(s) in the same licensing year subject to the condition that at ny point of time,in a licensing year no two licenses shall be allowed tp be issued for one major group,as defined at SI.No.10 of appendix-1,against one port of registration.

The eligible applicant can apply for licence in the second year as per his eligibility. However, in the third year, licence shall be issued only after settling of accounts as per the SIONs in respect of licence(s) issued in the first year.

After expiry of 18 months, the licence holder shall furnish proof of having fulfilled export obligation by submitting the documents prescribed in paragraph 7.25 In case of bonafide default in fulfillment of export obligation, the license holder can apply for regularisation in terms of paragraph 7.28

(Above last four paragraphs has been added vide P.N.No. 23(RE-00), Dt.24/7/2000)