7.5

(a) The licensing authority may also issue Advance licences, where SION are not fixed, based on self declaration and an undertaking by the applicant for a final adjustment as per Adhoc/SION fixed by ALC.

(b) i) The CIF value of one or more such licences shall be Rs.50 lakhs or 100% of the FOB and/or F.O.R value of preceding year exports/ supply, whichever is more. However Export House/ Trading House/Star Trading House/Super Star Trading House can claim one or more such licences upto 200% of the FOB value of preceding year exports .

(ii) Once the norms are fixed by ALC, the value limits mentioned in sub paragraph 7.5 (b)(i), above would not be applicable to advance licences issued under this paragraph. Such licences, subsequent to fixation of norms by ALC, may be enhanced to a value originally applied for or as decided by the competent authority. The value of the licences, deducted from the entitlement (i.e. Rs. 50 lakhs or 100%/ 200% of the FOB value of preceding year exports, whichever is more), shall be re credited upon fixation of norms by ALC.

The new comers shall also be entitled for licenses in this category for a CIF value not exceeding Rs.50 lakhs subject to furnishing of 100% Bank Guarantee to Customs authority to cover the exemption from Customs duties. A specific endorsement to this effect shall be made on the licence/DEEC Book.

(iii) An applicant including a new comer shall be entitled for licence under this paragraph in excess of entitlement mentioned in sub paragraph (b)(i) subject to furnishing of 100% Bank Guarantee to Customs authority to cover the exemption from Customs duties. A specific endorsement to this effect shall be made on the licence/ DEEC Book.

(iv) The original application with prescribed documents shall be submitted to the concerned Regional Licensing Authority. The licensing authority shall forward a copy of the application within 7 days from the date of issue of such licences to ALC for fixation of norms within the prescribed time.

(v) The applicant shall give an undertaking that he shall abide by the norms fixed by ALC and accordingly pay duty, together with 24% interest, on the unutilised inputs as per norms fixed by ALC.

(vi) In such cases, where the norms are not finalised by ALC within six months, the norms as applied for shall be treated as final and no adjustment will be made. However, where the application for fixation of adhoc/SION is rejected on account of non furnishing of required documents/ information, the licence holder shall be liable for penalty as stated in the above paragraph. In such cases where the export obligation is completed pending fixation of norms by ALC, the entitlement for the licence as given in second paragraph may be recredited upon production of documentary evidence showing fulfillment of export obligation and realisation of foreign exchange in respect of the previous licenses. However, bond waiver/redemption shall not be allowed pending fixation of norms in such cases.

(Pl. see Alc. Cir. 3/2001, Dt.5/9/2001.)

(Pl. refer Trade Notice No.11/2001, DATE: 11.09.2001)