An Advance Licence is issued under Duty Exemption Scheme to allow 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. Advance Licence can be issued for:-

• Physical exports
  
• Intermediate supplies
  
• Deemed exports.
  
  

Advance Licences can also be issued on the basis of annual requirement for exports/supplies as mentioned at (a) to (c) above in accordance with the conditions given in Handbook (Vol.1).

Duty Remission Scheme consists of (a) Duty Free Replenishment Certificate and (b) Duty Entitlement Passbook Scheme. The scheme allows drawback of import charges on inputs used in the export product (making normal allowance for the wastage).