An Advance Licence holder except Advance Licence for intermediate
supply, holder of DFRC intending to source the inputs from indigenous
sources/ canalising agencies/ EOU/ EPZ/SEZ/EHTP/STP units in lieu of
direct import has the option to source them against Advance Release
Orders denominated in foreign exchange/ Indian rupees. In such a case
the licence shall be invalidated for direct import and a permission in
the form of ARO shall be issued which will entitle the supplier to the
benefits of deemed export. The transferee of a Duty Free Replenishment
Certificate shall also be eligible for ARO facility.