Advance Licence for Annual Requirement 4.24A

(a) The exporters eligible for such licences shall file an application in ‘Aayaat Niryaat Form’ 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 on the condition sheet attached to the licence.

(b) The applicant shall have the flexibility to import any input in respect of items mentioned in the licence. Items reserved for imports by State Trading Enterprises cannot be imported against advance licence. However those items can be procured from State Trading Enterprises against ARO issued to advance licence holder. , the licence holder shall have to account for the inputs as per SION/ individual norms fixed by Advance Licensing Committee within the time period prescribed in this regard.

In respect of export products for which Standard Input Output Norms does not exist, the licence holder shall submit an application in ‘Aayaat Niryaat Form’ alongwith prescribed documents to ALC before making the shipment. The applicant shall also furnish Advance Licence for Annual Requirement number and date alongwith the file number from which the same was issued in the covering letter to the application.

In such cases where there is a change in SION/ individual norms fixed by Advance Licensing Committee 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.

However in respect of the following inputs, the exporter shall be required to give declaration with regard to technical characteristics, quality and specifications in the application for advance licence for annual requirement and in the shipping bills. The licensing authority while issuing the licence shall mention the technical characteristics, quality and specifications in respect of such inputs:

Alloy steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings, Solvent, Perfumes / Essential Oil / Aromatic Chemicals, Surfactants, Relevant Fabrics, Marble.

(At the end of (b), 2 new sub-paragraph has been added vide PN. NO. 49/2005, DT. 02/09/2005)

(c) At the time of imports, the licence holder shall furnish the details of inputs 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.

(d) 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 falling under the export product group using the duty exempted material.

(e) The licence shall be valid for 24 months for imports and exports from the date of its issuance. Further extension of export obligation period or revalidation shall be governed by paragraph 4.22 and 4.23 of this handbook. Each licence will have One port of registration for imports. Exports can take place from any port mentioned in paragraph 4.19.

The request(s) for revalidation of licence and/or extension of the export obligation period shall be made in the form given in ‘Aayaat Niryaat Form’.

(f) Within the eligibility, an exporter may apply for one or more than one licences in a licensing year, subject to the condition that against one port of registration only one licence can be issued for the same product group.

On completion of export obligation against one or more licences, all issued in the same licensing year, the entitlement of an exporter for that licensing year shall be deemed to be revived by an amount equivalent to the export obligation completed against the licence(s).

(g) After expiry of the export obligation period, including the extended export obligation period, if any, the licence holder shall furnish proof of having fulfilled export obligation by submitting the documents prescribing in paragraph 4.25. In case of bonafide default in fulfillment of export obligation, the licence holder can apply for regularization in terms of paragraph 4.28.