7.11 The application for grant of Advance License for Intermediate supply may be made on the basis of a tie-up agreement with the exporter holding an Advance license for physical exports/deemed exports/annual requirement. Such requests shall be considered by the licensing authority concerned. The Advance License for Intermediate supply shall be issued after making the licence invalid for direct import of items to be supplied by the intermediate manufacturer. In such cases, a copy of the invalidation letter will be given to the licence holder and copy thereof will be sent to the intermediate supplier as well as the licensing authority of the intermediate supplier.

The licensee in such case has an option either to supply the intermediate product to holder of Advance Licence for physical exports / deemed exports/annual requirement or to export directly
(First sentence of this para has been amended vide P.N.No. 23/(RE-00) , Dt.24/7/2000.)