7.12

An application may be made to the Regional Licensing Authority concerned for grant of Advance Release Order (ARO) to procure the inputs from indigenous sources/ State Trading Enterprise/EOUs/ EPZ/ SEZ/EHTP/STP units.

The application shall specify (i) the name, description and quantity of the items and (ii) the individual value of items to be procured. An ARO shall be issued without indicating the name of the indigenous supplier after making the Advance Licence for physical exports/deemed exports/annual requirement invalid for direct import of items mentioned thereon. An ARO may be issued along with the Advance Licence for Physical Exports/Deemed Exports/ Annual Requirement/DFRC or subsequently, and its validity shall be co-terminus with the validity of the Advance Licence for Physical Exports/ Deemed Exports/ Annual Requirement. An ARO issued for the procurement of an individual item shall be automatically valid for procurement from one or more indigenous sources.

For the purpose of claiming deemed export benefits, if any, the indigenous supplier shall produce a copy of ARO and documentary evidence substantiating the realisation of proceeds from the holder of Advance Licence for Physical Exports/ Deemed Exports/ Annual Requirement, through normal banking channels. ARO issued against DFRC shall, however, be entitled only to benefit given in paragraph 10.3(b) of Policy, whereas ARO for other categories shall be entitled to benefits given in paragraph 10.3 (b) and (c) of the Policy