7.20

The accountability of imports and exports shall be restricted in relation to the individual categories of advance licences issued under this scheme. The export obligation may also be fulfilled by exporting to the party other than the party, which has initially placed the order on the basis of which licence has been issued.

The regional licensing authority, under whose jurisdiction the licence is issued or ALC in other cases, may also consider a request for clubbing all imports and exports of more than one Advance Licence/ Advance Licence for annual requirement (clubbing of all Advance Licence for physical exports or clubbing of all Advance Licence for Intermediate supplies or clubbing of all Advance Licence for deemed exports or clubbing of Advance Licence for annual requirement) provided the imported inputs are properly accounted for as per norms. The value addition of the licences so clubbed shall be the average of the value addition imposed on individual licences. Upon clubbing, the licences shall, for all purposes, be deemed to be one licence.

The facility of clubbing shall be available only for redemption/regularisation of the cases and no further import or export shall be allowed. For this facility, licences are required to have been issued under similar Customs notification.

In case an Advance Licence(s), where export obligation has already expired, is to be clubbed with an Advance Licence(s) where export obligation period is valid, the applicant shall pay the composition fee of 1% or 5%, as the case may be, prescribed for extension of export obligation in respect of Advance Licence(s) where export obligation period has expired.

In such cases, the exports effected 30 months/18 months under Advance Licence/Annual Advance Licence after the issuance of the expired licence shall not be considered for clubbing.