7.6

(i) In the case of newcomers, who have not availed any licence under the Policy and/or have not exported in the preceding three licensing years, first Advance Licence upto Rs.25 lakhs may be granted by the licensing authority in accordance with the Policy.

Thereafter, Advance Licence may be granted only after verifying the bonafides and antecedents of the applicant to ensure the genuineness and existence of the firm. For this purpose, the applicant shall be asked to produce a copy of any one of the documents, namely, Income Tax Return/ Sales Tax Return/ Central Excise Certificate/Registration Certificate from the concerned authority/Administrative Ministry/ Photocopy of the passport of the Director/ Partner/ Proprietor/ Trustee or any other documentary evidence to the satisfaction of the licensing authority.

Wherever the initial application has been filed for a CIF value of more than Rs. 25 lakhs and the licence has been restricted to Rs. 25 lakhs, such licence, after verification, may be enhanced for a value originally applied for or as approved by the competent authority.

ii) In respect of exporters who have not availed any licence under the EXIM policy but have exported in the preceding three licensing years, advance license may be issued for a CIF value not exceeding average FOB value in preceding three licensing years.

iii) Exporters covered under sub paragraph 7.6(i) and (ii) shall be issued advance license subject to furnishing 100% Bank Guarantee to customs authority to cover exemption from Customs duties. Specific endorsement to this effect shall be made in the license/DEEC.