4.6

In the case of newcomers, who have not exported (either physical or deemed) in each of the preceding three licensing years, the Advance Licence shall be issued subject to furnishing 100% BG to Customs authority to cover exemption from Customs duty together with 15% interest. Specific endorsement to this effect shall be made in the licence by the licensing authority. However, the Status Holders/ PSU’s and Manufacturer exporter registered with excise authority with export of Rs 1 crore and above in preceding year and who has not been penalised under the Customs Act, Excise Act, Foreign Trade (Development and Regulation) Act, 1992 and FEMA/ FERA shall not be treated as newcomers. However, manufacturer exporters not registered with excise authorities and having an export turnover less than Rs 1 crore but registered with the state sales tax authorities need to furnish a bank Guarantee to the tune of 25% of the duties saved. Manufacturer exporters shall furnish a CA certificate certifying preceding years exports and certificate of registration with Central excise authorities or state sales tax authorities as the case may be. They shall also give a declaration that they have not been penalised under Customs Act, Excise Act, Foreign Trade (Development and Regulation) Act, 1992 and FEMA/ FERA.

(Above Para 4.6 has been amended vide PN. No. 51/2002-07, Dt. 04/12/2002)

However manufacturing companies ( not proprietorships and partnership firms), who have domestic presence are not to be treated as newcomers if the following conditions are met:

a) The company is registered with Central Excise authorities and has paid central excise (unless exempted) ,

b) The company is registered with State sales tax authorities and has paid sales tax ( unless exempted)

c) The company furnishes copy of their audited balance sheet

d) The minimum investment in plant and machinery must be Rs 50 lakhs

In such cases the licencing authority would endorse the licence with the condition that the bond/ BG shall be furnished as per the terms and conditions stipulated by the Department of Revenue .

(Above part form "However manu........" has been added vide PN. No. 64/2002-03, Dt. 19/02/2003)

(Please refer Policy Circular No. 21/2002-07, Dt. 18/03/2003 - Retrospective effect for para 4.6)

[OLD - In the case of newcomers, who have not exported in each of the preceding three licensing years, the Advance Licence shall be issued subject to furnishing 100% BG to Customs authority to cover exemption from Customs duty together with 15% interest. Specific endorsement to this effect shall be made in the licence by the licensing authority. However, the Status Holders/ PSU’s and Manufacturer exporter registered with excise authority with export of Rs.1 crore and above in preceding year and who has not been penalised under the Customs Act, Excise Act, Foreign Trade (Development and Regulation) Act, 1992 and FEMA/ FERA shall not be treated as newcomers. Manufacturer exporters shall furnish a CA certificate certifying preceding years exports and certificate of registration with Central excise authorities. They shall also give a declaration that they have not been penalised under any of the Acts mentioned in this paragraph.

(Bold part of Para 4.6 has been added vide PN. No. 12(RE-02), Dt. 2/5/2002)]