4.18

At the time of issue of the licence, the acceptance of the undertaking given by the applicant to the licensing authority concerned in the form given in Appendix-10B will be endorsed on the reverse of the Advance Licence .

Note :- (a) No BG/LUT will be required where the specified export obligation has been fulfilled before making any import. In case of partial fulfillment of export obligation before effecting any imports, the BG/ LUT may be reduced proportionately. The licence holder shall also produce EP copy of the shipping bills and Bank Certificate of Export and Realisation, and a statement of exports giving details of shipping bill wise exports indicating the shipping bill number, date, FOB value as per shipping bill and description of export product substantiating the completion or the partial fulfillment of the export obligation to the licensing authority concerned. However, realisation of export proceeds shall not be insisted if the shipments are made against confirmed irrevocable letter of credit and the same is certified by the bank in column 14/15 of Appendix 22.

(In above Note (a) bold sentence has been added vide PN. No. 39/2002-07, Dt. 08/10/2002)

(b) In respect of an advance licence on which "No BG/LUT" facility has been provided, the licensing authority shall forward a copy of the “No Bond Certificate” indicating the shipping bill number, date, FOB value as per shipping bill and description of export product, in respect of shipment which were taken into account for calculating fulfilment of export obligation to the customs authorities with whom the licence is/required to be registered. Before allowing the imports against Advance Licence, the Customs shall verify that the details of the exports as given in the “No Bond Certificate” are as per their records.