4.24A

(a) The exporters eligible for such licences shall file an application in Appendix-10-I to the licensing authority under whose jurisdiction the manufacturing unit of the applicant is located.

The Head office/Registered office of the company can also file an application on behalf of the manufacturing unit. In such cases, the Head office/Registered office shall furnish full address of the factory where the inputs shall be used in the resultant product for exports. In case of merchant exporters, the application shall be made by the Head office/ Registered office mentioning the name and address of the supporting manufacturer shall be endorsed on the condition sheet attached to the licence.

(b) The applicant shall have the flexibility to import any input in respect of items falling under the product group mentioned in the licence. However, the licence holder shall have to account for the inputs as per SION/ individual norms fixed by Advance Licensing Committee within the time period prescribed in this regard. In respect of export products for which Standard Input Output Norms does not exist, the licence holder shall submit an application in Appendix-10 alongwith prescribed documents to ALC before making the shipment. The applicant shall also furnish Advance Licence for Annual Requirement number and date alongwith the file number from which the same was issued in the covering letter to the application.

In such cases where there is a change in SION/ individual norms fixed by Advance Licensing Committee during the validity period of the licence, the licence holder shall account for raw material in respect of the exports made prior to the date of amendment, as per pre-revised norms and for exports made on or after the date of amendment as per revised norms.

(c) At the time of imports, the licence holder shall furnish the details of inputs, including its specification and technical characteristics, to the Customs authorities for making entries in the imports column. The licence holder shall maintain the nexus in the imported inputs and the resultant product.

(d) The applicant shall furnish details of the export product group, CIF value of licence and FOB value of the export obligation. However, the licence holder shall have the flexibility to export any product falling under the export product group using the exempt material.

(e) The licence shall be valid for 12 months for imports and 18 months for exports from the date of its issuance. Each licence will have One port of registration for imports. Exports can take place from any port mentioned in paragraph 4.19. The regional licensing authority may consider a request of the license holder and grant one revalidation for a period of six months from the date of expiry of the original licence. No further revalidation may be considered by the regional licensing authorities. The regional licensing authority may also grant extension in export obligation period in terms of paragraph 4.22 and 4.22.1 of the Handbook of Procedure subject to the payment of composition fee as prescribed therein. Such export obligation period extension should not exceed 12 months from the date of expiry of original export obligation period of the licence. The request(s) for revalidation of licence and/or extension of the export obligation period shall be made in the form given in appendix-10G.

(Above (e) has been amended vide PN. No. 41/2003, DT. 28/01/2004)

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(e) The licence shall be valid for 12 months for imports and 18 months for exports from the date of its issuance. Each licence will have One port of registration for imports. Exports can take place from any port mentioned in paragraph 4.19. ]

(f) Within the eligibility, an exporter may apply for one or more than one licences in a licensing year, subject to the condition that against one port of registration only one licence can be issued with respect to one major export product group. On completion of export obligation against one or more licences, all issued in the same licensing year, the entitlement of an exporter shall be deemed to be revived by an amount equivalent to the export obligation completed against the licence(s). An exporter may accordingly apply for licence(s) in the same licensing year subject to the condition that at any point of time, in a licensing year, no two licences shall be allowed to be issued for one major export group, as defined at Sl.No. 7 of Appendix -1, against one port of registration.

The eligible applicant can apply for licence in the second year as per his eligibility. However, in the third year, licence shall be issued only after settling of accounts as per the SIONs/individual norms fixed by ALC in respect of licence(s) issued in the first year.

(g) After expiry of 18 months the licence holder shall furnish proof of having fulfilled export obligation by submitting the documents prescribing in paragraph 4.25. In case of bonafide default in fulfillment of export obligation, the licence holder can apply for regularization in terms of paragraph 4.28.

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(h) No revalidation or extension in export obligation period shall be permitted in case of Advance Licence for Annual Requirement. ]

(Above (h) has been deleted vide PN NO. 57/2003, Dt. 31/03/2004)

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