[DELETED -
4.6

On approval, a Letter of Permission (LOP)/Letter of Intent (LOI) shall be issued by the Development Commissioner to EOU/EHTP/STP unit. The LOP shall have an initial validity of 3 years for commencement of production. Its validity may be extended by another 3 years, beyond initial validity, by the competent authority. However, proposals approved prior to 1.4.2002 shall be considered on a case to case basis by BOA beyond six years. Standard Format for LOP extension is given at Appendix 14-IS. ]

(Above para 4.6 Stand deleted vide PN. NO. 53(RE-03), DT. 27/02/2004)

(Para 4.6 has been amended vide PN. No. 43/2003, DT. 28/01/2004)

[OLD -
a) 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.

b) However, status holders/ public sector undertakings shall not be treated as newcomers. 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 FERA/ FEMA shall not be treated as newcomer.

c) Manufacturer exporters not registered with excise authorities 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.

d) Manufacturing companies (as distinguished from proprietorships and partnership firms who may also be manufacturing), who have domestic presence are not to be treated as newcomers if the following conditions are met:

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

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

iii) The company furnishes copy of their audited balance sheet.

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

In respect of manufacturer exporters registered with excise authority with export of Rs.1 crore or above in preceding year falling in category (b) above, LUT condition shall be imposed on the CIF value of advance licence(s) provided the CIF value does not exceed 200% of the FOB/FOR value of exports/supplies made in the preceding licensing year. Licence beyond 200% entitlement shall be subject to 100% BG on the value exceeding 200% entitlement. However, the entitlement may be re-credited on production of documentary evidence showing fulfilment of export obligation and realisation of foreign exchange.

In respect of exporters who have exported in each of the preceding three licensing years and exporters falling in category (c) above, the 25% BG condition shall be imposed on the CIF value of advance licence(s) provided the CIF value does not exceed 200% of the FOB/FOR value of exports/supplies made in the preceding licensing year. Licence beyond 200% entitlement shall be subject to 100% BG on the value exceeding 200% entitlement. However, the entitlement may be re-credited on production of documentary evidence showing fulfilment of export obligation and realisation of foreign exchange.

In respect of applicant falling under d) above or falling under c) and d) both, the 25% BG condition shall be imposed on the CIF value advance licence(s) provided the CIF value does not exceed 200% of the domestic turnover or 200% of the FOB/FOR value of supplies, whichever is higher. Licence beyond 200% entitlement shall be subject to 100% BG on the value exceeding 200% entitlement. However, the entitlement may be re-credited on production of documentary evidence showing fulfillment of export obligation and realisation of foreign exchange.

Notwithstanding anything stated above, merchant exporters (other than status holders and PSUs) shall be issued advance licence requiring them to provide 100% BG.

(Sub-paragraph after (iv) has been amended vide PN. NO. 08/2003, DT. 14/05/2003)

(PN No. 8/2003, Dt. 14/05/2003 has been corrected vide PN. No. 09/2003, Dt. 22/05/2003)

[OLD -
In respect of exporters who have exported in each of the preceding three licensing years and exporters falling in category c) above, the 25% BG condition shall be imposed on the CIF value of advance licence(s) provided the CIF value does not exceed 200% of the FOB/FOR value of exports/supplies made in the preceding licensing year. Licence beyond 200% entitlement shall be subject to 100% BG on the value exceeding 200% entitlement.

In respect of applicant falling under d) above or falling under c) and d) both, the 25% BG condition shall be imposed on the CIF value advance licence(s) provided the CIF value does not exceed 200% of the domestic turnover or 200% of the FOB/FOR value of supplies whichever is higher. Licence beyond 200% entitlement shall be subject to 100% BG on the value exceeding 200% entitlement

Notwithstanding anything stated above, merchant exporters (other than status holders and PSUs) shall be issued advance licence requiring them to provide 100% BG.] ]

Presented by eximkey.com