Advance Licence - Nexus between export product and imported input to continue to be established - Customs - 011/95

Circular No. 11/95-Cus. dated 15/2/95 F.No. 605/256/94-DBK Government of India Ministry of Finance Department of Revenue, New Delhi Subject : Clarification regarding Value Based Advance Licence - Nexus between the inputs and export products. Your attention is drawn to the Ministry's Circular No. 34/94 dated 12/12/94 emphasising the need for nexus between import items and inputs used in the export goods and the reference made therein in DGFT's ALC Circular No. 17/94 dated 8.11.94 DGFT have however, subsequently withdrawn their above Circular vide their ALC Circular No. 21 / 94 dt. 16.12.94. 2. In view of the withdrawal of the nexus Circular by DGFT, some doubts have been expressed by the Collectors of Customs, and Central Excise about the status of the Ministry's Circular No. 34/94 which was based on the ALC Circular No. 17/94 issued by the DGFT. It may be recalled that in the past also this Ministry has emphasised the need for establishing nexus between the goods exported and inputs mentioned the application for Advance Licence/ DEEC Book Part I. 3. Your attention is also invited to Ministry's Circular No. 10/94 dated 9.5.94 issued from F.No. 605/95/94-DBK wherein it was clarified that instructions of other agencies should not be followed if the same are not in conformity with the provisions of Notifications and with instructions issued from time to time by the Board. Accordingly you may continue to look into the nexus between the inputs used/ required to be used in the export product and the duty free inputs sought to be imported against the same as mentioned in telex of even no. dt. 23/1/95 except for export goods specifically exempted from such requirement in the Notification No. 203/92-Customs like Electronic goods/ writing instruments. Sd/- (Sunil Kumar) Director (Drawback)