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TMI BlogSupply of replenishment goods by a Merchant Exporter to the supporting manufacturer- Clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... ed by some of the Commissioner of Customs. 2. The issue is whether goods imported as replenishment by a Merchant Exporter (Advance Licence Holder) for supply to his supporting manufacturer would amount to 'transfer' of goods within the meaning of the words in the prohibition of conditions (vi) of Notification No. 204/92. The Ministry of Law had advised that this may be decided in terms of the intentions of the Administrative Ministry. 3. Quantity Based Advance Licence (QABAL) envisage that if Modvat has been availed on materials used in the export of goods, the Advance Licence Holder shall not transfer/sell his licence or the material imported thereunder. The spirit of the Scheme and the intention of the wording is that the impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xporter enters into a contract, orally or in writing to obtain from the supporting manufacturer, the export goods by paying him only jobbing charges including the cost of other materials (is other than these inputs sought for import under the Advance Licence) i.e. the cost of inputs specified in the Advance Licence is not included in the contract or the sale price paid to / agreed to between them then he would be legally bound to deliver the imported goods as replenishment for the inputs used in the manufacture of the export product. 5. In the circumstances, the scope of the term 'transfer' would cover only cases where the restriction against sale of licence, or the sale of goods imported against the said licence i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods which entered into export production. Accordingly, when he makes over the imported goods to the supported manufacturer, there is no violation of either the intention of the Government to give relief nor in any way offend the spirit of the concession which was intended for subjecting the goods to actual user condition. 8. Prior to 1.4.94, the Exim Policy provided for the supporting manufacturer in the Scheme of advance licencing. Licences issued alongwith the DEEC Book should have contained the name of the supporting manufacturer. Hence, there should not be any difficulty in identifying the supporting manufacturer. Be sides, it is left to the Commissioners to satisfy themselves that the goods have already emanated from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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