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TMI BlogADVANCE LICENCEX X X X Extracts X X X X X X X X Extracts X X X X ..... ADVANCE LICENCE X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the document to be given to Raw material supplier by purchaser. 2.What remarks to be mention in the invoice by Raw material supplier. 3. whether manufacturer supplier of material can supply the material without payment of duty agst. Advance licence. Pls give any refrence of Notification /Circular for Export under advance licence. Reply By MUKUND THAKKAR: The Reply: Dear Shivkumar if y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ou want to procure raw material against advance authorization from locally you have to contact your local DGFT office for getting invalidation letter, same you have to submitted your local supplier for procuring the material, Reply By Kailash Wankhede: The Reply: Dear Shivkumar Sharma,1. First you will need to apply for Advance Licence (AL) for procurement of goods which will be incorporated in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he final product. The Advance Licence is issued for duty free imports of inputs and the same can also be procured indigenously if available without payment of duties. DGFT may require you to fix the norms (SION) for quantum of inputs requuired for per unit of the final product. They can also issue AL on self-declaration of norms if SION not available. Secondly you will be required to apply to DGFT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Advance Realease Order (ARO) or to the bank for Back to Back Inland Letter of Credit in free foreign exchange or Indian Rupees for indigeneous procurements. Before procurement of material you will need to give the supplier AL along with ARO or Inland Letter of Credit depending upon the value and quantity of material.2. You will need to mention the relevant AL, ARO, Invalidation Letter or Lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of credit number and date on the invoice and ARE 3 form.3. Supplies under Advance Licence are treated as Deemed Export and the supplier can therefore supply the material without payment of duties following the ARE3 procedure and relevant provisions of Foreign Trade Policy (Refer Chapter 4 - Duty Exemptionand Remission Scheme). Manufacturer supplier or merchant supplier (tied to manufacturer) ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n supply material duty free under the Duty Exemptionand Remission Scheme. RegardsKailash Wankhede Reply By Kailash Wankhede: The Reply: In case you are procuring materials from an EOU/STP/EHTP unit you will not require to obtain ARO or Inland Letter of credit. In that case material can be procured by giving only Advance Licence to the supplier which in turn will have to be endorsed by the jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional Assistant Commissioner of Excise.Kailash Wankhede X X X X Extracts X X X X X X X X Extracts X X X X
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