9911796707
TMI BlogUse of Indian Materials in Export under Advance licenseX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, plz guide is it possible to use 100% indigenous materials for export under advance license and during shipping bill filing we declare in DEEC declaration we declarate as Indigenous raw materials used for export? plz help - Reply By KASTURI SETHI - The Reply = Your question is improper and odd. If you intend to you 100% indigenous materials, the very purpose of Advance Authorisation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is defeated. What benefit do you want to get by using 100% indigenous materials for export under Advance Authorisation ? Why to follow tedious path ehen you can export in a simple and routine manner. Anyhow, there is a provision to procure indigenous material as per para 2.35(b) of FTP 2015-20 . 2.35 Execution of Legal Undertaking (LUT) / Bank Guarantee (BG) (a) -------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) In case of indigenous sourcing, Authorisation holder shall furnish LUT/BG/Bond to RA concerned before sourcing material from indigenous supplier/nominated agency as prescribed in Chapter 2 of Handbook of Procedures. Relevant extract of Chapter 2 of Handbook of Procedures. Bank Guarantee /LUT : 2.29 Execution of BG/Legal undertaking for Advance Authorisation/ EPCG Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isation (a) ----------------------- (b) In case of indigenous sourcing, Authorisation holder shall furnish BG/ LUT to RA as per Customs Circular No.58/2004 dated 31.10.04 , as amended from time to time. In case, the firm has already executed BG/LUT for the full value of the licence/ certificate/ authorisation/ permission (covering the items indigenously procured) to the Customs and furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ishes proof of the same to Regional Authority (RA), no BG/LUT shall be required to be executed with the RA. The RA concerned shall endorse on the authorisation that the Customs Authority shall release/redeem BG/LUT only after receipt of NOC or EODC from the RA concerned. RA shall endorse a copy of the same along with a forwarding letter to the Customs Authority at the Port of registration for thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r information and record. You will have to follow Customs circular no.58/2004 dated 31.10.04 amended from time to time.Last amended on 13.09.2019. Since there is a provision for procurement of indigenous materials under Advance Authorisation, it can be implied that indigenous materials can be used. - Reply By Mahir S - The Reply = Use of 100 percent indigenous goods for export under adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance authorization scheme is not allowed and shall not be counted as fulfillment of export obligation under the Advance license scheme. - Reply By YAGAY andSUN - The Reply = Goods/Raw material imported against AA can only be used for manufacturing of goods for meeting the export obligation as mentioned in AA. If using 100% indigenous material then better to opt AIR Duty Drawback as it is not al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed in case of AA. - Use of Indian Materials in Export under Advance license - Query Started By: - VISHAL PATEL Dated:- 24-7-2020 Customs - Import - Export - Customs - SEZ - Got 3 Replies - Customs - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
