Advance authorisation scheme

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2011 A tyre manufacturing company wants to export truck / bus tyres to bangladesh / nigeria. What are the benefits available under advance authorisation scheme? Can they take benefit of Focus Market Scheme & Focus Product Scheme alongwith advance authorisation scheme.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 July 2011 Advance Licence can be issued for :

Physical Exports,
Intermediate Supplies for Exports and
Deemed Exports
and can be granted to a merchant-exporter or manufacturer-exporter for the import of inputs required for the manufacture of goods.

Advance Licences for Physical export are exempted from
Basic Customs Duty Surcharge,
Additional Customs Duty,
Anti-Dumping Duty &
Safeguard Duty

PLEASE NOTED :

Advance Licences for Intermediate Manufacturer are exempted from Basic Customs Duty, Surcharge, Additional Customs Duty
and not from Anti-Dumping Duty and Safe-guard Duty

Advance Licence for deemed export is exempted only from
Basic Customs Duty, Surcharge, Additional Customs Duty
and not from Anti-Dumping Duty and Safe-guard Duty

All these licences are now subjected to actual user condition and are made non transferrable or material imported thereunder is not transferred even after completion of export obligation.

Both Merchant and manufacturer Exporters are eligible for Adv Lic Scheme
Any item except those appearing in the negative list of imports shall be allowed to import.

fro more info:-

http://www.eximguru.com/exim/dgft/exim-procedures/2010-2011/chapter_4_duty_exemption_remission_scheme.aspx

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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30 July 2011 I agree with the expert but you must procure the import and export code number for all your transaction and be careful as you are exporting to Bangladesh. They provide you the LC of Sonalee Bank or any other Bank which is very difficult to en-cash. In most of the cases the LC is not cashed by them. So take the LC on Indian Bank.

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