22 August 2019
I have a scenario of; Company "A", is a DTA company has got a Export Order from Thailand. To Manufacture the Export order, "A" company wants raw material of Stainless Steel in sheet form. Since the size of his raw material requirement is less, he got the quotation from suppliers with high price, Advance payment and need to wait for 2 months for reception of material. Hence, he has approached "B" company who is importer of Stainless Steel Coils and supplying locally. The condition offered by "B" with respect of price, credit period and delivery. The agreement is, "B" company will import coils and slit / sheer it to the size required by "A" company. With this initial operation, "A" company will complete the rest of manufacturing activity to produce the required product.
In addition to the export order, "A" is already supplying some products to local customers. Also "B" company is importing and supplying to local customers.
Now the question is, Can "B" company apply for Advance Licence for the material required by "A"?