Advance lics import

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2012 Dear all,
Can anyone tell me if we have taken advances license but some case we haven't imported the material but i have completed our export obligation for the same lics.so can we apply for redemption for the license.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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03 January 2012 An Advance Licence is issued under Duty Exemption Scheme to allow import of inputs which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed in the course of their use to obtain the export product, may also be allowed under the scheme. Advance Licence can be issued for:-

1. Physical exports
2. Intermediate supplies
3. Deemed exports.

also noted that:
An advance licence is granted for the import of inputs without payment of basic customs duty. Such licences shall be issued in accordance with the policy and procedure in force on the date of issue of the licence and shall be subject to the fulfillment of a time-bound export obligation, and value addition as maybe specified. Advance licences maybe either value based or quantity based.

in view of above, if you have not purchased input goods and export it , why have you taken this advance licence?

in this regards, if you purchase goods from local and what was benefit for you?

in other way you can surrender if you have not import through this licence.

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