Advance Licence for Annual Requirement



Advance Licence for Annual Requirement :

Manufacturer exporter with export performance or Rs. I crore in the preceding year and registered with excise authorities, except for products which are not excisable for which no such registration is required, shall be entitled for such licences. Export Houses, Trading Houses, Star Trading Houses and Super Star Trading Houses holding the certificate as merchant exporter where they agree to the endorsement of the name(s) the supporting manufacturer(s) on the relevant licence shall also be entitled for the advance licence for annual requirement.


The entitlement under this scheme shall be upto200 % (or the FOB value of export in the preceding licensing year.


The applicant shall have the flexibility to import any input in respect of items falling under the product group mentioned in the licence. However, the licence holder shall have to account for the inputs as per SION / Ad hoc Norms fixed by the Advance Licensing within the time period prescribed in this regard.


The exporters eligible for such licences shall file an application to the concerned licensing authority. The Head office / Registered Office of the company can also file an application on behalf of the manufacturing unit, furnishing full address of the factory using the inputs. In case of merchant exporters, the application shall be made by the HO / RO mentioning the name and Address of the supporting manufacturer.


The licence shall be valid for 12 months for imports and 18 months for exports from the date of its issuance. Each licence will have one port of registration for imports. Exports can take place from any of the ports covered under the scheme.


Within the eligibility, an exporter may apply for one or more than one licences in a licensing year subject to the condition that against one port registration only one licence can be issued with respect to one major export product group. On completion of export obligation against one or more licences all issued in the same licensing year, the entitlement of an exporter shall be deemed to be revived by an amount equivalent to the export obligation completed against the licenses. An exporter may accordingly apply for licence(s) in the same licensing year subject to the condition that at any point of time, in a licensing year, no two licences shall be allowed to be issued for one major export group against one port of registration.


The eligible applicant can apply for licence in the second year as per his eligibility. However, in the third year, licence shall be issued only after settling of accounts as per the of SION / norms fixed by ALC in respect of licence issued in the first year.


After expiry of 18 months the licence holder shall furnish proof of having fulfilled export obligation by submitting the prescribed documents. In case of bonafidc default in fulfilment of export obligation, the licence holder can apply for regularisation.



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