An Advance Licence Holder (except Advance Licence for intermediate supply) and holder of DFRC intending to source the inputs from indigenous sources / State Trading enterprises / EOU / EPZ / SEZ / EHTP / STP Units in lieu of direct imports has the option to source them against Advance Release Orders denominated In foreign exchange / Indian rupees. In such cases, the licence shall be invalidated for direct import and permission in the forrn of ARO shall be issued which will entitle the supplier to the benefits of deemed exports. The transferee of the Duty Free Replenishment Certificate shall also be eligible for ARO facility.
An application for grant of ARO shall be made to the Regional Licensing Authority concerned.
An ARO issued for the procurement of an individual item shall be automatically valid for procurement from one or more indigenous sources. If an ARO is issued alongwith the Advance Licence, its validity shall be co-terminus with the validity of the Advance Licence.