In the case of newcomers who have not availed any licence under the Policy and/or have not exported in the proceeding three licensing years, first Advance Licence upto Rs. 25 lakhs may be granted by the licensing authority in accordance with the Policy.
Thereafter, Advance Licence may be granted only after verifying the bonafides and antecedents of the applicant to ensure the genuineness and existence of the firm.
Wherever the initial application has been filed for a CIF value of more than Rs. 25 lakhs and the licence has been restricted to Rs. 25 lakhs, such licence, after verification, may be enhanced for a value originally applied for or as approved by the competent authority.
In respect of exporters who have not availed any licence under the EXIM policy but have exported in the preceding three licensing years, advance licence may be issued for a CIF value not exceeding average FOB value in preceding three licensing years.
Such exporters shall be issued advance licence subject to furnishing 100% Bank Guarantee to customs authority to cover exemption from Customs duties. Specific endorsement to this effect shall be made in the licence / DEEC.