Foreign Trade Policy 2005
8. Advance Licensing Scheme
- No safeguard and antidumping duty shall be levied on inputs under Advance Licence for deemed export supplies made to ICB projects. With this different categories of Advance licences i.e. advance licence for physical export, advance licence for intermediate supplies and advance licence for deemed exports have been merged into a single category for procedural facilitation and easier monitoring.
- The scope of Advance Licence for Annual requirement has been extended to all categories of exporters having past export performance. Earlier, the option was limited to Status Holders only. The earlier limit of obtaining Advance Licence for Annual requirement has also been enhanced to 300% of FOB/FOR value of exports made in the previous year from 200%.
- Clubbing of advance licences for export regularization purpose has been allowed even for licences pertaining to 1992-97 period.
- Units registered under BIFR shall be allowed export obligation extension as per the rehabilitation package or a period upto fivebyears reckoned from the date of issuance of the advance licence , whichever is higher.
- Transfer of Duty Free material imported or procured under Advance Licence from one unit of the company to another unit of the same company to be allowed with prior intimation to the jurisdictional central excise authority. Earlier prior permission of the jurisdictional central excise authority was required.
- In cases the Bank Guarantee/LUT has been redeemed under the Advance licence , the Licensee may be allowed to get duty free inputs processed from any manufacturer under actual user condition subject to central excise procedures relating to job work.
- Removal of requirement of ARO for taking supplies from EOU/EHTP/STP/BTP units and allowing direct debit of the advance licence by the Bond Officer of these units. A detailed procedure in this regard shall be prescribed by the CBEC.
9. Duty Free Replenishment Certificate
- List of Sensitive Items has been pruned down to nine items. Brass scrap, Additives, Paper/Paper Board and Dye Stuffs shall be removed from the Sensitive List of items prescribed for import of items under DFRC.
- Provision for re-credit on account of rejections of items imported under DFRC shall be similar to the facility available to DEPB and Advance Licence . While allowing re-credit, 95% of the value of the DFRC shall be credited.
DEPB benefits shall be available for supply of goods from DTA to SEZs for the period 1.04.2003 to 11.05.2004.