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TMI BlogUse of Indian Materials in Export under Advance licenseX X X X Extracts X X X X X X X X Extracts X X X X ..... Use of Indian Materials in Export under Advance license X X X X Extracts X X X X X X X X Extracts X X X X ..... rials used for export? plz help Reply By KASTURI SETHI: The Reply: Your question is improper and odd. If you intend to you 100% indigenous materials, the very purpose of Advance Authorisation is defeated. What benefit do you want to get by using 100% indigenous materials for export under Advance Authorisation ? Why to follow tedious path ehen you can export in a simple and routine manner. Anyho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, there is a provision to procure indigenous material as per para 2.35(b) of FTP 2015-20. 2.35 Execution of Legal Undertaking (LUT) / Bank Guarantee (BG) (a) -------------------- (b) In case of indigenous sourcing, Authorisation holder shall furnish LUT/BG/Bond to RA concerned before sourcing material from indigenous supplier/nominated agency as prescribed in Chapter 2 of Handbook of Procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Relevant extract of Chapter 2 of Handbook of Procedures. Bank Guarantee /LUT: 2.29 Execution of BG/Legal undertaking for Advance Authorisation/ EPCG Authorisation (a) ----------------------- (b) In case of indigenous sourcing, Authorisation holder shall furnish BG/ LUT to RA as per Customs Circular No.58/2004 dated 31.10.04, as amended from time to time. In case, the firm has already execu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted BG/LUT for the full value of the licence/ certificate/ authorisation/ permission (covering the items indigenously procured) to the Customs and furnishes proof of the same to Regional Authority (RA), no BG/LUT shall be required to be executed with the RA. The RA concerned shall endorse on the authorisation that the Customs Authority shall release/redeem BG/LUT only after receipt of NOC or EODC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the RA concerned. RA shall endorse a copy of the same along with a forwarding letter to the Customs Authority at the Port of registration for their information and record. You will have to follow Customs circular no.58/2004 dated 31.10.04 amended from time to time.Last amended on 13.09.2019. Since there is a provision for procurement of indigenous materials under Advance Authorisation, it c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be implied that indigenous materials can be used. Reply By Mahir S: The Reply: Use of 100 percent indigenous goods for export under advance authorization scheme is not allowed and shall not be counted as fulfillment of export obligation under the Advance license scheme. Reply By YAGAY andSUN: The Reply: Goods/Raw material imported against AA can only be used for manufacturing of goods for m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeting the export obligation as mentioned in AA. If using 100% indigenous material then better to opt AIR Duty Drawback as it is not allowed in case of AA. X X X X Extracts X X X X X X X X Extracts X X X X
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