Export obligation calculation under advance licence scheme
This query is : Resolved
15 July 2013
Respected Sir,
What is the link for detail rules regarding Export obligation calculation under Advance licence scheme..
What is the link for detail rules regarding Export obligation calculation under Advance licence scheme..
15 July 2013
link is:
https://www.caclubindia.com/experts/advance-license-closing-929490.asp
http://www.eximguru.com/exim-procedures/2009-2014/chapter_4_duty_exemption_remission_scheme.aspx
https://www.caclubindia.com/experts/advance-license-closing-929490.asp
http://www.eximguru.com/exim-procedures/2009-2014/chapter_4_duty_exemption_remission_scheme.aspx
15 July 2013
Respected Sir,
I needed detail rules & regulation regarding the Advance licencing scheme..the working of the export obligation,... the terms & conditions..
Value addition cretiria..in case of textile industries..etc..
I needed detail rules & regulation regarding the Advance licencing scheme..the working of the export obligation,... the terms & conditions..
Value addition cretiria..in case of textile industries..etc..
15 July 2013
http://dgft.gov.in/exim/2000/policy/ftpplcontentE1213.pdf
06 April 2015
can anyone supply us the rules regarding procurement of input agst advance license.
Further I am under impression that by getting the advance license, exporter are eligible for import input without basic custom duty & can be exported the FG without paying excise duty.
Am i correct? Kindly help
Further I am under impression that by getting the advance license, exporter are eligible for import input without basic custom duty & can be exported the FG without paying excise duty.
Am i correct? Kindly help
24 July 2024
Yes, you are correct about the benefits and rules regarding Advance Licenses (AL) under the Export Promotion Capital Goods (EPCG) scheme in India. Here’s a detailed explanation:
### Advance License (AL) and its Benefits:
1. **Procurement of Inputs**: Under the Advance License scheme, exporters can procure raw materials, components, consumables, intermediates, parts, and packing materials duty-free from domestic sources. This is specifically meant for use in the manufacture of goods to be exported.
2. **Exemption from Customs Duty**: The main benefit of an Advance License is that it allows duty-free import of inputs required for manufacturing goods meant for export. This exemption typically covers Basic Customs Duty (BCD), Additional Customs Duty (ACD), and Education Cess.
3. **Exemption from Excise Duty**: When the finished goods manufactured using inputs procured under an Advance License are exported, exporters are exempted from paying Excise Duty (now GST) on those goods.
### Rules Regarding Procurement of Inputs Against Advance License:
- **Eligibility**: Exporters need to apply for an Advance License from the Directorate General of Foreign Trade (DGFT) before procuring inputs. The license specifies the quantity and value of inputs that can be imported duty-free based on the export obligation.
- **Export Obligation**: Exporters must fulfill a certain export obligation, which means they need to export a specified quantity/value of goods within a fixed period. The duty exemption on inputs is contingent upon meeting this export obligation.
- **Usage of Inputs**: Inputs imported under an Advance License must be used in the manufacture of goods meant for export. They cannot be diverted for any other purpose.
- **Validity and Compliance**: The Advance License is valid for a specific period and requires compliance with various regulatory conditions, including submission of documents and periodic reporting of exports.
### Documentation and Application:
- **Application**: Exporters need to submit an application to the DGFT providing details such as the type of license required, export product details, quantity/value of inputs required, and the expected export obligation.
- **Customs Documentation**: While importing inputs duty-free, exporters need to comply with customs documentation requirements and provide the necessary declarations and documents.
### Conclusion:
Advance Licenses are crucial for exporters looking to reduce their production costs by importing duty-free inputs and exporting finished goods without paying excise duty (now GST). It promotes exports by enhancing the competitiveness of Indian goods in international markets. Ensure to consult with DGFT guidelines and customs regulations for specific details and procedures tailored to your business needs.
### Advance License (AL) and its Benefits:
1. **Procurement of Inputs**: Under the Advance License scheme, exporters can procure raw materials, components, consumables, intermediates, parts, and packing materials duty-free from domestic sources. This is specifically meant for use in the manufacture of goods to be exported.
2. **Exemption from Customs Duty**: The main benefit of an Advance License is that it allows duty-free import of inputs required for manufacturing goods meant for export. This exemption typically covers Basic Customs Duty (BCD), Additional Customs Duty (ACD), and Education Cess.
3. **Exemption from Excise Duty**: When the finished goods manufactured using inputs procured under an Advance License are exported, exporters are exempted from paying Excise Duty (now GST) on those goods.
### Rules Regarding Procurement of Inputs Against Advance License:
- **Eligibility**: Exporters need to apply for an Advance License from the Directorate General of Foreign Trade (DGFT) before procuring inputs. The license specifies the quantity and value of inputs that can be imported duty-free based on the export obligation.
- **Export Obligation**: Exporters must fulfill a certain export obligation, which means they need to export a specified quantity/value of goods within a fixed period. The duty exemption on inputs is contingent upon meeting this export obligation.
- **Usage of Inputs**: Inputs imported under an Advance License must be used in the manufacture of goods meant for export. They cannot be diverted for any other purpose.
- **Validity and Compliance**: The Advance License is valid for a specific period and requires compliance with various regulatory conditions, including submission of documents and periodic reporting of exports.
### Documentation and Application:
- **Application**: Exporters need to submit an application to the DGFT providing details such as the type of license required, export product details, quantity/value of inputs required, and the expected export obligation.
- **Customs Documentation**: While importing inputs duty-free, exporters need to comply with customs documentation requirements and provide the necessary declarations and documents.
### Conclusion:
Advance Licenses are crucial for exporters looking to reduce their production costs by importing duty-free inputs and exporting finished goods without paying excise duty (now GST). It promotes exports by enhancing the competitiveness of Indian goods in international markets. Ensure to consult with DGFT guidelines and customs regulations for specific details and procedures tailored to your business needs.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- TDS deduction (debit notes)
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
