ADVANCE LICENCE

[SHIVKUMAR SHARMA]

Dear Experts

one of my freind want to procure raw material from domestic market agst.Advance licence without payment of central excise duty. The Finished goods produced will be exported.Pls.guide us in the following points.

1. what will the document to be given to Raw material supplier by purchaser.

2.What remarks to be mention in the invoice by Raw material supplier.

3. whether manufacturer supplier of material can supply the material without payment of duty

agst. Advance licence.

Pls give any refrence of Notification /Circular for Export under advance licence.

AI Summary

Procurement of Raw Materials Duty-Free for Export via Advance Licence: Process, Documentation, and Deemed Exports Explained. A discussion on procuring raw materials under an Advance Licence without paying central excise duty for export purposes. The process involves obtaining an Advance Licence and potentially an Advance Release Order (ARO) or an Inland Letter of Credit. Raw material suppliers must be provided with these documents, and relevant details should be included in invoices. Supplies under Advance Licence are considered Deemed Exports, allowing duty-free supply under the Duty Exemption and Remission Scheme. If sourcing from an EOU/STP/EHTP unit, only the Advance Licence is needed, endorsed by the jurisdictional Assistant Commissioner of Excise.