Advance License - Extention

[SHOEB VAPIWALA]

Dear Sir

Advance License issued against export obligation for a period of 6 years. You are requested to guide us in the light on present Exim Policy whether

1. Can it be extend for another 2 years?

2. If once already extended can it extended for another term?

3. Is there any penalty on extending the terms on 1st or 2nd time?

Thanks

VAPIWALA S G

AI Summary

Inquiry on Advance License Extension: Only One 6-Month Extension Allowed with 0.5% Fee Under Foreign Trade Policy Guidelines. An individual inquired about extending an Advance License issued against export obligations for six years, asking if it could be extended for another two years, and whether penalties apply for extensions. Respondents clarified that the license can be extended only once for six months, subject to a composition fee of 0.5% of the shortfall in export obligations. It was noted that the license may have been confused with an EPCG license, which has different extension policies. Further guidance was provided on the applicable regulations, indicating that two extensions are possible, each with different composition fees, as per the Foreign Trade Policy guidelines.