ADVANCE LICENSE ( DEEC )

[SNEHAL SHAH]

Sir ,

We have import the Input Raw Material under Advance license with out payment of Custom and Excise duty .

Now we have import this Input material against Export order of party . But due to some circumstances Customer cancel the order .

Now we have to dispose off this input material .

Plz guide us Customs and Excise formalities .

Thx

SNEHAL SHAH

[MUKUND THAKKAR]

please contact from which port you had released your import goods against advance authorization. and pay custom duty along with interest and penalty. and inform all details of duty payments to your DGFT office for regularized your matter.

Before completed formalities of custom it is not advisable to dispose off input material.

[Mahir S]

Yes sir..

In your case, It is advisable to pay the duty, interest and penalty amount at the earliest.

[SNEHAL SHAH]

Sir,

After payment of all Duty + interest + Penalty , can we sale it at local market this Input material or use in our production and sale FG in local market .

Plz suggest sir ,

Thanks and Regards,

SNEHAL SHAH

AI Summary

Advance license duty regularization: pay customs duty with interest and penalty before domestic sale or disposal.
Where inputs imported under an Advance License are stranded by cancellation of the export order, the operative requirement is payment of applicable customs duty with interest and penalty and informing the DGFT for regularisation; disposal, sale, or domestic use should not occur before completing these customs and regularisation formalities.