Advance Order Release (ARO)

[Guest]

Dear Sir,

Please tell me all about Sales against ARO

[Mahir S]

An Advance Licence holder intending to source the inputs from domestic/indigenous sources i.e from EOU, SEZ, STP etc units in lieu of direct import has the option to source them Against Advance Release Orders (ARO) denominated in foreign OR Indian currency.

In such a case the licence shall be invalidated for direct import and a permission in the form of ARO shall be issued which will entitle the supplier to the benefits of deemed export.

AI Summary

Advance Release Orders enable deemed export benefits for suppliers when inputs are sourced domestically instead of by direct import. Advance Release Orders let Advance Licence holders source inputs from domestic suppliers instead of importing; choosing this route invalidates the licence for direct import and prompts issuance of an ARO (in foreign or Indian currency). The ARO entitles the domestic supplier-such as units under EOU, SEZ, STP-to claim benefits available under the deemed export regime for supplies made against the ARO.