Advance Order Release (ARO)

[Salil Patel]

Dear Sir,

Please tell me all about Sales against ARO

AI Summary

Advance Licence Holders Can Use AROs for Domestic Sourcing from EOU, SEZ, STP Units Instead of Direct Imports. An individual inquired about sales against Advance Release Orders (ARO) in a discussion forum related to Central Excise. A respondent explained that holders of an Advance Licence can source inputs from domestic sources like EOU, SEZ, or STP units instead of direct imports. This can be done using AROs, which can be denominated in either foreign or Indian currency. When using AROs, the licence is invalidated for direct import, and a permission in the form of an ARO is issued, allowing the supplier to receive deemed export benefits.