Advance license - Invalidation letter

[Chandra Sekharan]

In my Advance license - import material list contain paper bags ( Packing material) . I procure paper bags from local supplier who imports pulp. can i ask my supplier to use my advance license for importing the packing material , so that i can provide him invalidation letter .is it permissible to do so , if so what would be the benefits for me. Kindly explain

[KASTURI SETHI]

Invalidation letter is for procurement of material from domestic supplier instead of imports. In your case the supplier is supplying packing material which is finished product for you. So you cannot use customer's Invalidation letter for imports of their raw material.

[Ganeshan Kalyani]

In my view, you can sell the license.

[CSSANJAY MALHOTRA]

You can provide invalidation letter to your supplier who in turn will apply for Advance Authorisation for import of pulp. Afterwards his Export obligation will be fulfilled when he makes supply of paper bag to you.

[Raghunandhaanan rvi]

Yes. I endorse the views of Mr. Sanjay. This is the way invalidation letter operates

AI Summary

Invalidation letter enables supplier to import inputs under Advance Authorisation and discharge export obligation through supply of finished goods.
An invalidation letter may be provided to a domestic supplier, who can apply for an Advance Authorisation to import inputs (pulp); the supplier's import and supply of finished packing material (paper bags) to the licence-holder can be used to fulfil the supplier's export obligation under that Advance Authorisation.