TaxTMI 
TaxTMI 
Dear Sir,
plz guide is it possible to use 100% indigenous materials for export under advance license and during shipping bill filing we declare in DEEC declaration we declarate as Indigenous raw materials used for export?
plz help
Use of Indian Materials in Export under Advance license
24 Jul 2020 
3 Replies 
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Use of indigenous materials under Advance Authorization: BG/LUT required; solely indigenous sourcing may not satisfy export obligation.
Solely indigenous sourcing under the Advance Authorization scheme is subject to procedural conditions: the authorisation holder must furnish a Bank Guarantee or Legal Undertaking to the Regional Authority before sourcing, with endorsement and coordination between RA and Customs as per Handbook of Procedures and applicable Customs circulars; however, solely indigenous sourcing has been advised not to count towards fulfilment of the export obligation under the Advance Authorization, and alternative routes such as duty drawback may be preferable. (AI Summary)
Solely indigenous sourcing under the Advance Authorization scheme is subject to procedural conditions: the authorisation holder must furnish a Bank Guarantee or Legal Undertaking to the Regional Authority before sourcing, with endorsement and coordination between RA and Customs as per Handbook of Procedures and applicable Customs circulars; however, solely indigenous sourcing has been advised not to count towards fulfilment of the export obligation under the Advance Authorization, and alternative routes such as duty drawback may be preferable. (AI Summary)