Compliances to be followed after taking an Advance License

COMPLIANCE TO BE Followed Right after Having AN Progress LICENSE

In this web site, we will cover a extremely essential subject which is mostly ignored & neglected by a lot of of the exporters i.e. what are the compliances to be adopted immediately after getting an Advance Authorisation/Licenses so that your Enterprise does not catch the attention of any undesired penalties from the Govt Dept.

We will divide this site into 9 rapid different sections for a lot easier comprehension.

Pre-requisite – Financial institution Assurance (BG) at Customs

So if you are new to the AA scheme, then it is to be stored in head that right after Issuance of AA from DGFT. The AA License is registered at Customs by executing a Bond and/or Financial institution Promise.

There are some exemption notifications in area for executing a BG, however if you do not fall under the exempted group, then you must be well prepared and make required preparations for the Lender Guarantee.

Compliance as for each Software Type

Compliances under AA scheme differs as per the Application type. Know far more about the 6 application types underneath AA scheme and their relevance make sure you test on https://afleo.com/master/application-forms-progress-authorisation-plan/

For Instance, If the application is carried out beneath [No norms-Self declaration basis], then soon after the License is issued from DGFT Regional Business. The exporter has to do stick to-up for Fixation of norms at DGFT HQ, New Delhi. If the norms are not preset in time or if they are turned down, then the AA holder will have to pay out full Obligation saved + Interest.

Mentioning of Advance license No. on delivery Payments.

So after the raw elements are imported and then the export will get started for fulfilment of export obligation.

Listed here although exporting you should make guaranteed to file the shipping expenditures underneath Progress License plan and point out appropriate Advance License No. & day.

Also make sure the description & HS code of export item in transport expenditures matches with that of Advance license & Norms fastened by Norms committee.

Point out Quantity of duty no cost inputs utilized

This is a incredibly crucial compliance that really should be adopted correctly.

For Case in point, you have taken an AA for export of 10,000 Nos. Men’s T-shirt & the uncooked material allowed is Materials.

And now you are undertaking a shipment of 1,000 Men’s T-shirt. So in the Delivery invoice it has to be effectively indicated as to what amount of Cloth was applied to make 1,000 Nos. of Men’s T- shirt.

This will be checked by the DGFT authorities at the time of redemption/EODC application.

If any blunders are found in declaring the quantity although filing the shipping monthly bill, then the AA holder has to either amend the shipping and delivery monthly bill or shell out Customs Obligation ​+ Interest on the big difference quantity.

This compliance is to be also adopted for ARE-3 for source to EOUs and Bill of Exports for source to SEZ Unit.

3rd Occasion Export

If you are intending to fulfil the export obligation by undertaking 3rd party exports. i.e. Merchandise will be created by you and export by a 3rd social gathering service provider exporter less than his delivery bill.

So in the shipping and delivery bill, you should point out your AA No. & Day and along with that Remember to point out your identify as a supporting company.

If any of the circumstances are not satisfied, then that unique transport invoice will not be thought of for achievement of export obligation.

Provide to Specific Economic Zone (SEZ Unit)

If you are intending to fulfil the export obligation by providing to a SEZ Unit. Then 2 factors are pretty crucial.

Initially thing is to acquire a Monthly bill of export which is just like shipping and delivery invoice in scenario of Immediate Exports.

Next point is, the payment from SEZ unit should really come from their international Forex Account (FCA Account)

If any one of the earlier mentioned is missing, these kinds of materials will not be counted as exports.

Offer to EOU Models

For offer to EOU units to be counted as considered exports, a copy of CT-3/ARE-3 duly signed by the jurisdictional excise/GST authorities certifying the merchandise of supply, its quantity, price and date of such source should be attained.

In situation of Considered exports, several of the exporters do not focus on right documentation, because of to which this sort of provides are not thought of by DGFT for redemption and appropriately the AA holder desires to pay Customs obligation + Fascination.

Net to Net foundation Progress License

If an Advance License is received on Internet to internet foundation, then the complex specification of the element like Portion No. / Product No. if any must be described on the export documents like transport monthly bill/Invoice etcetera.

Also whilst making use of for Redemption in this sort of cases an Accountability Certification has to be attained from an Impartial Chartered Engineer.

Suitable Accounting

Final and eventually, if you have taken a great deal of Advance Licenses, then correct Accounting & Audit really should take place on common intervals. Thanks to absence of this, exporters commonly make a great deal of errors and close up paying for it to redeem the license.

Who are We and How can we enable you?

We at Afleo Team, are a staff of DGFT & Customs Experts obtaining a wealthy expertise of 10+ Yrs in Exim Consultancy & International Logistics [Freight Forwarding]. With our huge know-how and knowledge in this discipline we can characterize your circumstance for all the functions pertaining to the Advance Authorisation scheme and get it cleared in a problem cost-free fashion.

So do get in touch with us for any of your demands and our workforce will be joyful to aid you.

Let us know if you have any uncertainties in the underneath section.

We request you to share this web site with your other Market buddies, Trade associations, as this data might support them as effectively.

Thank You.