An Advance License is a license that is sanctioned by the Directorate General of Foreign Trade (DGFT) to the exporter so that the licence holder can import raw material / components under duty exemption. The Advance License enables the exporters to import the materials without any customs duty. If you put in an application for an Advance License, then do check the eligibility criterion and other guidelines in advance.
One can apply for an Advance License in many different ways. The exporter can obtain his/her Advance License with the help of Standard Input and Output Norms (SION). Another way of getting an Advance License is based on self-declared norms for which norms will be decided by Norms Committee. Apart from this, an entity can get the license in a way that is entirely based on self-declaration and self-ratification. And if you want to take another route, it can be by the applicant-specific prior fixation of norms that are designed by the Norms Committee.
The Advance License Scheme was launched by the government of India to boost the value of exports. The main aim of the scheme was to enhance the final product in a way that its price goes up and at the end of the day it benefits both the exporter as well as the country.
How can an individual revalidate an Advance License?
The ideal time for revalidation of Advance License is considered to be 12 months from the date of authorization and following are the details: –
Advance authorizations issued before 15.08.2020
6 month’s revalidation is allowed.
Advance authorizations issued on or after 15.08.2020
12 month’s revalidation is allowed.
You can apply for the revalidation by online mode under ANF-4D. Pay a visit to the official website of DGFT to gather more details regarding the whole procedure. Ensure that your file is complete in all aspects.
The revalidation of the Advance License is provided to an exporter under the Duty Exemption Scheme. The application form must be filled out by the exporter along with the details and the documents.
Documents needed forrevalidation of Advance License?
Make it a point to keep all your documents related to the Advance License in one place so that you don’t have any kind of problem while filling out the application form. This way you will be able to complete the process in a more organized and efficient way. There is a list of documents that an exporter must have to complete the procedure of revalidation of an Advance License. The documents are as follows:
A covering letter that has to be self-attested by the exporter.
Copy of the Advance License.
Statement of Export & Import.
Also, attach an application ANF-4D, make sure that there is a signature of the applicant on the same.
Application fee payment proof.
What is the application fee required for the revalidation of the Advance License?
Every procedure has a fee attached to it. So the exporter is supposed to pay a fee of Rs. 500 along with the application for revalidation. The exporter must fulfill the export obligation within eighteen months from the date granted by the licensing authority. He/she would be in a good spot to commence the process of exporting as soon as the authorization is granted.