The procedure for obtaining an Advance License and registering it with customs in India involves several steps. Here’s an overview of the process:

  1. Eligibility Check: Before applying for an Advance License, businesses should determine if they meet the eligibility criteria for the specific type of license they require. The eligibility criteria may vary depending on the export-import policies in place at the time.
  2. Online Application: The application for an Advance License is typically submitted online through the DGFT’s electronic platform, such as the DGFT website or the DGFT’s Exporter-Importer Code (IEC) portal. The applicant must complete the application form and provide all required details accurately.
  3. Document Submission: Along with the application form, businesses must submit supporting documents, which may include:
    • Copy of Importer-Exporter Code (IEC) certificate.
    • Bank certificate or statement showing the financial status of the applicant.
    • Details of the export product and its specifications.
    • Details of the imported inputs/raw materials required for production.
    • Any other documents specified by DGFT.
  4. Export Obligation: Applicants must specify the export obligation they are willing to undertake. This involves committing to export a certain value of goods within a specified time frame. The type of export obligation (physical exports, deemed exports, or a combination) should be clearly mentioned in the application.
  5. Processing Fee: Applicants are required to pay a processing fee as specified by DGFT. The fee can be paid online through the prescribed method.
  6. Application Submission: Once the application is complete, it can be submitted electronically. After submission, the application is processed by the concerned regional DGFT office.
  7. Scrutiny and Verification: DGFT officials will scrutinize the application and the supporting documents. They may conduct site visits and seek clarifications if necessary. The aim is to ensure that the application aligns with the export-import policies and regulations.
  8. Issue of Advance License: If the application is approved, DGFT will issue the Advance License. The license specifies the items that can be imported duty-free and the conditions for export.
  9. Registration with Customs: With the Advance License in hand, businesses can register it with customs authorities at the port of import. This involves submitting a copy of the license along with the shipping documents, including the bill of entry.
  10. Claiming Duty Exemption: At the time of importing the specified inputs or raw materials covered by the Advance License, customs will allow duty-free clearance, provided all conditions are met.
  11. Compliance and Record-Keeping: Businesses must comply with the export obligation and maintain records of imports, production, and exports as required by DGFT.

It’s important to note that the specific requirements and procedures may change over time based on updates to export-import policies. Therefore, businesses should consult with our team who specialize in international trade to ensure they are following the latest procedures and meeting all compliance requirements.