Input Sourcing Gets A Boost
The Director General of Foreign Trade (DGFT) has taken a practical decision by allowing sourcing of indigenous inputs under duty exemption against advance intermediate licences.
The holders of such licences can now get advance release orders from the regional licensing authorities or open back-to-back letters of credit through banks, as provided for in the Exim Policy.
An advance intermediate licence is issued to enable duty-free import of inputs required by a supplier for manufacture of inputs required by an advance license holder, who intends to use the inputs so procured in the manufacture of his export product.
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Till now, the advance intermediate license holder was not allowed to source the inputs required by him from domestic producers.
The DGFT