Скачать или смотреть Invalidation of Advance License | Complete Explanation | Step-by-Step Process

What is Invalidation of Advance Authorisation?
In India, an Advance License Holder can use inputs from domestic suppliers instead of importing them directly, with the help of an Invalidation Letter. This letter also allows the domestic supplier to receive Advance Intermediate Authorisation, enabling them to source duty-free inputs and fulfil their obligation by supplying them to the Advance License Holder. In essence, the Invalidation Letter provides a way for domestic suppliers to receive an exemption on duties for inputs they provide to another manufacturer with Advance Authorisation.

How does it work?
An advance license holder chooses to invalidate their advance license and procure raw materials from a domestic supplier instead of importing them.
The invalidation letter, issued by the DGFT, mentions the name of the domestic supplier.
The domestic supplier then applies for an advance intermediate authorisation.
This authorisation allows the domestic supplier to procure duty-free inputs based on the invalidation letter received from the advance authorisation holder, manufacture finished products, and supply them to the advance license holder.
In this process, the domestic supplier saves on customs duty and IGST, which they then pass on to the advance license holder. The advance license holder uses the material supplied by the domestic supplier to manufacture the export product, thereby fulfilling their export obligation.
It’s important to note that the validity of the invalidation letter is the same as the validity of the advance license.

What are the documents required for Invalidation of Advance Authorisation?
Major documents include:
1. Purchase Invoice of the Domestic Supplier
2. Industrial License of the Domestic supplier (i.e MSME/Udyam Registration/IEM License)
3. Valid IEC Copy of the Domestic Supplier
4. Advance Authorisation License of the Advance Authorisation Holder
5. BG/LUT Bond
6. Export House Certificate (if available)
7. Domestically procured item details and quantity

What is the procedure to apply for Invalidation of Advance Authorisation?
Step 1: Documentation
Compile all the necessary documents.

Step 2: Submission of Application
Submit your application to the DGFT Regional Authority.

Step 3: Addressing Deficiencies (if any)
If there are any deficiencies in your application, promptly address them by submitting any required additional information.

Step 4: Issue of Invalidation Letter
After a thorough review, the DGFT Regional Authority will issue the Invalidation Letter.

How can A V International assist you?
At A V International, we offer a comprehensive solution for all your advanced license needs, including invalidation, revalidation, EO extension, license amendment, surrender, bond cancellation, and redemption. With over 700 exporters under our guidance, we have extensive experience in helping them obtain their advanced license. We guide you through every step, from document preparation and submission to securing your advanced license and redeeming it after the export obligation is complete.