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ARO/ Back-to-Back LC for AIL/ DFRC
Notification No. 16
dated 8th October 2002
In exercise of powers conferred by Section 5
of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992)
read with paragraph 1.1 of the Export and Import Policy, 2002-07, the Central
Government hereby amends/corrects the Export and Import Policy, 2002-07 as
under:
1.
Paragraph 4.1.8 pertains to Advance Release Orders. It has been decided
to permit Advance Release Orders against an Advance Licence for Intermediate
Supplies also. Hence the first sentence of paragraph 4.1.8 is amended by
deleting the expression "(except Advance Licence for intermediate
supply)". The amended version of this para would be as under:
An Advance Licence holder and
holder of DFRC intending to source the inputs from indigenous sources / state
trading enterprises/ EOU/ EPZ/ SEZ/ EHTP/ STP units in lieu of direct import has
the option to source them against Advance Release Orders denominated in foreign
exchange / Indian rupees. The transferee of a DFRC shall also be eligible for
ARO facility.
2.
Paragraph 4.1.9 pertains to Back-to-Back Inland Letter of Credit. It has
been decided to permit Back-to-Back Inland Letter of Credit against an Advance
Licence for Intermediate Supplies also. Hence the first sentence of paragraph
4.1.9 is amended by deleting the phrase " (except Advance Licence for
intermediate supply)". The amended version of this para is as under:
An
Advance Licence holder and holder of DFRC may, instead of applying for an
Advance Release Order, avail of the facility of Back-to-Back Inland Letter of
Credit in accordance with the procedure specified in Handbook (Vol.1).
This issues in public interest.
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