Import of all types of approved and un-approved drugs under the Advance Licensing Scheme – Re export
With regard to re-export of the material imported from an unregistered source in the event of failure to export the resultant product, the DGFT clarifies that
· In any case if the material is imported from unregistered sources and the licence holder has failed to export the goods, then the advance licence cannot be regularized even on payment of applicable customs duty.
· unregistered raw material under any circumstances shall not allowed to be diverted for domestic consumption within India.
· However, the licensee has the option either to use the imported raw material for production of other export products for export or to re-export the imported raw material and the advance licence obligation shall be deemed to have discharged to that extent.
· The Customs Authorities shall ensure that the raw material so exported should be the same raw material, which was imported earlier against the particular licence.
· In addition, the facility would be available irrespective of the foreign buyer and can be exported to any other foreign buyer.
· If the export obligation period is not valid at the time of export of other finished product/re-export of raw material, then the licensee shall be required to pay necessary composition fee for extension in export obligation period as per provisions of Policy
DGFT CIRCULAR NO. 41/2005-09, Dated: December 12, 2005