Exports made under deferred payment or suppliers' line of credit contract are now entitled to benefits under the advance licence scheme (ALS). The benefits would, however, be available only for contracts that are backed by cover from the Export Credit Guarantee Corporation (ECGC). The Commerce Ministry's move to confer ALS benefits to exports made under deferred payment contracts is likely to spur project exports from the country, informed sources said.
Exports made against Government of India/ Exim Bank's line of credit are already entitled to benefits under the ALS. An advance licence allows duty-free import of inputs that are physically incorporated in the export product (making normal allowance for wastage).
Advance licences are usually issued on the basis of the inputs and export items given under the Standard Input and Output Norms.
