Sub-Schemes of Advance License

Advance License can be classified into 3 categories namely –

1. Advance Release Order | ARO

2. Invalidation Certificate

3. Certificate of Supplies | COS

These three types of License are availed in case the Exporter wants to furnish raw material from a Local Manufacturer/Supplier. Let’s get on them one by one –

Advance Release Order | ARO

When a Local manufacturer asks for ARO against supply of goods for Export item production, it basically means the Local manufacturer is availing Duty Drawback against the supply of goods.

Invalidation Certificate

When a Local Manufacturer asks for Invalidation Certificate against supply of Goods for Export item production, the Local Manufacturer can get advance license issued from DGFT with the help of Invalidation Certificate to Import further raw material.

Certificate of Supplies | COS

In this case, the exporter is procuring goods from SEZ/ EOU. Special Economic Zones and Export Oriented Units require Certificate of Supplies when supplying duty free to Domestic Tariff Area.