The Hindu Business Line : Inter-unit transfer of imported raw materials allowed

COMPANIES with multiple units may have cause for cheer. The Director General of Foreign Trade (DGFT) has formally issued instructions to allow transfer of raw materials imported/procured against advance licence from one unit to another unit of the same company.

Such transfers would however be allowed only after obtaining the permission of excise authorities and with a clear understanding that no modvat/cenvat benefits would be claimed on such transferred inputs.

An advance licence is issued under duty exemption scheme, which enables duty-free import of inputs required for export production. Such licences are issued to allow duty-free import of inputs, which are physically incorporated in the export product.

In addition, fuel, oil, energy, catalysts etc., which are consumed in the course of their use to obtain the export product are also allowed under the scheme.

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