Question

Advance License Scheme is a duty exemption scheme. (State with reason whether the given statement is true or false)

Answer 1

Yes, the state, ‘Advance License Scheme is a duty exemption scheme’, this statement is true.

The Foreign Trade Policy 2015-2020 in its 4th chapter clearly states that ‘Duty exemption schemes enable duty-free import of inputs required for export production’. As a duty exemption scheme, an Advance Licence is issued. Further, a Duty Remission Scheme permits post export renewal or diminution of duty on inputs used in the export product. It encompasses Duty-Free Replenishment Certificate or  DFRC  and Duty Entitlement Passbook Scheme or  DEPB.