Actual User Condition for Advance Authorisation
(i) Advance Authorisation and / or material imported under Advance Authorisation shall be subject to ‘Actual User’ condition. The same shall not be transferable even after completion of export obligation. However, Authorisation holder will have option to dispose of product manufactured out of duty free input once export obligation is completed.
(ii) In case where CENVAT/input tax credit facility on input has been availed for the exported goods, even after completion of exportobligation, the goods imported against such Advance Authorisation shall be utilized only in the manufacture of dutiable goods whether
within the same factory or outside (by a supporting manufacturer). For this, the auhorisation holder shall produce a certificate from either the jurisdictional Customs Authority or Chartered Accountant, at the option of the exporter, at the time of filing application for Export Obligation Discharge Certificate to Regional Authority concerned.
(iii) Waste / Scrap arising out of manufacturing process, as allowed, can be disposed off on payment of applicable duty even before fulfillment of export obligation.