The domestic manufacturer can get advance intermediate license for raw materials required by him for manufacture and supply of intermediate products to the exporter. Such a domestic manufacturer of intermediate products can get advance customs release order on the basis of the licence of the final exporter. Besides, such a domestic manufacturer can send intermediate goods to the final exporter without payment of excise duty. Under this scheme, a domestic manufacturer can import machinery and plant without payment of customs duty or at a concessional rate of customs duty. 8 Nil incase CIF value is Rs50mn or more for agriculture, aquaculture, animal husbandry, floriculture, horticulture, poultry and sericulture.
Time is in years.
The exporter can also procure such machinery from India with payment of duty or at concessional rate of duty. Similarly, he can obtain goods from the domestic market without excise duty. Production has to be under the supervision of the customs or excise authority. An exporter is entitled to claim drawback or refund of excise and customs duties paid by his suppliers. Drawback on material used for manufacturer of export products can be claimed by the final exporter.