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Pre-Import and Post-Export Conditioned Duty Credit Licenses

Pre-Import and Post-Export Conditioned Duty Credit Licenses

There are two types of Duty Credit DGFT licenses that exist . Let’s talk about Pre-Import Conditioned Duty Credit Licenses first – These are a kind of duty credit licenses in which ultimate exporter imports and saves custom duty first and then exports the export product listed in the License. This means custom duty is saved before exporting and thus obligating exporter to export the necessary product in future.

Post Export Conditioned Duty Credit Licenses -

These duty credit licenses ultimate exporter exports first and then imports inputs listed in the License. Imports done shall be proportional to the Exports made under License.

Summary

It totally depends on individual which method to choose. If exporter can anticipate their exports then they should go for Pre-Conditioned Licenses else Post-Conditioned Licenses.

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