Redemption of License
Whenever a pre-import conditioned license is issued, it is supposed to be redeemed or surrendered (if unutilized).
Pre-Import condition means when the goods are imported first with the benefit of customs duty under licenses such as Advance Authorization or EPCG authorization and then export is done. These kind of licenses are non-transferable and are actual user-conditioned licenses.
When a pre-import conditioned license is availed from DGFT, the exporter is obligated to Export the amount proportional to Imports with the conditions as per condition sheet made under the said License.
When the Specific Exports and Average Exports (if applicable) are done under the license, the exporter needs to redeem the license in other, words get redemption from the License.