---
title: "Licences & Compliance"
space: "Wiki"
url: "https://jmtradelink.com/docs/exim/licenses-compliance"
updated: "2026-07-05"
---

# Licences & Compliance

Three registers keep the statutory side tidy: the Advance Authorisation licence ledger, LUT details, and a document-expiry tracker.

## Advance Authorisation License

An **Advance Authorisation** lets you import inputs duty-free against a commitment to export finished goods. The licence document is a live ledger of both sides:

![Advance Authorisation License](/files/exim-advance-authorisation-license.png)

- **Header** — licence number (the document's ID), export item, approved quantity and amount, validity dates.
- **Item Import Ratio** — which input items the licence allows, and the ratio per unit of export item (e.g. 4.5 kg of raw cashew per kg of kernels). The approved import quantity per input = approved export qty × ratio.
- **Imports** — consumed automatically: when a **Purchase Invoice** line references the licence, submission appends an import row (CIF value, shipping bill, ports) and updates the totals.
- **Exports** — likewise, **Sales Invoice** lines referencing the licence append export rows (FOB value in licence currency) on submission.

The licence refuses to go negative: over-importing an input beyond its ratio-derived quota, or exporting beyond the licence amount, blocks the offending invoice with a clear message. Cancelling an invoice removes its rows and restores headroom.

> With the **CAS number** setting enabled in Exim Settings, licence lookups on invoice lines match by the item's CAS number instead of item code — useful for chemical exporters where one licence covers many item codes of the same substance.

## LUT Detail

A one-screen register of your **Letters of Undertaking** (export without payment of IGST): LUT number, date, and validity. Keep the current LUT here so its number is at hand for invoices and so the team can see when renewal is due.

## Document Expiry

A renewal tracker for any statutory document — RCMC, insurance policies, licences, registrations:

- Each entry records the document name, its type (a **Document Paper** master), the issuing party, and the **expiry date**.
- When you renew, use **Make Renew Doc** on the expiring entry: it creates the successor entry and marks the old one as renewed.

Sort the list by expiry date for a standing what-needs-renewal view.