|What is the meaning of Deemed Exports?|
|What are the different categories of supplies regarded as ‘DEEMED EXPORTS’?|
|What are the benefits available under ‘Deemed Exports’?|
|What is the procedure for claiming the benefits of ‘DEEMED EXPORTS’?|
What is the meaning of Deemed
‘Deemed Exports’ as defined in the Export and
Import Polilcy, 1997-2002 means those transactions in which the goods supplied
do not leave the country and the supplier in India receives the payment for the
goods. It means the goods supplied
need not go out of India to treat them as ‘Deemed Export’.
What are the different
categories of supplies regarded as ‘DEEMED EXPORTS’?
The following categories of supply of goods
manufactured in India shall be regarded as “deemed Exports” under the Export and
Import Policy 1997- 2002.
a). Supply of goods against licenses
issued under the Duty exemption Scheme:
b) Supply of goods to
Units located in Export Processing Zones (EPZs) or Software Technology Parks
(STPs) or Electronic Hardware Technology Parks (EHTPs) or
Export Oriented Units (EOUs)
Supply of Capital goods to holders of licenses issued under the Export
Promotion Capital Goods (EPCG) Scheme;
Supply of goods to Projects financed by Multilateral or Bilateral
agencies/funds as notified by the Department of Economic Affairs, Ministry of
Finance under international competitive bidding or under limited tender system
in accordance with the procedure of those agencies/funds, where the legal
agreements provide for tender evaluation without including the Customs duty
Supply of capital goods and spares to fertilizer plants if the supply is
made under the procedure of international competitive bidding.
Supply of goods to any Project or purpose in respect of which the
Ministry of Finance, by; a notification permits the import of such goods at zero
customs duty coupled with the extension of benefits to domestic supplies;
Supply of goods to such projects in the Power, Oil and Gas sectors in
respect of which the Ministry of Finance, by Notification, extends the benefits
to domestic supplies.
h) Supply of Marine Freight Containers by 100% EOU (Domestic freight containers-manufacturers) to shipping companies including Shipping Corporation of India provided the said containers are exported out of India within 6 months or such further period as permitted by customs.
What are the benefits
available under ‘Deemed Exports’?
Deemed Exports shall be eligible for the following benefits in respect of
manufacture and supply of goods qualifying as Deemed Exports:
Special Imp rest Licence/Advance Intermediate License;.
Exports Drawback Scheme i.e, on the Deemed Exports, Drawback at the rate fixed
by the Ministry of Finance for the DGFT or his regional Officers pay the goods
of terminal excise duty ie., Central Excise duty, if paid any, on the goods
supplied under Deemed Exports is refunded by the DGFT or his regional
d) ‘Special Import License’ at the rate of 6 per cent of the FOB value (excluding all taxes and levies)
e) If the
supplier has made the supplies against Advance Release Order(ARO) or Back to
Back Letter of Credit, he shall be entitled for the benefits of Deemed Exports
Drawback Scheme, Refund or terminal excise duty and Special Imprest License
respect of supply of capital goods to EPCG license holder, the supplier shall be
entitled to the benefits stated above except, however, that the benefit of
Special Imprest License or Deemed Export Drawback Scheme shall be available only
in case of supplies made to Zero
duty EPCG license holder.
What is the procedure for
claiming the benefits of ‘DEEMED EXPORTS’?
The Suppliers of the goods under ‘Deemed Exports’ should make application
to the regional licensing authority concerned claiming the benefits of ‘Deemed
Exports’. The applications should be made in the forms given in Appendix 17 of
‘Hand Book of Procedure’s of export and Import Policy, 1997-2002. along-with
documents prescribed therein.