| Deemed Exports |
8.1 |
"Deemed Exports" refers to those
transactions in which the goods supplied do not leave the country and the payment for such
supplies is received either in Indian rupees or in free foreign exchange. |
| Categories of Supply |
8.2 |
The following categories of supply of goods by
the main/ sub-contractors shall be regarded as "Deemed Exports" under this
Policy, provided the goods are manufactured in India: |
|
|
(a) |
Supply of goods against Advance Licence/Advance Licence
for annual requirement/DFRC under the Duty Exemption /Remission Scheme; |
|
|
(b) |
Supply of goods to Export Oriented Units (EOUs) or units
located in Special Economic Zone (SEZs) or Software Technology Parks (STPs) or Electronic
Hardware Technology Parks (EHTPs); |
|
|
(c) |
Supply of capital goods to holders of licences under the
Export Promotion Capital Goods (EPCG) scheme; |
|
|
(d) |
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 in accordance with the procedures of those
agencies/ funds, where the legal agreements provide for tender evaluation without
including the customs duty; |
|
|
(e) |
Supply of capital goods, including in unassembled/
disassembled condition as well as plants, machinery, accessories, tools, dies and such
goods which are used for installation purposes till the stage of commercial production and
spares to the extent of 10% of the FOR value to fertiliser plants. |
|
|
(f) |
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 under this chapter to domestic
supplies; |
|
|
(g) |
Supply of goods to the power projects and refineries not
covered in (f) above. |
|
|
(h) |
Supply of marine freight containers by 100% EOU (Domestic
freight containers–manufacturers) provided the said containers are exported out of
India within 6 months or such further period as permitted by the Customs; and |
|
|
(i) |
Supply to projects funded by UN agencies. |
|
|
(j) |
Supply of goods to nuclear power projects through
competitive bidding as opposed to International Competitive Bidding. |
|
|
The benefits of deemed exports shall be
available under paragraph (d), (e), (f) and (g) only if the supply is made under the
procedure of International Competitive Bidding (ICB). |
| Benefits for Deemed Exports |
8.3 |
Deemed exports shall be eligible for any/all
of the following benefits in respect of manufacture and supply of goods qualifying as
deemed exports subject to the terms and conditions as given in Handbook (Vol.1):- |
|
|
(a) |
Advance Licence for intermediate supply/ deemed
export/DFRC. |
|
|
(b) |
Deemed Exports Drawback. |
|
|
(c) |
Refund of Terminal Excise duty. |
