The other Export Promotional Schemes issued by DGFT are:
1)100% EOU

2) Deemed Export.


What is Deemed Exports?

 Deemed Exports refers to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange.

 

Categories of Deemed Exports

 Following categories of supply of goods by main / sub-contractors shall be regarded as “Deemed Exports” under FTP, provided goods are manufactured in India: 

·         Supply of goods against Advance Authorisation / Advance Authorisation for annual requirement / DFIA;

·         Supply of goods to EOUs or STPs or EHTPs or BTPs;

·         Supply of capital goods to holders of Authorisations under EPCG Scheme;

·         Supply of goods to projects financed by multilateral or bilateral agencies / Funds as notified by Department of Economic Affairs (DEA), MoF under International Competitive Bidding (ICB) in accordance with procedures of those agencies / Funds, where legal agreements provide for tender evaluation without including customs duty; Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies / Funds as notified by DEA, MoF under ICB, in accordance with procedures of those agencies / Funds, which bids may have been invited and evaluated on the basis of Delivered Duty Paid (DDP) prices for goods manufactured abroad;

·         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 stage of commercial production, and spares to extent of 10% of FOR value to fertilizer plants;

·         Supply of goods to any project or purpose in respect of which the MoF, by a notification, permits import of such goods at zero customs duty;

·         Supply of goods to power projects and refineries not covered in (f) above;

·         Supply of marine freight containers by 100%EOU (Domestic freight containers-manufacturers) provided said containers are exported out of India within 6 months or such further period as permitted by customs;

·         Supply to projects funded by UN agencies; and (j) Supply of goods to nuclear power projects through competitive bidding as opposed to ICB. Benefits of deemed exports shall be available under paragraphs (d), (e), (f) and (g) only if the supply is made under procedure of ICB.

 

1.    Benefits for Deemed Exports:

Deemed exports shall be eligible for any / all of following benefits in respect of manufacture and supply of goods qualifying as deemed exports subject to terms and conditions as in HBP v1:-

Type of Benefit

Purpose of benefit

FTP 2009-14

Advance Authorisation / 
Advance Authorisation for 
annual requirement / DFIA

Procurement of inputs without 
payment of Customs duties provided 
these inputs are used in the manufacture 
of Goods for Export.

Para 8.3(a)

Deemed Export Drawback 
from DGFT

When the goods are supplied by DTA 
manufacturers or to Export oriented units 
then the suppliers can get drawback of duties from RA of DGFT.

Para 8.3(b)

Exemption from 
Terminal Excise Duty

When supplies are made against ICB 
(International competitive Bidding). In other cases, refund of terminal excise duty will be given.

Para 8.3(c)

2.    Benefits to the Supplier:

he benefits to suppliers (Deemed Exporters) have been outlined in Para 8.4.1 to Para 8.4.7 of the FTP. Without going into the details of each of those, we shall concentrate on the benefits available to the suppliers against supplies made to Power Projects.

Type of Supplies

Criteria

Benefits

General:
Supplies made under Para
8.2(d), (f) and (g) of FTP

 

Supplier shall be entitled to benefits listed in paragraphs
8 .3 (a), (b) and (c), whichever is applicable.

Specific:
Para 8.2 (d):
Supplies to projects funded by such

 Agencies alone, as may be notified by DEA,

 MoF, shall be eligible for deemed export benefits.

A list of such Agencies / Funds
is given in Appendix 13 of 
HBP v1.

Benefits under Para 8.2 (a), (b) or (c) whichever is applicable

Para 8.2 (f):
Applicable in respect of items, import of which is allowed by DoR at zero customs duty.

Subject to fulfilment of 
conditions specified under 
Notification No. 21/2002-
Customs dated 1.3.2002, as 
amended from time to time.

Benefits under Para 8.2 (a), (b) or (c) whichever is applicable

Para 8.2 (g):
Supply of Capital goods and spares up to 10% of FOR value of capital goods to power projects shall be entitled for deemed export benefits.

ICB procedures have been
followed at Independent Power 
Producer (IPP) / Engineering 
and Procurement Contract
(EPC) stage.

Benefits under Para 8.2 (a) or (b) whichever is applicable.
Benefit under Para 8.2 (c) is not available.

 

What you can expect from us

We assist Suppliers and / or Recepients of goods in assessing the feasibility of the schemefrom the inception stage along with complete planning, costing at the stage of tendering etc.Then we assist in all the formalities, documentation, application preparations, representation and coordination with the relevant authorities along with procurement of any DEEC / EPCG Authorisations if required by the Supplier(s) other than benefits of deemed exports likeDrawback, Excise refund etc. Such benefits are available to either the Supplier or the Recepient.The job includes complete work of carrying out all the formalities, documentation, application preparations, representation and coordination with the relevant authorities to get the final benefits.