Deemed export

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Vaibhav

Vaibhav (Querist)
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28 April 2011 Sir,
What is deemed export??
Which export will be deemed export??

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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28 April 2011 AS PER FOREIGN TRADE POLICY 2004-2009, 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.

FOR MORE INFO:-

http://dgftcom.nic.in/exim/2000/policy/chap-08.htm

Saroja

Saroja (Expert)
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28 April 2011 1. Ans: It 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

2.Ans:
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)

c)Supply of Capital goods to holders of licenses issued 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 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

e)Supply of capital goods and spares to fertilizer plants if the supply is made under the procedure of international competitive bidding.

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 to domestic supplies;

g)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.

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Guest

Guest (Expert)

28 April 2011
'Deemed Exports' as defined in the Foreign Trade Policy 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'.

Following categories of supply of goods by main / subcontractors shall be regarded as "Deemed Exports" under FTP, provided goods are manufactured in India:

(a) Supply of goods against Advance Authorisation/Advance Authorisation for annual requirement / DFIA;
(b) Supply of goods to EOU / STP / EHTP / BTP;
(c) Supply of capital goods to EPCG Authorisation holders;
(d) 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;
(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 stage of commercial production, and spares to extent of 10% of FOR value to fertilizer plants;
(f) 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;
(g) Supply of goods to power projects and refineries not covered in (f) above;
(h) 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;
(i) Supply to projects funded by UN Agencies; and
(j) Supply of goods to nuclear power projects through competitive bidding as opposed to ICB.