Deemed Exports

Deemed Exports are supplies that do not leave country, are paid in Indian Rupees, but are still deemed to have been exported, because they compete with the duty free imports. They are eligible for almost all benefits of physical exports but not for DEPB/FMS/FPS/SFIS and Sales Tax. The benefits of Advance Authorization / DFIA / EPCG (Export Promotion Capital Goods) and Drawback are available on inputs, while Exemption from or refund of Excise Duty is available on output.

Supplies to following are considered as deemed exports and they get the benefits as follows:

Supplies to EOU, BTP, EHTP, STP from DTA (Domestic Tariff Area) are considered deemed exports. This gives rise to certain benefits to the suppliers to the EOUs etc. They can get the Advance Authorization for their imports for the purpose of supplies to EOUs. They can also get the drawbacks for their supplies. The benefits can be taken by the suppliers or the EOU themselves.

Power Projects where International Competitive Bidding (ICB) procedures have been followed at the IPP or at EPC stage can get the benefit of Deemed Exports for their domestic procurement. The benefits could be in the form of Advance Authorization, or Duty drawback on the inputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. In addition the Mega Power Projects can get the benefits of excise duty refunds exemption or refunds also. The benefits can be taken by the suppliers or the Project owners themselves.

Projects funded as above where ICB procedures have been followed can get the benefit of Deemed Exports for their domestic procurement. The benefits could be in the form of Advance Authorization, or Duty Drawback on the Inputs and Excise Duty Refunds on the outputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. The benefits can be taken by the suppliers or the Project owners themselves. Such Projects could be infrastructure projects like Road Projects, Urban Improvement Projects etc.

Other purposes like Oil Exploration businesses for which duty free imports are allowed

Supplies to Projects as above where ICB procedures have been followed can get the benefit of Deemed Exports for their domestic procurement.

The benefits could be in the form of Advance Authorization or Duty Drawback on the Inputs and Excise Duty Refunds on the outputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. The benefits can be taken by the suppliers or the Project owners themselves.

Domestic suppliers to the above authorization holders can get the deemed export benefits. The benefits are Excise Duty Exemption for Advance Authorization holders and Excise Duty Refund for EPCG holders. In addition the indigenous supplier can import his own raw material duty free or can even get a drawback. The benefits can be taken by the suppliers or the Authorization holders.

We assist you in assessing the feasibility of the scheme for your purpose, complete planning, costing at the stage of tendering etc. Then we assist in carrying out all the formalities, documentation, application preparations, representation and coordination with the relevant authorities till receipt of relevant Authorizations or Duty Drawbacks in the hands of the client.

We can assist the suppliers to EOU or EOU themselves get the benefits of deemed exports like Drawback, Advance License, Excise refund etc. 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 benefit in the hands of the client.