Deemed Exports

The transactions in which goods supplied do not leave the country and payment for the same is either received in INR or in free foreign exchange are categorized under deemed exports.

Supply of goods under following categories by a manufacturer and by main/ sub-contractors shall be regarded as ‘deemed exports’:-

• Supply of goods against Advance Authorization/ DFIA/capital goods against EPCG Authorization and to EOU.
• Supply to Project financed by multilateral/ bilateral agencies, ICB, UN Projects, Nuclear Power Projects, etc.

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 given in HBP and ANF-7A: 

1. Advance Authorisation / Advance Authorisation for annual requirement / DFIA.
2. Deemed Export Drawback.
3. Exemption from IGST till 31.3.2019
4. Refund of terminal excise duty for excisable goods mentioned in Schedule 4 of Central Excise Act 1944 provided the supply is eligible under that category of deemed exports and there is no exemption.

Supplier/ Recipient may file the application in ANF7A to the concerned RA. In case of supply of goods to EOU, claim is required to be filed to the concerned Development commissioner, if claimed by EOU.

Yes, supply of Cement & Steel also be eligible for Deemed Export benefits to such projects.

For supply to Advance/EPCG License holders & to EUO, etc., application can be filed within 12 months from the last date of such supplies. For supply to Projects, etc. within 12 months from the date of receipt of supplies by the project authority or from the date of receipt of payment by the supplier.

The exporters who were availing sealing at their factory premises under the system of supervised factory stuffing will be automatically entitled for self-sealing procedure. Exporter desirous of availing this procedure shall inform the jurisdictional Custom Officer for permission for self-sealing at the approved premises. Once the permission is granted, the exporter shall furnish only intimation to the jurisdictional Superintendent or Customs each time self-sealing is carried out at approved premises.