Deemed Export:

As per the FTP 2015-20 Chapter No. 7, deemed export refers to those transactions in which goods supplied do not leave the country & payment received either in INR or foreign currency, provided goods are manufactured in India.

Manufacturer or Sub-contractors supplying the goods to the following entity are termed as “Deemed Export”.

  • Supply of goods against advance authorization for Annual Requirement / Duty-Free Import Authorization (DFIA)
  • Supply of goods to EOU / EHTP / STP / BTP.
  • Supply of capital goods against EPCG authorization
  • Supply of goods to project financed by Department of Economic Affairs
  • Supply of goods to mega power project
  • Supply of goods to nuclear power project
  • Supply of goods to the project financed by United Nation approved by GOI.
  • Supply to projects funded by UN agencies.

Benefits of Deemed Exporter:

They are eligible for

  • Advanced authorization for annual requirement
    Duty-Free Import Authorization (DFIA)
  • Deemed export drawback.
  • Refund of Terminal Excise Duty