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 marine goods freight container by 100% EOU
- 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