Deemed Export Drawback-Benefits for Deemed Exporters
Benefits for Deemed Exporters
Deemed exporters shall be eligible for the following benefits vide Para 10.3 of the EXIM Policy, in respect of manufacture and supply of goods qualifying as deemed exports.
(a) Advance Licence for intermediate supply/deemed export.
(b) Deemed exports drawback.
(c) Refund of terminal excise duty.
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Benefits for specified supplies are tabulated below:
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Eligible Supplies Ref. Exim Benefits under Ref. EXIM Policy
Policy Para Deemed Exports Para
Scheme
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1. Supplies against
(a) advance licence 10.2(a) Deemed Export Drawback 10.3(b)
Refund of Terminal Excise Duty 10.3(c)
(b) DFRC 10.2(a) Deemed Export Drawback 10.3(b)
2. Supplies to EOUs, etc. 10.2(b) 1. Advance Licence for Inter- 10.3(a)
mediate Supply/Deemed
Export
2. Deemed Exports Drawback 10.3(b)
3. Supplies to EPCG 10.2(c) 1. Advance Licence for Inter- 10.3(a)
licence holder"s mediate Supply/Deemed
Export
2. Deemed Exports Drawback 10.3(b)
3. Refund of Terminal Excise 10.3(c)
Duty
4. Supplies to projects 10.2(d) 1, 2, 3 as above 10.3(a) to 10.3(c)
financed by multilateral/
bilateral agencies and Funds
5. Supplies to fertilizer 10.2(e) -do- 10.3(a) to 10.3(c)
plants
6. Supplies to any project 10.2(f) -do- 10.3(a) to 10.3(c)
or for purposes in respect
of which imports are
allowed at zero duty
7. Supply of CG and spares 10.2(g) 1. Advance Licence for Inter- 10.3(a)
to power projects (including 2. Supply/Deemed Export 10.3(b)
mediate supply for renovation/ Deemed Export Drawback
modernisation of power plants)
8. Supplies to new refineries 10.2(g) 1 and 2 above 10.3(a) and (b)
being setup during 9th Plan
period
9. Supplies of goods to 10.2(i) 1 and 2 above 10.3(a) and (b)
projects funded by UN
agencies
10. Supply by an Indian 10.2(d), (e), (f), Benefits at 1, 2, 3, above. 10.3 (a) to 10.3(c)
sub-contractor of (g) and (i)
an Indian or foreign
main contractor
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FOB Value of Supplies
For the purpose of granting export assistance, the value of supplies will be f.o.r. nearest railhead to the project site which is equivalent to the f.o.b. value of physical exports. For supplies to EOUs or units in Free Trade/EPZ Zones, EHTPs/STPs, the value on which assistance is admissible will be f.o.r. destination.
Evidence of Supplies
Supplies to EOUs, etc. In respect of deemed exports for supplies to EOUs/EPZ units, etc. at (b) above, such supplies shall be certified by the receiving agencies.
In respect of supply of CG under category (c) above, the supplier shall produce a certificate from the respective Excise authorities evidencing supplies/receipt of the manufactured capital goods and shall produce documentary evidence substantiating the realisation of proceeds from the EPCG licence holder through the normal banking channel.
For supplies under categories (d), (e), (f), (g) and (h) payment against such supplies shall be certified by the project authority in the prescribed form at Annexure 36.
In case of supplies under lease financing agreement the project authority"s certificate shall be jointly singed by the project authority and lease financing.
Date of Export
The date of supply of material will be taken as the date of export.
Licensing/Disbursement Authority
The licensing/disbursement authority for all kinds of assistance against deemed export shall be the Regional Licensing Authority concerned, except that DT A unit may claim deemed export drawback from the concerned Development Commissioner.
Where the rate of drawback is to be determined, the application should be addressed to the DGFT (Drawback Cell), Udyog Bhavan, New Delhi, with a copy to the RLA concerned.
Consolidated Applications
Applications for claiming Duty Drawback or Refund of Terminal Central Excise duty should be submitted simultaneously and together. However, advance licences for intermediate supp- ly/deemed export under Duty Exemption Scheme can be claimed separately.
Hence, the supplier should claim simultaneously all the incentives, except Advance Licen- ces, for supplies in India considered as Deemed Exports.
Supplementary Applications
Where a supplier does not claim all the facilities together in the consolidated application but prefers later on one or more applications for claiming other incentives, all such applications submitted subsequent to the date of submission of the initial application, will be treated as supplementary applications and may be subject to the Cuts in the quantum of assistance as prescribed in the relevant policy.
Exception. However, in cases where the project authority has made only part payment but the applicant has filed his application against the full supplies made, the supplier can submit supplemen- tary applications. Such Supplementary applications will not be subject to the cuts as described above.