POLICY CIRCULAR NO. 32 (RE : 98)/1997-2002, DT. 20/08/1998

Refund of terminal excise duty under Deemed Exports scheme

Sub:

Refund of terminal excise duty under Deemed Exports scheme and availibility of deemed exports benefits for supply of goods/services to Civil Construction Projects.

Sir,

Representations have been received from individual exporters as well as clarifications sought by different regional licensing authorities with regard to availibility of deemed exports benefits for supply of goods/services to Civil Constructions projects. The issue whether supply of goods/services to Civil Construction project should be entitled for deemed export benefits or not has been examined in detail in this office. It is clarified that supply of goods under para 10.2(d) of Exim Policy are entitled for deemed exports benefits. Therefore, if within the scope of a work of Turn Key Civil Construction Project, supply of goods is also included then supply of such goods shall be entitled for deemed exports benefits, if otherwise admissible. However, services portion of civil construction work even in a Turn Key Project would not be eligible for deemed export benefits.

This issues with the approval of DGFT.

Sd/-
(L.B.SINGHAL)
DY.DIRECTOR GENERAL OF FOREIGN TRADE

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