Chapter8 DEEMED EXPORTS
06 September 2004
In respect of supplies made under paragraph 8.2(c) of the Policy , the supplier shall be entitled to the benefits listed in paragraph 8.3(a), (b) and (c), of the Policy, whichever is applicable.
8.2.3
In respect of supplies made under paragraphs 8.2 (d), (f) and (g) of the Policy, the supplier shall be entitled to the benefits listed in paragraphs 8.3(a),(b) and (c),whichever is applicable.
8.2.4
In respect of supplies made under paragraph 8.2(e) of the Policy, the supplier shall be eligible for the benefits listed in paragraph 8.3(a) and (b) of the Policy.
8.2.5
The supplies of goods to projects funded by UN agencies covered under para 8.2(i) of the Policy are eligible for benefits listed in paragraph 8.3(a) and (b) of the Policy, whichever is applicable.
8.2.6
In respect of supplies made to Nuclear Power Projects, the supplier would be eligible for benefits given in para 8.3(a), (b) and (c) of the Policy , whichever is applicable.
8.3
In all cases of deemed exports, supplies shall be made directly to the designated Projects/ Agencies/ Units/ Advance Licence/EPCG licence holders. The sub-contractor may, however, make the supplies to the main contractor as per paragraph 8.5 instead of designated projects/ agencies.
Procedures/Criteria for claiming Deemed Exports Benefit
8.4
| (i) | The procedures for issue of ARO and Back to Back Inland Letter of Credit, in respect of supplies under paragraph 8.2(a) of the Policy, is given in paragraphs 4.14 and 4.15 of this Handbook. |
| (ii) | For the purpose of claiming deemed export benefits, if any, the indigenous supplier shall produce documentary evidence substantiating the realisation of proceeds from the recipient through the normal banking channel in the form given in Appendix-22A as well as a copy of ARO/ Non-negotiable copy of Back to Back Inland Letter of Credit. |
8.4.1
In respect of supplies under paragraphs 8.2 (b) of the Policy, the DTA unit shall claim the deemed exports benefit except the Advance Licence for deemed export and DFRC from the Development Commissioner. Advance licence for deemed exports and DFRC shall be claimed from the concerned licensing authority. For supplies to EHTP/STP/BTP, the DTA unit shall claim deemed export benefits from the licensing authority concerned. Such supplies shall be certified by the receiving agencies.
8.4.2
In respect of supply of capital goods under paragraphs 8.2 (c) of the Policy, 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 in the form given in Appendix- 22A.
8.4.3
In respect of supplies under categories mentioned in paragraphs 8.2(d),(e),(f),(g),(h) and (j) of the Policy, payment against such supplies shall be certified by the Project Authority concerned, as prescribed in form given in Appendix-12A.
However, in respect of supplies mentioned in paragraph 8.2(d), supplies to the projects funded by such agencies alone, as may be notified by Department of Economic Affairs, Ministry of Finance, shall be eligible for deemed export benefits. A list of such agencies/ funds is given in Appendix-33.
8.4.4
| (a) | Supplies under category mentioned in paragraphs 8.2 (e) of the Policy shall be for the fertilizer plants being set up at Kakinada, Gadepan, Babrala and Shahjahanpur and those which may have been set up or expanded/ revamped/ retrofitted/ modernised during the Eighth Plan period. |
| (b) | The benefit of deemed exports shall also be available in respect of supplies of capital goods and spares to fertilizer plants which are set up or expanded/ revamped/ retrofitted/ modernised during the Ninth Plan period. The benefit of deemed exports shall also be available on supplies made to Fertilizer plants, which have started in the 8th /9th Plan periods and spilled over to the 10th Plan period. |
8.4.5
The benefits of deemed exports under para 8.2(f) of the Policy shall be applicable in respect of items, import of which is allowed by the Department of Revenue at zero customs duty subject to fulfillment of conditions specified under Customs notification No.21/2002- dated 1/3/2002, as amended from time to time.
8.4.6
Supply of capital goods and spares upto 10% of the FOR value of the capital goods to the power projects in terms of paragraphs 8.2(g) shall be entitled for deemed export benefits provided the International Competitive Bidding procedures have been followed, at Independent Power Producer (IPP)/Engineering and Procurement Contract
(EPC) stage.The benefit of deemed exports shall also be available for renovation/ modernisation of power plants. The supplier shall be eligible for benefits listed in paragraph 8.3(a) and (b) of the Policy.
