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Definition
10.1 "Deemed Exports" refers to those transactions in which the goods
supplied do not leave the country. Categories of Supply
10.2 The following categories of supply of goods by the main/
sub-contractors shall be regarded as "Deemed Exports" under this
Policy, provided the goods are manufactured in India:
(a) supply of goods
against Advance Licence/DFRC under the Duty Exemption /Remission
Scheme;
(b) Supply of goods to Export Oriented Units (EOUs) or units located
in Export Processing Zones (EPZs) or Special Economic Zone (SEZs) or
Software Technology Parks (STPs) or to Electronic Hardware Technology
Parks (EHTPs);
(c) supply of capital goods to holders of licences under the Export
Promotion Capital Goods (EPCG) scheme;
(d) supply of goods to projects financed by multilateral or bilateral
agencies/funds as notified by the Department of Economic Affairs,
Ministry of Finance under International Competitive Bidding in
accordance with the procedures of those agencies/ funds, where the
legal agreements provide for tender evaluation without including the
customs duty;
(e) supply of capital goods, including in unassembled / disassembled
condition as well as plants, machinery, accessories, tools, dies and
such goods which are used for installation purposes till the stage of
commercial production and spares to the extent of 10% of the FOR
value to fertiliser plants.
(f) supply of goods to any project or purpose in respect of which the
Ministry of Finance, by a notification, permits the import of such
goods at zero customs duty coupled with the extension of benefits
under this chapter to domestic supplies;
(g) supply of goods to the power and refineries not covered in (f)
above and coal, hydrocarbon, rail, road, port, civil aviation,
bridges and other infrastructure projects provided minimum specific
investment is Rs.100 crores or more;
(h) supply of marine freight containers by 100% EOU (Domestic freight
containers-manufacturers) provided the said containers are exported
out of India within 6 months or such further period as permitted by
the Customs; and
(i) supply to projects funded by UN agencies.
The benefits of deemed exports shall be available under paragraph (d)
(e) (f)
and (g) only if the supply is made under the procedure of
International
Competitive Bidding (ICB).
Benefits for Deemed Exports 10.3 Deemed exports shall be eligible for
the
following benefits 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.