>>EXIM POLICY 1997-2002
CHAPTER 10
DEEMED EXPORTS
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.
(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.
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