Deemed Exports :8.

1 Deemed Exports refers to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange . Categories of Supply : 8.2 ollowing categories of supply of goods !y main " su!#contractors shall !e regarded as $Deemed Exports under %&, provided goods are manufactured in India'

D I)+

(upply of goods against )dvance )uthorisation " )dvance )uthorisation for annual re*uirement " (upply of goods to EOUs or (%&s or E,%&s or -%&s+ (upply of capital goods to holders of )uthorisations under EPCG Scheme+ (upply of goods to pro.ects financed !y multilateral or !ilateral agencies " unds as notified !y Department of Economic )ffairs /DE)0, 1o under International 2ompetitive -idding /I2-0 in accordance with procedures of those agencies " unds, where legal agreements provide for tender evaluation without including customs duty+ (upply and installation of goods and e*uipment /single responsi!ility of turn3ey contracts0 to pro.ects financed !y multilateral or !ilateral agencies " unds as notified !y DE), 1o under I2-, in accordance with procedures of those agencies " unds, which !ids may have !een invited and evaluated on the !asis of Delivered Duty &aid /DD&0 prices for goods manufactured a!road+

(upply of capital goods, including in unassem!led " disassem!led condition, as well as plants, machinery, accessories, tools, dies and such goods which are used for installation purposes till stage ofcommercial production, and spares to extent of 145 of 67 value to fertili8er plants+ (upply of goods to any pro.ect or purpose in respect of which the 1o , !y a notification, permits import of such goods at 8ero customs duty+ (upply of goods to power pro.ects and refineries not covered in /f0 a!ove+ (upply of marine freight containers !y 1445E69 /Domestic freight containers#manufacturers0 provided said containers are exported out of India within : months or such further period as permitted !y customs+

(upply to pro.ects funded !y 9; agencies+ and /.0 (upply of goods to nuclear power pro.ects through competitive !idding as opposed to I2-. -enefits of deemed exports shall !e availa!le under paragraphs /d0, /e0, /f0 and /g0 only if the supply is made under procedure of I2-. Benefits for Deemed Exports 8.< Deemed exports shall !e eligi!le for any " all of following !enefits in Deemed Exports respect of manufacture and supply of goods *ualifying as deemed exports su!.ect to terms and conditions as in ,-& v1'# 1. )dvance )uthorisation " )dvance )uthorisation for annual re*uirement" D I). 2. Deemed Export Draw!ac3. <. Exemption from terminal excise duty where supplies are made against I2-. In other cases, refund of terminal excise duty will !e given.

-enefits to Deemed Export 8.=.1 1. 7espect of supplies made against )dvance the (upplier )uthorisation " D I) in terms of paragraph 8.2/a0 of %&, supplier shall !e entitled to )dvance )uthorisation " D I) for intermediate supplies. If supplies are made against )dvance 7elease 6rder /)760 or -ac3 to -ac3 >etter of 2redit issued against )dvance )uthorisation " D I) in terms of paragraphs =.1.11 and =.1.12 of %&, suppliers shall !e entitled to !enefits listed in paragraphs 8.</!0 and /c0 of %&, wherever is applica!le. Deleted.

2.

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8 ! " In respect of supply of goods to E69 " E,%& " (%& " -%& in terms of paragraph 8.2/!0 of %&, supplier shall !e entitled to !enefits listed in paragraphs 8.</a0, /!0 and /c0 of %&, whichever is applica!le. 8 ! # In respect of supplies made under paragraph 8.2/c0 of %&, supplier shall !e entitled to the !enefits listed in paragraphs 8.</a0, /!0 and /c0 of the &olicy, whichever is applica!le.

8!! 1. In respect of supplies made under paragraphs 8.2/d0, /f0 and /g0 of %&, supplier shall !e entitled to !enefits listed in paragraphs 8.</a0, /!0 and /c0, whichever is applica!le. In respect of supplies mentioned in paragraph 8.2/d0, supplies to pro.ects funded !y such agencies alone, as may !e notified !y DE), 1o , shall !e eligi!le for deemed export !enefits. ) list of such agencies"funds is given in $ppendix %# of &BP '%. -enefits of deemed exports under para 8.2/f0 of %& shall !e applica!le in respect of items, import of which is allowed !y Do7 at 8ero customs duty su!.ect to fulfillment of conditions specified under ;otification ;o. 21"2442# 2ustoms dated 1.<.2442, as amended from time to time. (upply of 2apital goods and spares upto 145 of 67 value of capital goods to power pro.ects in terms of paragraph 8.2/g0, shall !e entitled for deemed export !enefits provided the I2- procedures have !een followed at Independent &ower &roducer /I&&0 " Engineering and &rocurement 2ontract /E&20 stage. Benefit of deemed exports shall also !e availa!le for renovation " moderni8ation of power plants. (upplier shall !e eligi!le for !enefits listed in paragraph 8.</a0 and /!0 of %&, whichever is applica!le. ,owever, supply of goods re*uired for setting up of any mega power pro.ects as specified in (.;o. =44 of Do7 ;otification ;o. 21"2442# 2ustoms dated 1.<.2442, as amended, shall !e eligi!le for deemed exports !enefits as mentioned in paragraph 8.</a0, /!0 and /c0 of %&, whichever is applica!le, if such mega power pro.ect is ' 1. )n inter state %hermal &ower &lant of capacity of 14441? or more+ or 2. )n inter state ,ydel &ower &lant of capacity of @44 1? or more. (upplies under paragraph 8.2/g0 of %& to new refineries !eing set up during ;inth &lan period and spilled over to %enth &lan period, shall !e entitled for deemed export !enefits in respect of goods mentioned in list 1A specified in (.;o. 228 of ;otification ;o. 21"2442#2ustoms dated 1.<.2442, as amended from time to time. (upplier shall !e eligi!le for !enefits listed in paragraphs 8.</a0 and /!0 of %&, whichever is applica!le.

2.

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8 ! ( In respect of supplies made under paragraph 8.2/e0 of %&, supplier shall !e eligi!le for !enefits listed in paragraph 8.</a0 and /!0 of %&, whichever is applica!le. -enefit of deemed exports shall !e availa!le in respect of supplies of capital goods and spares to ertili8er &lants which are set up or expanded " revamped " retrofitted " moderni8ed during ;inth &lan period. -enefit of deemed exports shall also !e availa!le on supplies made to ertili8ers &lants, which have started in the 8th " Bth &lan periods and spilled over to 14th &lan period. 8 ! ) (upplies of goods to pro.ects funded !y 9; agencies covered under &ara 8.2/i0 of %& are eligi!le for !enefits listed in paragraph 8.</a0 and /!0 of %&, whichever is applica!le. 8 ! * In respect of supplies made to ;uclear &ower &ro.ects under &ara 8.2/.0 of %&, the supplier would !e eligi!le for !enefits given in &ara 8.</a0, /!0 and /c0 of %&, whichever is applica!le. (upply of only those goods re*uired for setting up any ;uclear &ower &ro.ect specified in list =< at (.;o. =41 of +otification +o "%,"--". Customs dated % # "--"/ as amended from time to time having a capacity of ==41? or more as certified !y an officer not !elow ran3 of Coint (ecretary to Dovernment of India in Department of )tomic Energy, shall !e entitled for deemed exports !enefits in cases where procedure of competitive !idding /and not I2- 0 has !een followed.