| Policy |
8.1 |
The Policy relating to Deemed Exports is given in Chapter-8 of the
Foreign Trade Policy. |
| Criteria for claiming Deemed Exports Benefits |
8.2.1 |
In respect of supplies under Paragraph 8.2(a) of the Policy, the
procedure for issue of ARO and Back-to-Back Inland Letter of Credit is
given in paragraphs 4.14 and 4.15 of the Handbook. |
|
8.2.2 |
In respect of supplies under paragraph 8.2(b) of the Policy and
DFIA/DFRC, the deemed export benefits may be claimed from the
Development Commissioner or the Regional Authority concerned. Advance
Authorisation, DFIA and DFRC shall be claimed from the concerned
Regional Authority. Such supplies shall be certified by the receiving
agencies. |
|
8.2.3 |
In respect of supply of capital goods under paragraph 8.2 (c) of the
Policy, the supplier shall produce a certificate from the EPCG
Authorisation holder evidencing supplies/ receipt of the manufactured
capital goods. |
|
8.2.4 |
In respect of supplies under categories mentioned in paragraphs
8.2(d),(e),(f),(g), (i) and ( j ) of the Policy, the application for
advance authorisation shall be accompanied with a project authority
certificate in Appendix - 27. The payment against such supplies shall be
certified by the Project Authority concerned in the prescribed format in
Appendix-22C. |
| Procedure for claiming Deemed Exports Drawback & Terminal Excise
Duty Refund/ Exemption from payment of Terminal Excise Duty. |
8.3.1 |
The procedure for claiming benefits under paragraph 8.3 (b) and (c)
of the Policy shall be as under:
- An application in the Aayaat Niryaat form along with the
documents prescribed therein, shall be made by the supplier to the
Regional Authority concerned. The recipient may also claim the
benefits on production of a suitable disclaimer from the supplier
along with a self declaration in Appendix 22C of Handbook regarding
non-availment of CENVAT credit in addition to the prescribed
documents.
- In case of supplies under paragraph 8.2(a), (b) & (c), the claim
shall be filed against receipt of payment through normal banking
channel in the form given in Appendix –22B. Such claims shall be
filed within a period of 6 months from the end of
monthly/quarterly/half yearly period reckoned from the date of
payment as per the option of the applicant. In cases where payment
is received in advance, last date for submission of application may
be correlated with the date of supply instead of date of receipt of
payment.
- In respect of supplies under paragraph 8.2(b) of the Policy
where the supplier wants to claim benefits from the Regional
Authority, the Regional Authority shall allow deemed export benefits
to the DTA supplier, on receipt of certified copies of Central
excise attested invoice as proof of supplies made and/or excise
attested CT3 form and proof of validity of LOP.
- In respect of supplies under categories mentioned in Paragraphs
8.2(d) (e) (f) (g) (h) (i) & (j) of the Policy, the claim may be
filed for the payment received/supplies effected during a particular
month/quarter/half year as per the option of the applicant either on
the basis of proof of supplies effected or payment received. The
claim may be filed either against a particular project or all the
projects. Such claims shall be filed within a period of 6 months
from the end of monthly/quarterly/half yearly period reckoned from
the date of receipt of the supplies by the project authority or from
the date of receipt of the payment as per the option of the
applicant. Such claims may also be filed where part payments have
been received.
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|
8.3.2 |
For claiming exemption from payment of terminal excise duty,
procedure prescribed by the Central Excise Authority shall be followed. |
|
8.3.3 |
Where All Industry Rate of Drawback is not available or the same is
less than 4/5th of duties actually paid on the materials or components
used in the production or manufacture of the said goods, the exporter/
supplier may apply for fixation of brand rate in the application form as
given in Aayaat Niryaat form to the Regional Authority or Development
Commissioner as the case may be. |
|
8.3.4 |
The claim application shall be filed along with the application for
fixation of brand rate of duty drawback in case brand rate is required
to be fixed. The provision of late cut under paragraph 9.3 and
supplementary claim under paragraph 9.4 shall also be applicable under
this sub-paragraph. |
|
8.3.5 |
Regional Authority may consider provisional payment to the extent of
75% of the drawback claim in the case of private companies and 90% in
the case of Public Sector Undertakings, pending fixation of Brand Rate. |
|
8.3.6 |
Subject to the procedure laid down in this Handbook, the Customs and
Central Excise Duty Drawback Rules, 1995 shall apply mutatis mutandis to
deemed exports. |
| Procedure for claiming deemed export benefit by Sub contractor |
8.4 |
In respect of supplies made by sub-contractor to the main contractor
under paragraph 8.2 (d) (e) (f) (g) (i) and (j), the main contractor may
make payment to the sub-contractor and issue payment certificate in the
form given in Appendix-22C as Form 1-C. However, for supplies under
paragraph 8.2(d) (e) (f) (g) and (j), the payment certificate from main
contractor shall not be insisted for refund of Terminal Excise duty. The
deemed exports benefits to the sub-contractor would be available to the
extent of goods that are manufactured and supplied by him or outsourced
from other manufacturers, for the value as indicated in Appendix 22C of
the Handbook. |