| Policy
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8.1 |
Policy relating to Deemed Exports is in Chapter-8 of FTP. |
Criteria
for claiming
Deemed Export
|
8.2.1 |
In respect of supplies under paragraph 8.2(a) of FTP, procedure for issue of
ARO and Back-to-Back Inland Letter
of Credit is given in paragraphs 4.14 and 4.15 of HBP v1. |
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8.2.2 |
In respect of supplies under paragraph 8.2(b) of FTP and DFIA,
deemed export benefits may be claimed from DC or
RA concerned. Advance Authorisation and DFIA shall be claimed from the
concerned RA. Such supplies shall be certified by receiving agencies. |
| 8.2.3 |
In respect of supply of capital goods under paragraph 8.2 (c) of
FTP, supplier shall produce a certificate from EPCG
Authorisation holder evidencing supplies / receipt of 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 FTP, application for Advance
Authorisation shall be accompanied with a Project Authority Certificate
in Appendix 27. Payment against such supplies shall be certified by
Project Authority concerned as in Appendix 22 C. |
Procedure for
claiming Deemed
Export Drawback &
Terminal Excise Duty
Refund / Exemption |
8.3.1 |
Procedure for claiming benefits under paragraphs 8.3(b) and (c) of
FTP shall be as under:-
“An application in ANF 8, along with prescribed documents, shall be made
by Registered office or Head office or a branch office or manufacturing
unit of supplier to RA concerned. Where applicant is branch office or
manufacturing unit of a supplier, it shall furnish self certified copy
of valid RCMC. Recipient may also claim drawback benefits on production
of a suitable declaration from supplier, in the format given in Annexure
III of ANF 8. In case of TED refund, a declaration, in the format given
in Annexure II of ANF 8, regarding non-availment of CENVAT credit, shall
be given, by the recipient of goods, in addition to other prescribed
documents.”
Vide DGFT PUBLIC NOTICE No.35/(RE 2010)/2009-14, DT.01-03-2011.
(i) An application in ANF 8 along with prescribed documents, shall be
made by supplier to RA concerned.
Recipient may also claim benefits on production of a suitable disclaimer
from supplier along with a self declaration in the format given in
Annexure II of ANF 8, regarding non-availment of CENVAT credit in
addition to prescribed documents.
(ii) In case of supplies under paragraphs 8.2(a), (b) & (c) of FTP,
claim shall be filed against receipt of payment
through normal banking channel as in Appendix 22B. Claims should be
filed within a period of twelve months from the date of payment. In
cases where payment is received in advance, last date for submission of
application may be correlated with date of supply instead of date of
receipt of payment. Claim can be filed ‘Invalidation Letter / ARO wise’
against individual Authorisations within the time limit as specified
above. 100% TED refund may be allowed after 100% supplies
have been made physically and payment received least up to 90%. However,
grant of deemed export
duty drawback will be limited to the extent of payment received.
(iii) In respect of supplies under paragraph 8.2(b) of FTP, where
supplier wants to claim benefits from RA, RA
shall allow deemed export benefits to DTA supplier, on receipt of
certified copies of Central Excise attested
invoice as proof of supplies made and / or Central Excise attested CT3
form and proof of validity of LoP.
For supply of High Speed Diesel / Furnace Oil from Depots of domestic
oil Public Sector Undertakings
under Para 8.2 (b) of FTP, terminal excise duty shall be refunded on the
basis of duty paid certificate issued
by concerned domestic oil Public Sector Undertakings in the format given
in Annexure I to ANF 8. Duty
refund will be allowed for quantity of HSD / Furnace oil procured by EOU
/ EHTP / STP / BTP unit for its
production activities, as certified by concerned DC / Bond authorities.
(iv) In respect of supplies under categories mentioned in paragraphs
8.2(d), (e), (f), (g), (h), (i) & (j) of FTP,
claim may be filed either on the basis of proof of supplies effected or
payment received. Claims should be filed
within a period of twelve months from date of receipt of supplies by
project authority or from date of receipt
of the payment as per the option of applicant, either against a
particular project or all the projects. Claims
may also be filed where part payments have been received. 100% TED
refund may be allowed after
100% supplies have been made physically and payment received at least up
to 90%. However, grant of deemed
export duty drawback will be limited to the extent of payment received. |
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8.3.2 |
For claiming exemption from payment of terminal excise duty,
procedure prescribed by Central Excise authority shall be
followed. |
| 8.3.3 |
Where All Industry Rate of Drawback is not available or same is less
than 4/5th of duties actually paid on materials or
components used in production or manufacture of the said goods, an
application in ANF 8 along with prescribed
documents may be made to RA or DC, for fixation of brand rate.
Recipient may claim benefits on production of a suitable
disclaimer from supplier along with a self declaration in the format
given in Annexure II of ANF 8, regarding non-availment
of CENVAT credit in addition to prescribed documents. |
| 8.3.4 |
Claim application shall be filed along with application for fixation
of brand rate of duty drawback, in case brand rate is required to be
fixed. 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 |
RA may consider provisional payment up to 75% of drawback claim in
case of private companies and 90% in case of PSUs, pending fixation of
brand rate. |
| 8.3.6 |
Subject to procedure laid down in HBP, Customs and Central Excise
Duty Drawback Rules, 1995 shall apply mutatis
mutandis to deemed exports. |
Procedure for
claiming deemed
export benefits by
Sub-contractor |
8.4 |
In respect of supplies made by sub-contractor to main contractor under
paragraphs 8.2(d), (e), (f), (g), (i) and (j),
main contractor may make payment to sub-contractor and issue payment
certificate as in Appendix 22-C as Form 1-C.
However, for supplies under paragraph 8.2(d), (e), (f), (g) and (j), payment
certificate from main contractor shall not be
insisted for refund of terminal excise duty. Deemed export benefits to
sub-contractor would be available to the extent of
goods that are manufactured and supplied by him or outsourced from other
manufacturers, for value as indicated in Appendix 22-C of HBP v1. |
Payment of interest
on delayed refund
of Duty Drawback /
TED |
8.5 |
For payment of interest, in accordance with Para 8.5.1 of FTP, separate
application for claiming interest is not required and a single cheque for
main claim and interest can be issued to the claimant. However, separate
account will be maintained by RAs for the amount of interest disbursed by
them. |
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