Government of India
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi – 110011
Policy Circular No.50/2009-2014 (RE 2010)
Dated: 28th December, 2011
To
All Regional Authorities (RAs);
CBEC & All Commissioners of Customs;
Exporting Community.
Subject: Clarification on Deemed Export benefits
when imported capital goods are directly supplied as such to Project Authority -
regarding.
1. Policy Interpretation Committee in its meeting held on 15.03.2011 had
inter-alia clarified as under:
“Issue of claiming Deemed Export benefits in cases of import made by the project
authority was discussed. After detailed deliberation, it was decided that if the
Bill of Entry is in the name of project authority deemed export benefits would
not be available (such cases will be ineligible for grant of Deemed Export
benefits). “
2. Deemed exports benefits are admissible in terms of paragraph of 8.2 of FTP,
if goods are manufactured in India. In the case of non mega power projects, for
instance, if capital goods such as boilers, turbines, generators (BTGs) are
being supplied to project authorities, then deemed export benefits are
admissible only if such BTGs are manufactured in India. If these are imported
and supplied as such, then such supplies do not amount to deemed exports, and
hence deemed export benefits will not be admissible.
3. Accordingly, in continuation to PIC clarification, as given in paragraph 1
above, it is further clarified that in case capital goods have been imported by
the contractor/sub-contractor and supplied as such to project authorities, then
custom duties paid on such imports can not be refunded back as deemed export
duty drawback under paragraph 8.3(b) of FTP.
4. All Regional Authorities may take note of this clarification for
processing/review of deemed export claims.
5. This issues with the approval of Hon’ble Minister of Commerce, Industry &
Textiles.
(L.B. Singhal)
Jt. Director General of Foreign Trade
Tel: 011-23062671
E-mail: lb.singhal@nic.in
(Issued from F.No. 01/92/180/168/AM05/PC VI)