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Government of India
Ministry of Commerce and Industry
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Policy Circular No. 11/2015-20
New Delhi, dated: 23.07.2018
To
All Regional Authorities
All Development Commissioners, SEZ,
All Export Promotion Councils/Commodity Bodies
Subject: Grant of Deemed Export Benefits for supplies to the projects funded by
Organizations such as JICA etc. under para 8.2(d) of the Foreign Trade Policy, 2009-14.
Department of Economic Affairs vide Public Notice No. 1(FT)IDEAl201 0 dated
05.05.2010 notified six organizations viz. International Bank of Reconstruction and
Development (IBRD) & International Development Association (IDA), International Fund
for Agricultural Development (IFAD), Asian Development Bank (ADB), Organization of
Petroleum Exporting Countries (OPEC), Yen credit channelized through Japan
International Co operational Agency (JICA) [Development component only] and Swedish
international development agency (SlDA) for the purpose of deemed export benefits
under para 8.2(d) of FTP, 2009-14 subject to the c~hdition that the supplies to projects
were made under ICB procedure only. To give effect to the DEA's Public Notice, DGFT
vide Public Notice No.6,? on 25th May, 2010 incorporated these agencies in the
. Appendix 13 of HBP Vol. I appearing in para 8.2(d) of FTP 2009-14 to beeligihle for
deemed export benefits under para 8.3 of FTP 2009-14.
2. However, the deemed export benefits for supplies made-to the projects funded by
these agencies were dissontinued in the new FTP 2015-20 notified on 1.4.2015 and only
three agencies viz. Intec.natio~al' Bank of Reconstruction and development (IBRD) and
International Development Association (IDA); and Asian Development Bank (ADB) (as
listed in Appendix -7 A) .were continued to be eligible agencies for deemed Export
Benefits in terms of para 7.02 (e) of FTP 2015-20.
3. Under para 8.3 of FTP 2009-14, deemed export supplies were eligible for any/all of
the following benefits in respect of manufacture and supply of goods qualifying as
deemed exports subject to terms and conditions as in HBP v1:-
(a) Advance Authorisation / Advance Authorisatio or annual requirement / DFIA.
(b) Deemed Export Drawback
(c) Exemption from terminal excise duty where -supplies are made against ICB. In
+other cases;-refund-ofterminat-excis'e 1loty will-be -given:-ExemptionironI'TEEl sha11 -
also be available for supplies made by an Advance Authorisation holder to a
manufacturer holding another Advance Authorization if such manufacturer, in turn,
supplies the product(s) to an ultimate exporter.
4. The supplies to the projects funded by JICA notified vide DGFT's Public Notice
No.67 dated 25th May, 2010 were made against ICB and hence were eligible for abinitio
exemption from payment of terminal excise duty under para 8.3(c) of FTP, 2009-
14. However, several representations were received stating that the supplies to projects
funded by JICA were not getting exemption. from TED from Jurisdictional excise
authorities. The issue was taken up with Department of Revenue. At field level, the
exemption from payment of Terminal Excise Duty for supplies to these agencies other
than IBRD, IDA and ADB were not available under relevant excise notifications even
though the supplies were under ICB. Further, since the projects were under ICB, the
RAs were not considering the application for refund of TED in accordance with the
, provisions of FTP.
5. The issue of refund/exemption of TED for supplies to the Projects funded by JICA
etc. (other than IBRD, IDA and ADB) under para 8.2(d) of FTP 2009-14 has been
considered in this Directorate in consultation with Department of Revenue and
Department of Economic Affairs. To honour the commitment made in the erstwhile FTP
2009-14, it has been decided, in relaxation of the provisions of para 8.3(c), to allow the
refund of Terminal Excise Duty, where exemption from payment of TED under relevant
excise notifications was notavailable, in respect of supplies made to the projects funded
by JICA etc. (other than IBRb, IDA and ADB) notified vide DGFT's Public Notice No.67
on 25tth May, 2010 for supplies made upto 31.3.2015.
6. All the Regional Authorities are advised to dispose the claims of applicants for the
supplies made up to 31.03.2015 under para 8.2(d) of FTP 2009-14 by way of refund of
Terminal Excise Duty (TED) for the projects funded by JICA etc. (other than IBRD, IDA
and ADB) provided those supplies are otherwise eligible under FTP, 2009-14.
7. This issues with approval of CompetentAuthority.
[File No. 01/92/180/16/AM-15/PC-VI]
Deputy Director General of Foreign Trade
Tel. No. 23061562 Ext 341
shobhit.g upta@gov.in
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