Deemed export

This discussion clarifies whether suppliers to 100% Export Oriented Units (EOUs) can supply goods without paying duty using a Letter of Undertaking (LUT) or Bond. The consensus is that supplies to EOUs are considered 'deemed exports' and typically attract a tax rate of 0.1% under specific conditions, rather than being eligible for duty-free supply via LUT/Bond which is generally reserved for direct exports or supplies to SEZs.