Deemed Export

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Sirs.,

We are manufacturers. We now have got an order from a Australian company . The materials against this order shoud be supplied by us to a company in Bangalore. The Australian company has procured a full contract on which they are offloading a certain part on us. The payment will be made by the Australian company in Freely convertible currency.The bangalore party will not be making any payment to us.

This transaction does not fall under Policy 8.2. But can this be considered a deemed export because we receive the payment in foreign currency and the goods dont leave india.

 

please clarify

Replies (1)

DEAR SIR,

 

IN ACCORDANCE WITH FOREIGN TRADE POLICY PROCEDURE 2009-2014

 

In respect of supplies made by sub-contractor to main Claiming deemed contractor under paragraphs 8.2(d), (e), (f), (g), (i) and (j), Export benefits by main contractor may make payment to sub-contractor and Sub-contractor 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.

REGARDS

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