Deemed export & terminal duty

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WE SUPPLY GOODS TO A UNIT UNDER DEEMED EXPORT. THE PARTY'S TERMS & CONDITION SAYS THAT ' SELLER SHALL CLAIM TERMINAL DUTY BENEFIT FROM DGFT. BUYER WILL NOT CLAIM CENVAT AGAINST THIS INVOICE.

I WANT TO KNOW WHAT TERMINAL DUTY HE IS TALKING ABOUT. IS IT ON INPUTS OR FINISHED GOODS.

Replies (2)

Terminal duty is the duty paid on the finished goods supplied to SEZ/EOU which isshown in the invoice butnot recovered from the buyer. This duty is refunded by DGFT Please refer Chapter 8 of export/iprt procedure.

a declaration is given on the invoice by the client that they have not taken any cenvat benefit


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