Why Deemed export is required?

• To provide a level playing field to domestic manufacturers:Deemed exports provide domestic suppliers export benefits, empowering India’s industry against imports by providing duty-free inputs and tax exemptions.
• To facilitate exports indirectly: Deemed exports facilitate indirect exports by supplying raw materials, components, and capital goods to exporting units.
• To promote specified infrastructure projects: Deemed exports incentivize domestic suppliers to contribute to critical infrastructure projects financed by multilateral or bilateral agencies.
• To simplify procedures:Deemed exports simplify procedures and reduce compliance burden by providing export benefits without physical export.
• To provide tax benefits: Deemed exports offer tax benefits by allowing GST refunds, reducing the tax burden on domestic suppliers.

Benefits of deemed Export:

• Exemption or Refund of Excise Duty: Deemed exports offer exemption or refund of excise duty, preserving supplier’s working capital and enhancing competitiveness.
• Advance Licensing Opportunities: Deemed exports enable advanced licenses for intermediary supply, deemed export, and DFRC, streamlining trade operations and cost management.
• Special Import License Eligibility: Deemed exports make manufacturers eligible for special import licenses, enabling them to acquire inputs and maintain business continuity.
• Deemed Export Drawback Scheme: The Deemed Export Drawback Scheme offers refunds of excise duty and special import licenses, providing additional incentives to suppliers.
• Exemption for EPCG License Holders:Deemed exports allow suppliers to EPCG license holders with zero duty to enjoy benefits, facilitating trade arrangements while adhering to regulations.

Required documents:

• Invoices
• EOU
• Bill of Entries
• e-BRC
• Copy of signed tax invoice
• Letter of Undertaking