I (Meaning and importance of Exports) Unit Structure

14.8 DEEMED EXPORTS 
 
14.8.1 MEANING 
Deemed exports are not physical exports. It involves those 
transactions of goods within the country as specified by the 
Government of India. In other words goods supplied do not leave 
the country and the payments for such goods are made in India, by 
the recipient of the goods. The deemed exports treated as exports 
for certain facilities and benefits under the EXIM policy. 
Deemed exports refers to those transactions in which the 
goods supplied do not leave the country and the payment for such 
goods are made in India by the recipient of the goods in Indian 
rupees. Demand exports are not physical exports. 
14.8.2 CATEGORIES OF DEEMED EXPORTERS 
a) Supply of goods against duty free licenses issued under the 
Duty Exemption Scheme. 
b) Supply of goods to units located in EPZs or EHTPs or STPs 
or to 100% EOUS. 
c) Supply of capital goods to holders of licenses under the 
EPCG scheme. 
d) Supply of goods to the power, oil and gas sectors duty 
approved by Ministry of finance. 
e) Supply of goods to any project approved by ministry of 
finance which permits import of such goods at zero customs 
duty. 
f) Supply of capital goods and spares to fertilise plants if the 
supply is made under the procedure of international 
competitive bidding. 
g) Supply of goods to projects financed by multilateral or 
bilateral agencies / funds as notified by the Department of 
Economic Affairs, Ministry of Finance under international 
competitive bidding. 
14.8.3 BENEFITS TO DEEMED EXPORTERS
a) The supplier can claim special Import License at the rate of 
6% of FOB value. 

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b) The supplier can claim duty drawback. 
c) The supplier can claim refund or excise duty paid on raw 
materials which are used in the production of “end” products. 
d) The supplier can claim special Import License / Advance 
Intermediate License. 
e) The supplier can import duty free specified inputs. In order to 
claim Deemed Export Benefits, the supplier is required to 
produce documentary evidence about realization of export 
proceeds through banks. 
f) The benefit of deemed exports is also available in respect of 
supplies of capital goods and spares to fertilizer plants 
completed during the Ninth plan period.