Export Incentive Schemes
Deemed Exports Benefits
Advisory Services
Certain domestic supply transactions in India are treated as Deemed Exports under the Foreign Trade Policy because the goods supplied are manufactured in India but supplied to specified projects or organisations that are eligible for export-related benefits.
Under the deemed exports framework, suppliers may receive export-related incentives even though the goods do not physically leave the country. These benefits are designed to support domestic manufacturing and ensure that suppliers participating in strategic or government-backed projects are not disadvantaged compared to exporters.
However, identifying eligible transactions, managing documentation requirements, and claiming applicable benefits under the deemed exports framework can be complex. Businesses often require professional advisory to ensure proper compliance with Foreign Trade Policy provisions.
Shangrila Corporate Services Pvt Ltd provides structured advisory to help businesses identify eligible deemed export transactions, prepare claims for available benefits, and ensure compliance with applicable DGFT regulations.
Overview
What are Deemed Exports?
Deemed exports refer to transactions in which goods supplied within India are treated as exports for the purpose of receiving certain benefits under the Foreign Trade Policy.
These transactions qualify for export-related benefits even though the goods remain within the country.
Examples of deemed export transactions include supplies to:
- Export Oriented Units (EOUs)
- Projects funded by multilateral or bilateral agencies
- Nuclear power projects or mega power projects
- Advance Authorisation holders
- EPCG license holders
The deemed export framework operates under provisions administered by the Directorate General of Foreign Trade.
Suitable For
Who Should Consider Deemed Export Advisory?
Advisory services related to deemed exports are relevant for businesses supplying goods to entities or projects that qualify under the policy provisions.
Typically Suitable For:
Businesses supplying capital goods under EPCG authorisations
Companies supplying goods to government or infrastructure projects
Manufacturers supplying goods under Advance Authorisation
Key Benefits
Key Benefits of Deemed Exports
Eligible suppliers may receive several benefits under the deemed export framework:
01
Refund of terminal excise duty or applicable taxes (where applicable)
02
Duty drawback benefits for eligible supplies
03
Advance Authorisation for deemed export supplies
04
Recognition of supply transactions under export promotion frameworks
05
Improved competitiveness for domestic manufacturers supplying to export-linked projects
These benefits help ensure that domestic suppliers participating in strategic projects receive policy support similar to exporters.
Process
How Deemed Export Benefits Work
The deemed export benefit process typically involves identifying eligible transactions and submitting claims under the applicable provisions of the Foreign Trade Policy.
The process generally includes:
01
Identification of supply transactions eligible as deemed exports
02
Documentation of supply details and contractual arrangements
03
Filing claims for applicable incentives or benefits
04
Verification by relevant authorities
05
Approval and disbursement of eligible benefits
Proper documentation is critical to ensure that claims are accepted and processed without delays.
Common Pitfalls
Common Challenges Businesses Face
Companies dealing with deemed export transactions often face challenges such as:
Uncertainty regarding eligibility of supply transactions
Difficulty identifying applicable benefits under policy provisions
Documentation gaps during claim submission
Compliance issues during verification by authorities
Delays in processing benefit claims
Professional advisory helps businesses avoid procedural errors and manage claims efficiently.
How We Help
Our Approach to Deemed Exports Advisory
Shangrila Corporate Services Pvt Ltd provides structured support to help businesses identify eligible transactions and maximise benefits available under the deemed exports framework.
Our Services Include:
Eligibility Assessment
Evaluation of supply transactions to determine qualification as deemed exports.
Benefit Identification
Identification of incentives or benefits available under applicable policy provisions.
Documentation Advisory
Guidance on preparing required documentation and compliance records.
Claim Preparation Support
Assistance in preparing and submitting claims for eligible benefits.
Regulatory Compliance Guidance
Advisory on maintaining compliance with Foreign Trade Policy provisions.
Documentation
Documents Required to Get Started
Import Export Code (IEC)
Supply contracts or purchase orders
Tax invoices and delivery documentation
Project approval documents (if applicable)
Supporting documentation required for claim submissions
Optimise Benefits from Deemed Export Transactions
Businesses supplying goods to eligible projects or entities can benefit significantly from the deemed exports framework under the Foreign Trade Policy. Connect with our team to:
- Evaluate eligibility for deemed export benefits
- Prepare documentation for incentive claims
- Ensure compliance with DGFT regulations
FAQ
Frequently Asked Questions
They are domestic supply transactions that are treated as exports for the purpose of receiving policy benefits.
No, the goods remain within India but qualify for certain export-related benefits.
Suppliers involved in eligible transactions under the Foreign Trade Policy provisions.
Benefits may include duty drawback, tax refunds, or advance authorisation depending on the transaction.
Professional advisory helps ensure eligibility verification, accurate documentation, and smooth claim processing.
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Why SCS
Why Work with
Shangrila Corporate Services Pvt Ltd
Expertise in Foreign Trade Policy provisions and export incentive schemes
Experience assisting exporters and manufacturers with DGFT compliance
Structured approach to documentation and regulatory advisory
Practical support for businesses participating in export-linked supply chains
We help businesses optimise benefits under trade promotion schemes while ensuring regulatory compliance.
Get in Touch
If your organisation supplies goods to projects or entities eligible under the deemed export framework, expert advisory can help you identify available benefits and manage claims efficiently.