Is Deemed Export Benefit is applicable to the Vendor of the Sub-Contractor

[Arti Gupta]

Sir(s)/Madame,

We are in manufacturing of equipments for the power projects.We have been availing the benefits of the Deemed Exports as per Chapter 8 of the Foreign Trade Policy for our supplies to Mega Power Project.

As per Para 8.6.2 of the Foreign Trade Policy 'Supplies made by the Indian Sub-Contractor of the Main Contractor is eligible for the benefits of the Deemed Export.'

Am I correct to conclude that the Vendor of the Sub-Contractor is not eligible for the Deemed Export Benefits?

AI Summary

Manufacturing company seeks clarity on vendor eligibility for Deemed Export Benefits under Chapter 8 of Foreign Trade Policy. A manufacturing company involved in power projects is seeking clarification on the eligibility for Deemed Export Benefits under Chapter 8 of the Foreign Trade Policy. They understand that supplies by an Indian sub-contractor to a main contractor qualify for these benefits. However, they question whether a vendor of the sub-contractor is also eligible. The forum received one reply from an individual asking if the issue had been clarified, but no definitive answer was provided regarding the vendor's eligibility.