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?

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Deemed Export benefit: whether vendors supplying a subcontractor qualify given policy recognising supplies by Indian subcontractors. Whether the Deemed Export benefit applies to a vendor supplying a sub-contractor when paragraph 8.6.2 of the Foreign Trade Policy makes supplies by an Indian sub-contractor of the main contractor eligible; the query was submitted by a manufacturer for mega power projects and a request for clarification was recorded without a conclusive reply.