DEEMED EXPORT BENEFIT

[MAHESH AGARWAL]

Deemed Export benefits are covered by Chapter 7 of FTD. Clause 7.02.(e) : B - Categories of Supply by Main/Sub contractor(s) allows benefit of deemed export like Advance Authorization/ DFIA, Duty drawback or Refund/Exemption of Terminal Excise Duty. Projects financed by multilateral/Funds notified by DEA, MoF are allowed for Deemed Export benefit. However the condition posed in para 7.02.E.(iii) is that the supplies covered shall be under International Competitive Bidding (ICB) in accordance with the procedures of those Agencies/ Funds.

The query here is that a Infrastructure Project of road which is financed by Asian Development Bank (ADB) (an approved agencies under Appendix 7A of the FTP )has been evaluated under National Competitive Bidding (NCB) process instead of (ICB) as mentioned above, by Publilc Works, Ports & Inland water Transport Department, Govt of Karnataka , India , known as ( Karnataka State Highways Improvement Project (KSHIP)), will be eligible for benefits of Deemed Export as prescribed under para 7.04 of the Foreign Trade Policy.

[MUKUND THAKKAR]

Sir,

Are u eligable to availing the benifit of Deem export if project funded by WB/ ADB /JBIC.

[MAHESH AGARWAL]

Yes. We are eligible as project is financed by ADB.

AI Summary

Deemed export benefit confirmed where project financing by an approved multilateral agency enables access to prescribed incentives. Deemed export benefits under the Foreign Trade Policy apply to supplies to projects financed by approved multilateral agencies, permitting incentives such as Advance Authorization, DFIA, duty drawback or exemption/refund of terminal excise duty; para 7.02.E.(iii) contemplates that such supplies should be under International Competitive Bidding, yet the respondent confirmed eligibility for deemed export benefits where the project is financed by an approved agency (ADB).