EPCG benefits for Deemed Export

[B n Murali]

Dear Friends..

We are an DTA pharma export company based in bangalore, we billed some of the products to an SEZ organisation in bangalore.

Can we claim EPCG benefits, if yes can someone share the notifications.

Thanks & Regards

[YAGAY andSUN]

5.11 Realization of Export proceeds

Export proceeds shall be realized in freely convertible currency except for deemed exports supplies under Chapter 7. Exports to SEZ units /Supplies to developers/ co-developers irrespective of currency of realization would also be counted for discharge of Export Obligation. Realization in case of supplies to SEZ units shall be from foreign currency account of the SEZ unit.

[KASTURI SETHI]

Yes, you can claim benefit of EPCG. No need of notification because supply to SEZ is export/zero-rated supply.

[Rachit Agarwal]

Deemed Exports will be covered

As per Foreign Trade Policy

Export Obligation (EO)

Following conditions shall apply to the fulfilment of EO:-

Export shall be physical export. However, supplies as specified in paragraph 7.02 (a), (b), (e), (f) & (h) of FTP shall also be counted towards fulfillment of export obligation, along with usual benefits available under paragraph 7.03 of FTP.

Benefits for Deemed Exports

Deemed exports shall be eligible for any / all of following benefits in respect of manufacture and supply of goods, qualifying as deemed exports, subject to terms and conditions as given in HBP and ANF-7A:

(a) Advance Authorisation / Advance Authorisation for annual requirement / DFIA.

(b) Deemed Export Drawback for BCD.

(c) Refund of terminal excise duty for excisable goods mentioned in Schedule 4 of Central Excise Act 1944 provided the supply is eligible under that category of deemed exports and there is no exemption.

AI Summary

EPCG benefits available for deemed exports and supplies to SEZ, counting toward export obligation compliance. EPCG benefits apply to supplies treated as deemed exports and to supplies to SEZ units, which are treated as export/zero-rated supplies and count toward fulfilment of export obligation. Realization for SEZ supplies is from the SEZ unit's foreign currency account. Under the Foreign Trade Policy deemed exports listed in paragraph 7.02 may discharge export obligation and are eligible, subject to HBP/ANF-7A conditions, for benefits including Advance Authorisation, deemed export drawback for basic customs duty, and refund of terminal excise duty where applicable.