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

DTA Pharma Exporter Can Claim EPCG Benefits for SEZ Supplies; Deemed Exports Eligible for Additional Incentives A DTA pharma export company in Bangalore inquired about claiming EPCG benefits for products billed to an SEZ organization. Responses clarified that EPCG benefits can be claimed for such transactions, as supplies to SEZs are considered exports or zero-rated supplies. It was noted that export proceeds for deemed exports must be realized in freely convertible currency, except for SEZ supplies, which can be realized from the SEZ unit's foreign currency account. Additionally, deemed exports are eligible for benefits such as Advance Authorisation, Deemed Export Drawback, and refund of terminal excise duty, subject to specific conditions.