Deemed exports

[Mathi Bharathi]

Dear Sir / Madam

We are planning for import material by advance authorisation and our finished product will be supplied to DTA against Invalidation of EPCG (buyer). Its it deemed exports.? Shall eligible for deemed exports benefits? kindly advice!!!

[Shilpi Jain]

Is your advance authorisation for deemed exports?

[Mathi Bharathi]

Dear Madam

Yes its our advance authorisation and we will supply the material to DTA against Invalidation of EPCG. Is it deemed exports

[KASTURI SETHI]

What are  the finished goods to be supplied against invalidation EPCG letter ?

[Mathi Bharathi]

Dear sir

Engineering products like industrial valves to be supply and that industrial valves as capital goods for buyer 

[Shilpi Jain]

My question was in the context that AA can be give for exports or for deemed exports. 

This question of yours would be relevant only if your AA is for deemed exports.

[Shilpi Jain]

As per para 7.03 of the FTP I see that the invalidation option is available only for AA. Is it available for EPCG too?

[Mathi Bharathi]

Our customer will purchase our product by presenting Invalidation letter  of EPCG .

To produce our product we need to import some components and we are planning to take AA for duty exemption .  Hope clear now and advice

[KASTURI SETHI]

Sh.Mathi Bharathi Ji,

You have wrongly posted your information against Issue ID 119366. Get it deleted .

[KASTURI SETHI]

Sh.Mathi Bharathii Ji,

The supply against invalidation letters is treated as deemed exports. An EPCG Authorization holder can procure capital goods from a domestic manufacturer through invalidation letter and would be eligible for deemed export benefits as per Para No.7.03 of FTP, 2023 and Para No. 5.07 of FTP, 2023 and Para No.7.04 of FTP, 2023

Para No. 5.07 of FTP, 2023

5.07 Indigenous Sourcing of Capital Goods and benefits to Domestic Supplier

"A person holding an EPCG Authorisation may source capital goods from a domestic manufacturer either through Invalidation Letter or through Advance Release Order. Such domestic manufacturer shall be eligible for deemed export benefits under paragraph 7.03 of FTP, and as may be provided under GST Rules under the category of deemed exports. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfillment of positive NFE by said EOU as provided in Para 6.08 (a) of FTP."

[Shilpi Jain]

Agree with kasturiji's post

[KASTURI SETHI]

Madam Shilp Jain,

Thanks a lot. Your concurrence with my views at serial 9 above is recognition of   hard work, especially, in view of non-response from the querist.

Regards.

AI Summary

Supplying Finished Products to Domestic Tariff Area with EPCG Invalidation Qualifies as Deemed Exports Under FTP 2023. A discussion on a forum revolves around whether supplying finished products to a Domestic Tariff Area (DTA) against an Invalidation of EPCG qualifies as deemed exports and is eligible for corresponding benefits. The initial query seeks advice on this matter, and responses clarify that such transactions are considered deemed exports. It is noted that an EPCG Authorization holder can procure capital goods domestically through an invalidation letter, making them eligible for deemed export benefits as specified in the Foreign Trade Policy (FTP) 2023. The conversation emphasizes the importance of correctly categorizing such transactions under the FTP guidelines.