Deemed Export Benefit

[N Balachandran]

 the  projects which are qualified for Deemed Export benefit under chapter 8 (2) (g) .Pl clarify, the EPC contractors who executes the contract can avail the deemed export benefit ?. EPC contractor is not a registerred under Central Excise as they don't manufacture any thing at site. 

Mere fabrication , assembling and erecting the equipments for power plant, will it qualified for Deemed export benefit  even though there is no manufacturing acitivity is involved at site.  Pl claify what is definition for manufacturing under FTP

 

With regards

 

N.Balachandran

[Surender Gupta]

I think, you should be eligible for Deemed Export benefits if all other conditions and procedures are fulfilled. You may go through the amended Foreign Trade Policy or Procedure in this site.

[Radha Arun]

Definition of manufactuire in FTP:

9.36 "Manufacture" means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, re-packing, polishing, labelling, Re-conditioning repair, remaking, refurbishing, testing, calibration, re-engineering. Manufacture, for the purpose of FTP, shall also include agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining.

AI Summary

Deemed export benefit: on-site fabrication and assembly may qualify if FTP manufacture definition and compliance requirements are met. Qualification for deemed export benefits depends on satisfying FTP conditions and procedures; on-site fabrication, assembly and erection by EPC contractors may qualify where those activities fall within the FTP definition of manufacture, which expressly includes fabricate, assemble, process, repair, refurbish, testing and related processes.