Deemed exports un, Customs - Exim - SEZ

[Mathi Bharathi]

Dear Sir / Madam

We are a manufacturer and supplied the goods by EPCG authorisation from our supplier . Hence the supply is treated as Deemed Exports. Now Please confirm that shall we apply for duty drawback through DGFT ? also we have applied for GST refunds... Kindly advice

Posts / Replies

[Shilpi Jain]

Query is a little confusing. Whether you are the supplier? Then you are mentioning that you have supplied goods against EPCG from supplier? or customer?

[Mathi Bharathi]

Mam,

We are a manufacturer and we are supplying our goods to buyer against EPCG license. Buyer having the EPCG License and they are procuring our goods EPCG Invalidation letter. ok

Now we are eligible for Deemed exports. Right..So shall we claim for Duty drawback by DGFT

[KASTURI SETHI]

Dear Sir,

(1) Duty drawback on account of deemed export is admissible against ARO (Advance Release Order) as per Chapter 7 --Para no. 7.04 read with para no. 7.03 (b) of Foreign Trade Policy, 2023. Also read Para No. 7.02 (A)(a).

(2) Further some restrictions have been laid down in Para Nos. 7.06 and 7.07 of FTP, 2023. Some restrictions have also been laid down in Drawback Rules, 2017. All should be read. A few relevant restrictions are given below. Drawback claim is not allowed :-

(i) If Customs duty has not been paid on inputs or the manufacturer has availed other benefit in respect of duty paid on inputs or services.

(ii) If imported inputs were obtained under Advance Authorization without payment of duty.

(iii) So many restrictions have been laid down in Drawback Rules, 2017. All are worth reading before arriving at any decision.

Disclaimer : Posted for academic interest and not for any court proceedings.

[KASTURI SETHI]

Drawback claim application should be filed with the jurisdictional Customs Commissionerate and not with DGFT office.