Let’s say a manufacturer in Maharashtra supplies machinery to a company located in a Special Economic Zone (SEZ) in India. The company uses this machinery to produce goods to be sold to a buyer in the United States. The transaction between the Maharashtra manufacturer and the SEZ company is treated as a deemed export, while the sale of goods to the U.S. buyer is classified as an actual export.
The Export and Import (EXIM) Policy defines deemed exports as goods manufactured in India that are sold within the country, with payment accepted in either Indian rupees or foreign currency.
The Advantages of Deemed Exports
Deemed exports offer several benefits to manufacturers and suppliers, as per belarus phone number list the guidelines outlined by the Ministry of Commerce & Industry. Below are the key advantages:
Advance Licensing Opportunities
Suppliers involved in deemed exports can obtain licences such as Advance Authorisation, Advance Authorisation for annual requirements, or Duty-Free Import Authorisation (DFIA). These licences allow duty-free import of raw materials and other inputs, helping you manage costs. You can also get an Advance Licence for intermediate supplies, deemed exports, or a Duty-Free Replenishment Certificate (DFRC) for smoother trade operations.