Categories of Supply

<< Back

Categories of Supply

Supply of goods under following categories (a) to (d) by a manufacturer

and under categories (e) to (h) by main / sub-contractors shall be regardedas “Deemed Exports”:

A. Supply by manufacturer:

(a) Supply of goods against Advance Authorisation / AdvanceAuthorisation for annual requirement / DFIA;

(b) Supply of goods to EOU / STP / EHTP / BTP;

(d) Deleted

B. Supply by main / sub-contractor (s):

(e) (i) Supply of goods to projects financed by multilateral orbilateral Agencies / Funds as notified by Department of Economic Affairs (DEA), MoF, where legal agreements providefor tender evaluation without including customs duty.

ii) Supply and installation of goods and equipment (singleresponsibility of turnkey contracts) to projects financed bymultilateral or bilateral Agencies/Funds as notified byDepartment of Economic Affairs (DEA), MoF, for which bidshave been invited and evaluated on the basis of Delivered DutyPaid (DDP) prices for goods manufactured abroad.

(iii) Supplies covered in this paragraph shall be under InternationalCompetitive Bidding (ICB) in accordance with procedures ofthose Agencies / Funds.

(iv) A list of agencies, covered under this paragraph, for deemedexport benefits, is given in Appendix 7A.

(f) (i) Supply of goods to any project or for any purpose in respect ofwhich the Ministry of Finance, by erstwhile Notification No.12/2012 –Customs dated 17.3.2012, as amended from time totime, had permitted import of such goods at zero customs duty(with exemption of both BCD and CVD) subject to conditionsspecified therein and which are continued under the CustomsNotification No. 50/2017-Customs dated 30.6.2017 withexemption of zero basic customs duty and subject to conditionsmentioned in the said new notification. Benefits of deemedexports shall be available only if the supply is made underprocedure of ICB.

(ii) Supply of goods required for setting up of any mega powerproject, as specified in the list 31 at Sl. No. 598 of Departmentof Revenue Notification No. 50/2017-Customs dated 30.6.2017,as amended from time to time and subject to conditionsmentioned therein, shall be eligible for deemed export benefitsprovided such mega power project conforms to the thresholdgeneration capacity specified in the above said Notification.

(iii) For mega power projects, ICB condition would not be mandatory if the requisite quantum of power has been tied up through tariff based competitive bidding or if the project has been awarded through tariff based competitive bidding.

(g) Supply of goods to United Nations or International organization fortheir official use or supplied to the projects financed by the said United Nations or an International organization approved byGovernment of India in pursuance of section 3 of United Nations(Privileges and Immunities Act), 1947. List of such organization andconditions applicable to such supplies is given in the Customsnotification no. 84/97-Customs dated 11.11.1997, as amended fromtime to time. A list of Agencies, covered under this paragraph, isgiven in Appendix-7B.

(h) Supply of goods to nuclear power projects provided:

(i) Such goods are required for setting up of any Nuclear PowerProject as specified in the list 32 at Sl. No. 602, Customsnotification no. 50/2017-Customs dated 30.6.2017, asamended from time to time and subject to conditionsmentioned therein.

(ii) The project should have a capacity of 440 MW or more.

(iii) A certificate to the effect is required to be issued by an officernot below the rank of Joint Secretary to Government of India, inDepartment of Atomic Energy.

(iv) Tender is invited through National competitive bidding (NCB)or through ICB.