Deemed Export Benefit Scheme
Deemed Export Scheme, which has been in operation for more than two decades, is largely an Indian concept. Deemed Exports refers to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in foreign exchange. The Deemed export benefit include rebate on duty chargeable on imports or excisable material used in the manufacture of goods which are supplied to the eligible projects.
‘Deemed Export Benefit’ Scheme benefits are availed of by units in Power, Petroleum refinery, fertilizer and Nuclear Power Projects. They are also availed by supply of goods to projects financed by multi-lateral or bilateral agencies.
The policy aims to create a level playing field for the domestic industry vis-à-vis direct import by providing duty free inputs or exemption/refund of duty paid on goods manufactured in India. Deemed Export Scheme is primarily an instrument for import substitution. It helps in creating manufacturing capability, value addition and employment opportunities in country