No TED Refund under Deemed
Exports when ab initio Exemption Available
[DGFT Notification No. 04 dated 18th April 2013]
Subject: Amendments in Paragraph 8.3 (c) and
Paragraph 8.4 of the FTP pertaining to deemed exports scheme.
In exercise of
the powers conferred by Section 5 of the Foreign Trade (Development & Regulation)
Act, 1992, as amended, read with paragraph 1.3 of the Foreign Trade Policy,
2009-2014, the Central Government hereby makes the following amendments in
Foreign Trade Policy, 2009-2014.
2. The
existing paragraphs 8.3 (c) and 8.4 in the FTP are substituted by amended
paragraphs 8.3(c) and 8.4 as given below:
(i) Existing
Paragraph 8.3 (c)
“Exemption from terminal excise duty where supplies
are made against ICB. In other cases, refund of
terminal excise duty will be given. Exemption from TED shall also be available
for supplies made by an Advance Authorisation holder
to a manufacturer holding another Advance Authorisation
if such manufacturer, in turn, supplies the product(s) to an ultimate
exporter.”
Amended
Paragraph 8.3 (c)
“Refund of
terminal excise duty will be given if exemption is not available. Exemption
from TED is available to the following categories of supplies:
(i) Supplies against ICB;
(ii) Supplies
of intermediate goods, against invalidation letter, made by an Advance Authorisation holder to another Advance Authorisation
holder; and
(iii) Supplies
of goods by DTA unit to EOU / EHTP / STP / BTP unit
Thus such
categories of supply which are exempt ab initio will
not be eligible to receive refund of TED”.
(ii) Existing Paragraph 8.4
“Following
table shows the benefits available to different categories of supplies as
mentioned in Para 8.2 above. In respect of such supplies supplier shall be
entitled to the benefits listed in paragraphs 8.3 (a), (b) & (c) of the
Policy, whichever is applicable.”
Relevant sub-para
of 8.2 |
Benefit available as given in Para 8.3,
whichever is applicable |
||
|
(a) |
(b) |
(c) |
|
|
(a) |
Yes (for intermediate supplies) |
Yes (against ARO or Back to Back letter of
credit) |
Yes (Against ARO or Back to Back letter of
Credit) |
|
(b) |
Yes |
Yes |
Yes |
|
(c) |
Yes |
Yes |
Yes |
|
(d) |
Yes |
Yes |
Yes |
|
(f) |
Yes |
Yes |
Yes |
|
(h) |
No |
Yes |
Yes |
|
(i) |
Yes |
Yes |
No |
|
(j) |
Yes |
Yes |
Yes |
Amended
Paragraph 8.4
“Following table
shows the benefits available to different categories of supplies as mentioned
in Para 8.2 above. In respect of such supplies supplier shall be entitled to
the benefits listed in paragraphs 8.3 (a), (b) & (c) of the Policy,
whichever is applicable.”
Relevant sub-para
of 8.2 |
Benefit available as given in Para 8.3,
whichever is applicable |
||
|
(a) |
(b) |
(c) |
|
|
(a) |
Yes (for intermediate supplies against an
invalidation letter) |
Yes (against ARO or Back to Back letter of
credit) |
(i) Exemption in case of invalidation (ii) Refund in case of ARO or back to back
letter of credit |
|
(b) |
Yes |
Yes |
Exemption |
|
(c) |
Yes |
Yes |
Refund |
|
(d) |
Yes |
Yes |
Exemption |
|
(f) |
Yes |
Yes |
(i) Exemption (ii) Exemption, if ICB. Refund, if without ICB. |
|
(h) |
No |
Yes |
Refund |
|
(i) |
Yes |
Yes |
No |
|
(j) |
Yes |
Yes |
Refund |
3. Effect of this amendment:
When ab initio exemption is available, benefit of TED refund
will not be given.