Deemed Export Services under DGFT

Overview

Deemed Exports are a special category under India’s Foreign Trade Policy (FTP) where supplies made within the country are treated at par with physical exports for the purpose of granting benefits. Although the goods do not cross international borders, these transactions are considered strategically important for national development—especially in sectors like infrastructure, manufacturing, and export promotion.
Such supplies are typically made to entities or projects that contribute directly or indirectly to foreign exchange earnings or industrial growth. These include Export Oriented Units (EOUs), Special Economic Zones (SEZs), holders of Advance Authorization or EPCG licenses, and projects funded by international agencies like the World Bank or Asian Development Bank.
From a regulatory perspective, Deemed Export provisions aim to neutralize the incidence of taxes and duties on domestic supplies used in export-linked or priority sectors. This ensures that Indian suppliers remain globally competitive even when supplying within the country.
However, claiming deemed export benefits involves strict compliance requirements, detailed documentation, and adherence to timelines prescribed by DGFT and GST authorities. Many businesses face challenges in identifying eligibility, preparing accurate documentation, and tracking claims.

1. Duty & Tax Refunds
Businesses can claim refunds on GST or previously applicable Terminal Excise Duty (TED), reducing the overall cost of supply. This directly improves profitability and pricing competitiveness.

2. Improved Cash Flow & Working Capital
Timely refunds and incentives ensure that funds are not blocked in taxes, enabling smoother business operations and better liquidity management.

3. Export-Level Incentives Without Physical Export
Deemed exports allow businesses to enjoy export-related benefits without the need to ship goods outside India, making it easier for domestic suppliers to grow.

4. Increased Market Opportunities
Suppliers can participate in large-scale government and internationally-funded projects without worrying about tax burdens, opening doors to high-value contracts.

5. Cost Competitiveness
By reducing the embedded tax cost, businesses can offer more competitive pricing, which is especially important in tender-based projects.

 

1. Eligibility Check
We assess whether your transaction qualifies as deemed export as per the Directorate General of Foreign Trade guidelines. This ensures you proceed under the correct category and avoid future rejection.

2. Document Collection
All necessary documents such as invoices, purchase orders, and certificates are gathered and verified. Proper documentation is crucial to ensure smooth processing and compliance.

3. Application Filing
The deemed export application is filed online on the DGFT portal with accurate details. Careful submission helps in minimizing errors and delays.

4. Query Handling
Any queries or deficiencies raised by authorities are addressed promptly. Timely responses help in faster approval of the application.

5. Approval & Benefit
Once approved, eligible refunds or incentives are processed. We also assist in tracking the status until the benefit is successfully received.
 

• Import Export Code (IEC) 
• GST Registration Certificate 
• Supply Invoices & Purchase Orders 
• Proof of Payment 
• Project Authority Certificate (PAC) 
• End User Certificate 
• Shipping / Delivery Challans 
• Bank Realization Certificate 
• Declaration / Undertaking as per DGFT norms

• Complete eligibility analysis report 
• Error-free application filing on DGFT portal 
• Documentation support & verification 
• End-to-end coordination with DGFT authorities 
• Timely updates on application status 
• Successful claim of eligible benefits