FTP – Non Mega Power Projects - No Deemed Export Drawback

By Vijay Kumar

GOVERNMENT has amended para 8.4.4(iv), to include the words, "In respect of non mega power projects, supplier shall be eligible for benefit listed in paragraph 8.3 (a) of FTP."

Under Para 8.3, the following benefits are available:

(a) Advance Authorisation/Advance Authorisation for annual requirement/ DFIA.

(b) Deemed Export Drawback.

(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 Authorization if such manufacturer, in turn, supplies the product(s) to an ultimate exporter

Now, as per the amendment, supplies to non mega power projects shall henceforth be entitled to benefits for Deemed Exports only under Para 8.3(a) of FTP, viz., Advance Authorisation / Advance Authorisation for annual requirement / DFIA. They will not be eligible for deemed export drawback and exemption form Terminal excise Duty.

DGFT Notification No. 92/(RE-2010) /2009-2014, Dated: December 28, 2011