Deemed exports – supply to projects under International Competitive Bidding – scope widened

By Vijay Kumar

As per para 8.2(d) of the Foreign Trade Policy,

“Supply of goods to projects financed by multilateral or bilateral agencies/funds as notified by the Department of Economic Affairs, Ministry of Finance under International Competitive Bidding in accordance with the procedures of those agencies/funds, where the legal agreements provide for tender evaluation without including the customs duty”

will be treated as deemed exports.

Now

“Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies/funds as notified by Department of Economic Affairs, Ministry of Finance under International Competitive Bidding in accordance with the procedures of those agencies/funds, which the bids may have been invited and evaluated on the basis of Delivered Duty Paid (DDP) prices for the goods manufactured abroad”.

will also be treated as deemed exports.

DGFT NOTIFICATION NO. 54 (RE-05)/2005-2009, Dated : March 17, 2006

Consequent to the above, the Appendix 22 C and Appendix 27 C are amended to add,

“Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies/funds as notified by Deptt. of Economic Affairs, Ministry of Finance under International Competitive Bidding in accordance with the procedures of those agencies/funds, which the bids may have been invited and evaluated on the basis of Delivered

Duty Paid (DDP) prices for the goods manufactured abroad”.

DGFT PUBLIC NOTICE NO. 93 (RE-2005) /2004-2009, Dated: March 17, 2006