Coverage

Para 10.2 of the EXIM Policy, (March "2000 edn.) terms the following supplies by main/sub contractors as deemed exports, provided the goods are manufactured in India.

(a) Supply of goods against Advance Licences/DFRC (Duty Free Replenishment Certificate) issued under the Duty Exemption/ Remission Scheme;

(b) Supply of goods to Export Oriented Units (EOUs) or Special Economic Zones (SEZs) or units located in Export Processing Zones (EPZs) or Software Technology Parks (STPs) or to Electronic Hardware Technology Parks (EHTPs).

(c) Supply of capital goods to holders of licences under the Export Promotion Capital Goods (EPCG) scheme.

(d) Supply of goods to projects financed by multilateral or bilateral agencies/Funds as notified by the Deptt. of Economic Affairs, Ministry of Finance, under international compettive bidding in accordance with the procedures of those agencies/Funds, where the legal agreements provide for tender evaluation without including the customs duty.

The Deptt. of Economic Affairs has notified that supply of goods to projects financed by following agencies will be considered as deemed exports.

1. International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA)

2. International Fund for Agricultural Development (IFAD)

3. Asian Development Bank (ADB)

4. Organisation of Petroleum Exporting Countries (OPEC) Fund

5. Yen credit channelised through Overseas Economic Cooperation Fund (OEFC)

6. Swedish International Development Agency (SIDA)

(e) Supply of capital goods, including in unassembled/disassembled conditions as well as plants, machinery, accessories, tools, dies and such goods which are used for installation purposes till the stage of commercial production and spares to the extent of 10% of the f.o.b. value to fertiliser plants (see below under "conditions").

(f) Supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notification, permits the import of such goods at zero customs duty coupled with the extension of benefits under this (Chapter 10) of the EXIM Policy to domestic supplies.

(g) Supply of goods to the power and refineries not covered in (f) above and coal, hydrocarbon, rail, road, port, civil aviation, bridges and other infrastructure projects provided minimum specific investment is Rs.1 00 crores or more.

(h) Supply of Marine Freight Containers by 100% EOU (Domestic freight containers- manufacturers) provided the said containers are exported out of India within 6 months or such further period as permitted by the Customs, and

(i) Supply to projects funded by UN agencies.