What Is Deemed Export [Complete Guide]

If you what to know what is Deemed export and what is the difference between Deemed export and Export?

You are on the right page!

Here you will get a complete answer for your all queries related to Deemed export.


Hello, friends welcome to another fresh article on “Indiancustoms.info”, Here in this article I explained everything about Deemed export.

A deemed export is totally different than normal export, many peoples think that deemed export and normal export are the same.

But deemed export is totally different than normal export. Which I explained in this article.

After reading this article you will understand what is deemed export and the difference between export & deemed export.

Also Read:- Most Profitable Export Business In India [Ultimate Guide]

What Is Deemed Export

What Is Deemed Export?

Deemed Export refers to those transactions in which the goods supplied do not leave the country and payment for such supplies is received either in Indian rupees or in free foreign exchange.

For example, Dealer “A” (located in Gujarat) sells goods to Dealer “B” which is an EOU (located in Rajasthan). B in turn, sell the goods to customer “C” (located in Germany).

Deemed Export

The supply by A to B is treated as deemed export and supply by B to C is treated as exports.

According to the provisions of chapter 6 of the foreign trade policy goods sell to EOU consider as a deemed export instead of a domestic sell.

Only goods sell to EOU are covered under deemed export, services sell to EOU are not considered as deemed export and goods must be manufactured in India.

Bellow mentioned all supplies are also considered as deemed export.

  • Supply of goods by a registered person against advance authorization.
  • Suppy of capital goods by registered person against export promotion copital goods authorisation.
  • Supply of goods by a registered person to export oriented unit.
  • Suppy of gold by a bank or public sector undertaking specified in the notification 050/2017- customs, dated 30th june 2017 (as ammended) against advance authorisation.

A deemed export is not Zero-rated supplies by default, unlike the regular exports.

Hence all supplies notified as a supply for deemed export will be subject to levy of taxes i.e. such supplies can be made on payment of tax and cannot be supplied under a bond/LUT.

However, the refund of tax paid on the supply regarded as deemed export is admissible to either the supplier or the recipient.

I hope now you understand what is deemed export and diffrence between deemed export & normal export.If anyone has any suggestions or queries please comment in the comment box.

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