Deemed Export – Example of a Deemed Exporter and an Exporter

By | December 10, 2025
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Deemed Exporter and the Exporter – Product Plastic Bottles

ABC (deemed exporter /trader / manufacturer of plastic bottles) supplies bottles to XYZ, an Exporting  company executing under SEZ unit in India that is notified under Foreign Trade Policy (FTP) as eligible for deemed export treatment.

Step-by-step Process of Deemed Exporter to the Exporting company

  1. Enquiry & PO

    • XYZ issues PO/reference to a tender with project details. PO mentions the project is World Bank funded and will qualify as a deemed export supply.

  2. Eligibility Check

    • ABC asks for project sanction letter / letter from project authority confirming project funding and procurement eligibility.

  3. Supply Execution

    • ABC procures raw polymer (if needed) and produces/plugs bottles as per spec.

  4. Pre-dispatch Certs

    • XYZ provides project authorization / contract copy and confirms whether XYZ or ABC will claim benefits.

  5. Invoicing

    • ABC issues invoice with remark “Deemed Export under FTP — supply to World Bank funded project.” and attaches PO and project contract reference.

  6. Delivery & Acceptance

    • Goods delivered; XYZ signs delivery acceptance / inspection certificate.

  7. Payment

    • XYZ pays ABC in INR through bank; ABC obtains bank statement / payment advice.

  8. Claiming by ABC

    • ABC files GST refund and/or duty drawback / TED refund if applicable, providing invoice, project contract, buyer declaration, delivery & payment proofs.

  9. Follow Up & Receipt

    • Authorities verify and release refund.

  10. Records

  • ABC maintains documentation.

Documents ABC must collect (CHECKLIST)

  1. Purchase Order from XYZ (showing AA/EPCG/Project ref).

  2. Copy of buyer’s authorization (AA / EPCG / EOU certificate / project contract / tender).

  3. Tax Invoice (mentioning deemed export / FTP clause).

  4. Buyer declaration / Non-availment certificate (if buyer is NOT claiming the benefit).

  5. Delivery proof (signed challan, GR, LR, inspection / acceptance certificate).

  6. Proof of payment (bank statement / remittance advice).

  7. GST returns (GSTR-1, GSTR-3B) and reconciliation.

  8. Any CA certificate or declaration if required by GST/DGFT for the amount.

  9. Packing list / test certificates (for technical supplies like bottles).

  10. Any tender / contract / project sanction letter (for projects).

Government Benefits for Deemed Exporter – For ABC company / Firm

Eligible for Deemed Export Benefits, such as:

  • Refund of duties

  • IGST refund

  • Duty drawback

  •  Terminal Excise Duty refund (if applicable)

The Exporting Company / Firm will claim his set of Government Benefits as per his finished products.

In conclusion Deemed Exports are an important part of India’s Foreign Trade Policy, helping local industries grow while supporting export production and national infrastructure.
By offering export-like benefits for domestic supplies, the government encourages manufacturers to buy and produce more within India.

In simple terms:

If a domestic supply supports exports or strategic projects, the government treats it as an export – even if the goods never leave India.

Please Read Part 1 for better understanding