When any kind of technology or source code is been released to that of a foreign national inside the country then that can be known as Deemed export.
As there is deemed export there is deemed re-export. There is deemed re-export when the source code or the technology that was been released in during deemed export is released further to third party in another foreign national.
As per Deemed export rule, reviewing blueprints, sharing technology, tours of facilities are considered as potential exports. Deemed Export can have a positive impact on any business as technologies developed in foreign facility can help to obtain foreign contracts. For deemed export, a shipping bill named – ‘deemed application’ should be filled.
You should join any well-known institute who teaches about export-import business from well-experienced faculties. Because if you know the step by step procedure of how to export import then it will be easy to manage your international business.
Under following conditions an export license for the deemed export can be applied for –
- When an export license is been required for transferring the said technology to that of the foreign nation’s own country
- With the help of the license, the person intends to transfer the technology to the nation.
In deemed export, goods that are been supplied to a person, does not leave the country and the payment for such supplies is being received in foreign currency or in local currency.
Under FTP, following goods are been considered as Deemed Export –
- Supplies to that of STPs or BTPs or EHTPs or Export Oriented Units (EOUs)
- Supply of goods to those projects that are been financed by bilateral or multi- lateral agencies, MOF under ICB (International Competitive Bidding)
- Supply as well as installation of equipment and goods
- Supply of goods whether they are assembled or unassembled. It includes capital goods, machinery, plants, tools, dies as well as accessories.
- Supply of goods to that of the refineries and power projects
- Supply of goods against that of the Advances Authorization
- Supply of goods to that of the Authorized holders under EPCG Scheme
- Supply of marine containers
- Supplies to that of the projects funded by that of the United Nations Agencies
- Supply of goods to that of the nuclear power projects
- Supplies to zero custom duty projects
Benefits for Deemed Exports are being mentioned below –
- Deemed Export Drawback
- Advance Authorization for that of the annual requirements
- Where the supplies are made against ICB, exemption from that of the terminal excise duty.
Benefits to Deemed Exports are being mentioned below –
- If the supplies are being made against ARO (Advance Release Order), or to that of the Back to back LC that is been issued in place off Advance Authorization
- Benefits when supply is been made against DFIA or Supplier’s Advance Authorization.
Any person or company is subject to Deemed Export rule except the one who is –
- Been granted United States citizenship
- Been granted permanent residence visa
- Been granted status of a protected person. He or she can be a political asylum or a political refugee.