We refer to Para 7.02 B(ii) of the FTP, which allows deemed export benefits to 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 (DEA), MoF, for which bids have been invited and evaluated on the basis of Delivered Duty Paid (DDP) prices for goods manufactured abroad. Since installation is not specifically mentioned here, are we eligible for any ‘deemed export’ benefits against supply of such services?
?- The relevant part of Para 7.01(a) says that supply of goods as specified in Paragraph 7.02 below shall be regarded as ‘deemed exports’, provided goods are manufactured in India. Thus, supply of services outside the purview of ‘deemed exports’. The DGFT Policy Circular no. 32 dated August 20, 1998, clarifies that, if within the scope of work for turnkey civil construction project, supply of goods is also included, then supply of such goods shall be entitled for deemed exports benefits, if otherwise admissible. However, the services portion of civil construction work, even in turnkey project, would not be eligible for deemed export benefits.
We have obtained advance authorisation for deemed exports, under which, we intend to import duty free, only 2 of our 4 inputs. We have already paid imported stocks of the other 2 inputs. Can we claim drawback of the duty paid on the inputs under Para 4.15 of FTP?
?- For claim of duty drawback, the application form ANF-7A requires you to give a declaration prescribed at Annexure-II of the said form ANF-7A stating “we also certify that we have not issued any Advance Authorisation/Duty Free Import Authorisation in respect of the aforesaid supply of goods and have not availed any benefit thereon”. In my opinion, such a declaration should be called for only where the claims for drawback are all industry rates, and not where claims in accordance with the said Para 4.15. I think DGFT should look into the matter and clarify the matter, as the benefits given by the FTP are being denied through a declaration prescribed in the drawback application form.
We refer to the DGFT Trade Notice no. 20/2015-16 dated January 2, 2026, which says that the Interest Subvention for pre- and post-shipment Export Credit intervention under the Export Promotion Mission – Niryat Protsahan is hereby launched with immediate effect. Our bankers, however, say that they have no instructions to that effect. What is the correct position?
?- The interest subvention schemes not yet operational. The same trade notice no. 20 contains guidelines for implementation of the scheme and says that the scheme is being operationalised through the RBI. Para 4 of the trade notice says, “concerned stakeholders are invited to submit comments and suggestions on draft guidelines within 30 days.” So, the DGFT will finalise the guidelines and then RBI will issue necessary instructions to the banks. The benefits may be given retrospectively from January 1, 2026.
 "SME chatroom: Para 4.15 of FTP vs ANF 7A - Procedure defeats policy intent")
