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about Export & deemed export procedure

Former Member
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Dear Sd Gurus,

I want sme info abt export business senario.

Waiitng for your favorable reply.

Regards

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi,

Deemed Exports

Use

You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty, but only if the goods are accompanied by an ARE-3 document.

Activities

Customizing

Carry out the IMG activities in Customizing for Logistics u2013 General, under Tax on Goods Movements  India  Business Transactions  Exports Under Excise Regulations  Deemed Exports and u2026  Printouts of ARE Documents.

Master Data

Enter your customers' deemed export licenses in the system.

Day-to-Day Activities

In order to qualify for an exemption from excise duty, all deemed exports must be accompanied by the appropriate paperwork, including an ARE-3 document, and you must complete the deemed export within the rewarehousing period. To process and track ARE-3s, use the ARE Documents functions, following the process described under ARE-3 Processing.

You can only issue an ARE-3 with reference to a customer's license. The system automatically keeps track of the license balance.

There are two ad-hoc reports that you can use for tracking licenses and ARE-3s: Deemed Export License Summary and Aging Analysis for ARE Documents.

It is notification under which an Merchant exporter or exporter export goods without payment of duty and goods moves out of their premises without paying any duty. Bonds can be based on different type of export sales. ARE-1 Bond for Export and ARE-3 Bond for Deemed Export.

As per cahpter 8 of Foreign Trade policy, Deemed Exports" refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange.

The following categories of supply of goods by the main/ sub-contractors shall be regarded as "Deemed Exports" under this Policy, provided the goods are manufactured in India:

(a) Supply of goods against Advance Licence/Advance Licence for annual requirement/DFRC under the Duty Exemption /Remission Scheme;

(b) Supply of goods to Export Oriented Units (EOUs) or Software Technology Parks (STPs) or Electronic Hardware Technology Parks (EHTPs) or Bio Technology Parks (BTP);

(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 Department of Economic Affairs, Ministry of Finance under International Competitive Bidding in accordance with the procedures of those agencies/ funds, where the legal agreements provide for tender evaluation without including the customs duty;

(e) Supply of capital goods, including in unassembled/ disassembled condition 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 FOR value to fertiliser plants.

(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.

(g) Supply of goods to the power projects and refineries not covered in

(f) above.

(h) Supply of marine freight containers by 100% EOU (Domestic freight containersu2013manufacturers) provided the said containers are exported out of India within 6 months or such further period as permitted by the Customs; and

Supply to projects funded by UN agencies.

(j) Supply of goods to nuclear power projects through competitive bidding as opposed to International Competitive Bidding

Thanks and Regards,

Sateesh

Hope this will helpful and Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

Edited by: VijayaSateeshKumar Kandula on Aug 5, 2008 3:36 PM

Lakshmipathi
Active Contributor
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Assuming that you would like to know about exports in general apart from SAP, please go thru these links

[Export Procedure|http://www.indiandata.com/trade_policy/export_procedures.html]

[Export Procedures|http://www.indianindustry.com/trade-information/documents-required.html]

thanks

G. Lakshmipathi

former_member204513
Active Contributor
0 Kudos

Hi Sap Sd,

Please go through this link it will help you about deemed export process in SAP

http://help.sap.com/saphelp_47x200/helpdata/en/7d/08683c54e89846e10000000a11402f/frameset.htm

I hope it will help you,

Regards,

Murali.