With a view to preventing any misuse of the 'deemed export' policy, the Union government has invited comments and suggestions from stakeholders on the review of the policy by June 28.
Literally, the term 'deemed exports' means transactions in which goods supplied by main/sub-contracts do not go out of the country and payment for such supplies is received either in Indian rupees or in free foreign exchange, with the condition that such goods should be produced in the country.
In an inter-departmental committee meeting held earlier this month, it was decided that the committee, constituted under the chairmanship of Dr Anup K. Pujari, Director-General of Foreign Trade, to review the policy, would seek the views of stakeholders by June 28.
The committee's terms of reference include the following: harmonisation of Customs notifications with the policy, improving the drafting of the policy as it exists today so that it is not amenable to multiple interpretations, and, specifically, to do away with ambiguities and repetitions and revisiting the issue of deemed exports to see whether it properly reflects the government's priorities.
The Foreign Trade Policy regards the following transactions as deemed exports: supply of goods to export-oriented units, software/hardware technology parks, projects funded by multilateral or bilateral agencies, as well as for power projects and refineries.
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