Claiming deemed Export Benefits under FTP

Deepak Purohit

Deepak Purohit

Published on: May 4, 2026

Megha Makharia

Updated on: May 4, 2026

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Introduction

Financial benefits pertaining to Central Excise duty paid on goods manufactured in India and supplied to specified deemed export projects or recipients, can be claimed by making an application in accordance with the provisions of the Foreign Trade Policy (FTP) 2023. Deemed Exports are eligible for specific financial benefits as under:

APPLICABLE PROVISIONS

• Para 7.02, 7.03, 7.05, 7.06, 7.07, and 7.09 of Foreign Trade Policy (FTP), 2023
• Para 7.01, 7.02, 7.03, 7.04, 7.05, 7.06, 7.07, and 7.10 of Handbook of Procedures (HBP), 2023

MANDATORY REQUIREMENTS

• Valid Importer-Exporter Code
• A disclaimer certificate to be obtained from the supplier
• Claim can be filed only after payment is received in full
• Meet the specific eligibility conditions as prescribed.

PROCEDURE TO BE FOLLOWED (STEP-BY-STEP)

1. Obtain Importer-Exporter Code :

   Importer/ Exporter shall obtain valid Importer-Exporter Code (IEC) in case they do not already possess the same.

   (Please refer Article on Import-Exporter Code – https://www.lawrbit.com/article/importer-exporter-code/, for detailed information)

2. Check Eligibility Conditions to Claim for Refund :
   • Applicant shall ensure:
     • Direct supplies are made to the manufacturer, main, sub-contractor(s) and designated Projects/ Agencies/ Units/ Authorisation holder
     • Meeting the specific eligibility conditions, for availing financial benefits:

       Title	Conditions
       Eligibility for TED Refund	Applicable only to excisable goods specified in Schedule 4 of Central Excise Act, 1944 Supply must qualify under approved Deemed Export categories and must not be exempt from TED at the time of supply Recipient must not have availed CENVAT credit or rebate on such goods.
       Claim for Refund of Deemed Export Drawback	Eligible Drawback: Refund of duty paid on inputs used in manufacturing & supplying goods under deemed export Applicable Rate: All India Industry Rate as per DoR notification or Brand Rate basis Conditions: No CENVAT credit on excisable inputs, has been availed by the supplier of goods Brand Rate Basis submission of documents evidencing actual payment of basic customs duties.

     • Note:
       • If payment is received in advance, the limit is 12 months from the last date of such supplies.
       • Claim can be filed Invalidation Letter or ARO wise against individual Authorisation.
       • Claims may be filed where part payments have been received, but the benefit will be limited to the extent of payment received after 100% supplies have been made.
       • In case the claim is filed after the prescribed time period, the provision of late cut and the provision for supplementary claim shall be applicable.
3. Submission of Application for Claims :
   • The Supplier or Recipient of goods shall make an online application, for claiming deemed export benefits, in Form ANF-7A, through the official DGFT website (https://www.dgft.gov.in/CP/).
   • Following documents are required to be submitted along with claim application:

     Application	Attachments	Nature
     TED	ANF 7A and its Annexures	Mandatory
     	Proof of Payments (Appendix 2U or 7D)	Mandatory
     	Project Authority Certificate 7C	Optional
     	Copy of Contract	Optional
     	Copy of Invalidation Letter/ARO	Optional
     	Others	Optional
     Duty Drawback	ANF 7A and its Annexures	Mandatory
     	Proof of Payments (Appendix 2U or 7D)	Mandatory
     	Project Authority Certificate 70	Optional
     	Copy of Contract	Optional
     	Copy of Invalidation Letter/ARO	Optional
     	Others	Optional
     Brand Rate Fixation	ANF 7A and its Annexures	Mandatory
     	Appendix 7E	Mandatory
     	Others	Optional

     Note:

     • User can select amongst 3 options i.e., the Duty Drawback or Brand Rate Fixation or TED, for making claim application and basis the option selected, information pertaining to supplies, are to be filled.
     • Applicant can add multiple Refund of TED details. Quantum of TED should be more than Net Claim Amount.
     • The applicant must upload the mandatory attachment as per the application he is applying for.
     • For supplies to an EOU/ EHTP/ STP/ BTP, the claim can be filed with the concerned Development Commissioner (DC), and in all other cases, including DTA Units supplying to EOU/etc., the claim can be filed with the concerned Regional Authority (RA).
     • Exemptions and Limitation for Refund:
       • Incomplete/deficient application is liable to be rejected
       • Rejection in case of erroneous or in-eligible payment has been made or claimed
       • Mis-declaration and mis-representation of facts.
4. Issuance and Validity :
   • The RA shall verify and examine the application and issue final Approval Letter.
   • Refund is received through a direct electronic credit, to applicant’s validated bank account, which is registered with the Directorate General of Foreign Trade (DGFT) or Customs (ICEGATE), once RA approves the claim.

   Note:

   • In case, the claim is not settled within specified period, simple interest @ 6% per annum, will be payable, on the delay in refund of duty drawback and terminal excise duty, and payment to be made, within 30 days of such issuance.
   • No separate application is required for claiming this interest. RA shall add the interest component along with the principal amount.
   • If interest is not added by the RA or DC, a separate application, as per ANF-7B, may be filed within 30 days from the date of receipt of the principal amount and no interest shall be paid thereafter.