DGFT Online Deemed Exports Application Module

As part of the IT Revamp, the Directorate General of Foreign Trade (DGFT) has introduced the Online Deemed Exports Application Module vides a Trade notification dated 28^th July 2021. All applicants seeking a refund of Terminal Excise Duty, Grant of Duty Drawback as per AIR, and fixation of brand rate for duty drawback are required to apply online through this new Module under Chapter 7 of Foreign Trade Policy (FTP) 2015-2020.

Online Deemed Exports Application Module

The following applications are required to be submitted online through the importer/exporter's dashboard on the DGFT Website:

Refund of Terminal Excise Duty (TED)
Grant of Duty Drawback as per AIR
Fixation of Brand Rate for Duty Drawback

Important Announcement for Exporters/Importers

All the trade members need to submit online applications at the DGFT website. The system will generate a file number that can be used for tracking purposes through the portal.
The RAS would issue online deficiency letters calling for any additional information/document required, and the exporter must only reply to the deficiency letters online.
The applicant must submit all supporting documents as prescribed in ANF-7A in physical copy within a week of online submission for further processing.
The new online module serves only new applications. All old physical applications submitted manually shall continue to be processed manually by concerned RAs.

Deemed Exports

Deemed Exports refer to supplies of goods manufactured in India, which are notified as deemed exports under Section 147 of the CGST/SGST Act, 2017. The supply payment is received either in Indian rupees or convertible foreign exchange. Deemed exports are not zero-rated supplies by default, unlike regular exports. Hence all supplies notified as a supply for deemed export will be subject to levy of taxes, i.e., such supplies can be made on tax payment and cannot be supplied under a Bond/LUT. However, the refund of tax paid on the supply regarded as Deemed export is admissible to either the supplier or the recipient. The application for refund has to be filed by the supplier or recipient (subject to certain conditions) of deemed export supplies.

Categories of supply of goods notified as Deemed Exports

The following types of supply of goods have been declared as Deemed Exports:
Supply of goods by a registered person against Advance Authorisation
Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
Supply of goods by a registered person to Export Oriented Unit
Collection of gold by a bank or Public Sector Undertaking against Advance Authorization

Prescribed Person to File Refund Application

The recipient of deemed export supplies can apply for a refund in case of deemed exports. Alternatively, the supplier of such deemed export supplies can file the refund application if the recipient does not avail of the input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund.

Time Limit for a filing Refund Claim

For obtaining a refund], the recipient or supplier of deemed export supplies has to apply DGFT Online Deemed Exports Application Module, either directly or through a Facilitation Centre notified by the Commissioner before the expiry of two years from the date on which the return relating to such deemed export supplies is to be furnished electronically.

Documents Required

The applicant needs to submit all supporting documents as prescribed in ANF-7A. The papers are as follows:

Invoices or a statement of invoices attested by Central Excise Authorities, as per the procedure prescribed by CBEC in their circular 15/2008-Custom dated 26.9.2008
In case of a supply of goods to EOU, ARE-3 is duly certified by the recipient and their jurisdictional Central Excise Authority.
Self-certified copy of B/Es
Proof of payment through e-BRC as per APPENDIX-2U or Payment Certificate issued by Project Authority in APPENDIX-7D in original
PAC issued by the Project Authority in original as per APPENDIX-7C or Filed No. Where the original has been submitted
Copy of contract if supplies were to Project Authority or supplier's copy of original ARO/Invalidation Letter (if collection against ARO/Invalidation Letter issued against AA /DFIA/EPCG)
Non-availing of CENVAT credit certificate as per ANNEXURE-I by the recipient of finished goods (in case claim for TED)
A certificate regarding non-availing of CENVAT credit on inputs used in the resultant product by the supplier of goods (in case of a claim for drawback)
In case of a claim, a declaration/disclaimer certificate from the supplier is filed by the recipient of goods and from the recipient of goods if the supplier of goods files the claim.
Statement of supplies for Fixation of Drawback Rate

Procedure for Deemed Export supplies

The recipient, EOU / EHTP / STP / BTP unit, needs to give prior intimation in a prescribed format bearing a running serial number containing the goods to be procured, as pre-approved by the Development Commissioner and the details of the supplier before such deemed export supplies are made. The intimation needs to be forwarded to the following persons:

The registered supplier
The jurisdictional GST officer in charge of the such registered supplier
The jurisdictional GST officer

The registered supplier, after that, will supply goods under tax invoice to the recipient EOU / EHTP / STP / BTP unit. On receipt of such supplies, the EOU / EHTP / STP / BTP unit shall endorse the tax invoice and send a copy of the approved tax invoice to the following persons;

The registered supplier
The jurisdictional GST officer in charge of the such registered supplier
Jurisdictional GST officer

The endorsed tax invoice will be considered as proof of deemed export supplies by the registered person to EOU / EHTP / STP / BTP unit

Procedure to use Online Deemed Exports Application Module

The application procedure for applying for a Refund of Terminal Excise Duty (TED), Grant of Duty Drawback as per AIR, and Fixation of Brand Rate for Duty Drawback through the importer's dashboard on the DGFT Website is as follows:

DGFT Online Deemed Exports Application Module - Homepage

New User Registration

Access the DGFT website and proceed with the registration process. Provide the Registration Details and Select Register User as "Importer/Exporter."

DGFT Online Deemed Exports Application Module - Login Furnish the OTPs received by email and mobile number. Upon successfully validating the OTP, the applicant will receive a notification containing the temporary password that needs to change upon the first login.

DGFT Online Deemed Exports Application Module - Register

Apply for Ted Refund / Duty Drawback / Brand Rate Fixation

After logging in to the portal, Navigate to Deemed Exports Application Module. The applicant can proceed with the application by clicking on the respective application link. Click on the "Start Fresh Application" button or click on the "Proceed with Existing Application" Button in case the user has already saved a draft application On the applicant details, the screen user needs to provide all details. The IEC Number of the firm will be auto-populated as per IEC The form ANF-7A Application for Claim of Ted Refund / Duty Drawback / Brand Rate Fixation is attached here for reference:

Upload Documents

On the next screen, "Attachment," the applicant must upload all required documents mentioned above.

User Declaration

Under the declaration screen, the user will select the terms and conditions check box to accept it. Users can update the "Place" field if required and then click on the "Save and Next" button.

Summary page

The applicant can verify the filled-in details in previous screens and click on the "Print Summary" button to see the printable version of the form. Click on the "Sign" button to digitally sign the application form. Finally, the user clicks on the "Submit" button to apply.

Fee Payment

The user can verify the fee details on the application fee payment screen and click on the "Submit" button to pay against the application. After Successful Payment, the user will be redirected to the DGFT Website, and the receipt shall be displayed; the user can also download the ticket. The applicant will receive the application submission message with the File number on the screen. The user will be redirected to Submitted applications via My Dashboard by clicking on the OK button on the E-payment receipt. After Successful Payment, the Page shall be redirected to the DGFT Website, and the receipt shall be displayed; the user can also download the ticket. After verifying the details, the Duty Drawback for the Deemed Exports will be issued.

Checking the status of the Submitted Application

The applicant must log in to the DGFT Dashboard and click on the Submitted Applications. Enter the Type of application (Select in the dropdown: Duty Drawback). By clicking on the search option, the status of the application will be displayed.