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Anurag Aggarwal   25 July 2015

Sale of fabric to dta unit

Dear Sir(s)

Unit 'A' is making sale of fabric to DTA unit which is further exporting the readymade garments made out of fabric supplied by Unit 'A'.

1. Can Unit 'A' avail the benefit of deemed exports/third party exports from such sales?

2. If yes, what all does Unit 'A' need to claim the benefit of deemed exports to meet its Export Obligation under EPCG?

3. Does Unit 'A' need to request to the DTA unit to make any specific remark in their Export documents?

4. What shall be required by Unit 'A' which it has to submit to DGFT office for the Export obligation under EPCG

Regards,



Learning

 1 Replies

Gentleman 77 (financial )     30 July 2015

First of all, this forum is for legal suggestions not for exports and imports benefits. Still I will answer your question.

  • When you sell a good for a DTA ( Domestic Tariff Area ) unit, how can you claim export benefits. It is a simple rationale. If you still want to claim export benefits, you will be called fraud.
  • It is not a deemed export at all. It is that you are dreaming.
  • The buying DTA unit if exports based on this raw material, they will get export benefits, not you.
  • If you are a manufacturer, I wonder how you do not these simple procedures and yet making this kind of a foolish question to a legal platform.

G S REDDY

HYDERABAD

 


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