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What are deemed exports?

Deemed exports refer to the transfer of technology or technical data from a country to another country without the physical movement of goods. Here’s a detailed blog on its benefits and more.

As the world becomes more interconnected each day, opportunities for exporters and more variety in terms of selection for customers and importers are increasing. We are no longer in a time when you are restricted to buying products within your region. Today, a customer shopping in Chicago, the US, can place an order for a Made in India home décor product via e-commerce platforms.

What are deemed exports?

Deemed exports refer to the transfer of technology or technical data from a country to another country without the physical movement of goods. Deemed exports are subject to the same regulations as physical exports and require an export license or authorization from the government agency that overseas exports. The transfer of technology can occur through various means, including email, phone calls, video conferencing, or providing access to computer systems².

Benefits of deemed exports

Some of the benefits of deemed exports are:

Increased economic activity:

Deemed exports can contribute to the economy’s growth by providing opportunities for businesses to expand their markets and reach a larger customer base.

Cost savings:

Deemed exports can be a cost-effective way for businesses to share technology and knowledge with their international partners without the need for physical exports. This can reduce transportation costs, logistics expenses, and other related costs.

Improved competitiveness:

By sharing technology and expertise with foreign partners, businesses can improve their competitiveness in the global marketplace. This can help them stay ahead of their competitors and maintain their market position.

Knowledge transfer:

Deemed exports facilitate the transfer of knowledge and expertise between countries, which can be beneficial for both parties. This can help countries and businesses develop new technologies, products, and services, leading to improved productivity and economic growth.

Enhanced international relationships:

Deemed exports can improve international relationships by fostering collaboration and cooperation between countries. This can lead to increased cultural understanding, better communication, and improved trade relations¹.

Differences between export, deemed export, and merchant exports

Export

It involves the physical movement of goods across national borders for sale or transfer. It requires compliance with export control regulations and may require an export license or authorization from the relevant government agency.

Deemed exports

It involves the transfer of technology or technical data to another country. It is subject to the same export control regulations as physical exports and may require an export license or authorization from the relevant government agency.

Merchant exports

It refers to a person or company that buys and sells goods for profit. It can be involved in either exports or imports and may act as a middleman between the seller and the buyer.

Eligibility criteria for deemed exports

• The technology or technical data must be on the Commerce Control List (CCL) or otherwise controlled under the Export Administration Regulations (EAR).
• The technology or technical data must have a military or dual-use application.
• The release of technology or technical data must be subject to export control regulations.
• The technology or technical data must be for use in a foreign country.
• The release must occur within the United States.
• These eligibility criteria are set by the U.S. Department of Commerce, Bureau of Industry and Security (BIS). The BIS is responsible for regulating deemed exports to ensure that they comply with U.S. export control laws and regulations.

Product categories that quality as deemed exports

Products that qualify as deemed exports are typically those that have military or dual-use applications and are controlled under the Export Administration Regulations (EAR). These can include software, technology, technical data, and equipment that have been developed or produced in the United States. The specific categories of products that qualify as deemed exports can be found on the Commerce Control List (CCL) maintained by the U.S. Department of Commerce, Bureau of Industry and Security (BIS)³.

Visit Exports Compliance Dashboard to meet your documentation requirements

Amazon Global Selling: Your passport to easy e-commerce exports

Amazon Global Selling enables Indian exporters to sell internationally, while simplifying the export process with support at every stage. Leveraging Amazon’s tools and products, you can establish and manage your e-commerce exports business from India and sell on 18+ Amazon global marketplaces, and get expert support for fulfillment, compliance, and webinars. Whether you are a multi-city store, local seller, upcoming startup or a seasoned exporter, irrespective of your business size, you can export from India and establish your business on the world map.

Frequently Asked Questions

What are deemed exports under GST?

Deemed exports under GST refer to the taxable supply of technical information that doesn’t involve physical movement of goods.

Who is a deemed supplier?

A taxable person operating an electronic interface, who can facilitate the supply of goods in specific circumstances is a deemed supplier.

Published on August 31, 2023.

Sources:
1. https://www.bis.doc.gov/index.php/deemed-exports-faqs.
2. https://www.bis.doc.gov/index.php/policy-guidance/deemed-exports
3. https://www.bis.doc.gov/index.php/documents/regulations-docs/2340-commerce-control-list-overview-and-the-country-chart
4. https://www.bis.doc.gov/index.php/export-control-reform/export-controls-101/export-basics

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