Paragraphs 7 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This article is on the Handbook of Procedures only; the matching rules of the Policy are paragraphs 7.03 to 7.08, explained in our other articles on Chapter 7. These Handbook paragraphs say how a deemed export claim is filed (paragraph 7.03), how terminal excise duty on fuel is refunded (paragraph 7.04), how often and within what time a claim is filed (paragraph 7.05), what happens if it is late (paragraph 7.07) and which drawback rules apply (paragraph 7.09).
The procedure is taken from Chapter 7 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026; the Policy paragraphs it serves are in the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026, which carries no "updated up to" date. Later Public Notices should be checked. The GST refund on the same supplies is a separate claim: see our GST refund on deemed exports service.
The claim is filed online, by the supplier or the recipient who has an IEC, with documents uploaded in ANF-7A and a disclaimer certificate from the other party (paragraph 7.03). For categories (a) to (c) of paragraph 7.02, the application is made within 12 months from the date of realisation of full payment; for categories (d) to (g), within twelve months of receipt of supplies by the project authority or of payment. One application covers only one category (paragraph 7.05(c)). Late claims go to the late cut of paragraph 11.02 (paragraph 7.07).
Paragraph 7.03: procedure for claiming benefits
| Sub-paragraph | What it says |
|---|---|
| (a) | The application is filed online by the supplier or the recipient of the goods, having an IEC, as per paragraph 7.01 of the Handbook. |
| (b) | It can be made by the Registered Office, Head Office or Manufacturing Unit. |
| (c) | The applicant uploads the documents prescribed in ANF-7A, if any, at the time of online filing. No physical copy of the application is required to be submitted to the Regional Authority. |
| (d) | If the recipient files the claim for terminal excise duty (TED) or duty drawback, a disclaimer certificate (Annexure-III to ANF-7A) is obtained from the supplier and submitted with the application. If the supplier is the applicant, the disclaimer certificate from the recipient is submitted. |
| (e) | A claim can be filed only after payment is received in full, to the extent of supplies made, for supplies covered in "Para 7.08 A (a) to (c) of FTP". For supplies covered in paragraph 7.02 B (d) to (g) of the Policy, paragraph 7.05(b) of the Handbook applies. |
| (f) | A claim can be filed against payment received through the normal banking channel, as per e-BRC; supply documents are negotiated through the bank only. For supplies under paragraph 7.02 (d) to (g) of the Policy, a payment certificate issued by the Project Authority, in Appendix-7D (named only), is also submitted. |
| (g) | A sub-contractor can also file a claim, provided its name is endorsed in the Project Authority Certificate or the contract before supply of the goods. |
One cross-reference needs care. Sub-paragraph (e) cites "Para 7.08 A (a) to (c) of FTP" for the supplies by a manufacturer; in the Policy as held, the categories (a) to (c) by a manufacturer are in paragraph 7.02 (part A), while paragraph 7.08 concerns cement, steel and fuel. The cross-reference is quoted as printed; see our article on paragraphs 7.00 to 7.02.
Paragraph 7.04: terminal excise duty refund on fuel
For supply of High Speed Diesel (HSD) from depots of domestic oil Public Sector Undertakings under paragraph 7.02(b) of the Policy, terminal excise duty is refunded on the basis of a duty paid certificate issued by the concerned oil Public Sector Undertaking in the format in Annexure-IV to ANF-7A. The refund is allowed for the quantity of HSD procured by the EOU, EHTP, STP or BTP unit for its production activities, as certified by the DC or Bond authorities.
Paragraph 7.05: frequency and time period
- (a) Categories (a) to (c) of paragraph 7.02. The application for TED refund or drawback (whichever applies) may be filed within 12 months from the date of realisation of full payment against such supplies. Where payment is received in advance and supply is made later, within 12 months from the last date of such supplies. The claim can be filed Invalidation Letter-wise or ARO-wise against the individual authorisation within that time limit.
- (b) Categories (d) to (g) of paragraph 7.02. The claim may be filed either on proof of supplies effected or payment received, within twelve months from the date of receipt of supplies by the project authority or from the date of receipt of payment by the supplier, at the applicant's option, either against a particular project or all projects. Claims may also be filed where part payments have been received. Deemed export benefits may be allowed after full supplies have been made, but the benefit is limited to the extent of payment received.
- (c) One category per application. An application under ANF-7A pertains to only one category of supply in paragraph 7.02 of the Policy. A single application for multiple categories is not permissible.
Paragraph 7.07: time-barred and supplementary claims
If a claim is filed after the prescribed time period, the provision of late cut under paragraph 11.02 of the Handbook and the provision of supplementary claim under paragraph 11.03 of the Handbook apply. Those paragraphs are not explained here; no fee or period from them is stated.
Paragraph 7.09: other rules
Subject to the procedure in the Handbook, the Customs and Central Excise Duties and Service Tax Drawback Rules, 1995, or the Customs and Central Excise Duties Drawback Rules, 2017, as the case may be, apply mutatis mutandis to the deemed exports scheme. The drawback system is explained in Duty Drawback: Rates, Claim Process and Brand Rate; no rate is stated here.
Example with invented names
Godavari Switchgear Pvt Ltd supplies switchgear to an EOU, which is a category (b) supply, and receives full payment through the normal banking channel on a given date, evidenced by an e-BRC. Under paragraph 7.05(a) it can apply within 12 months from the date of realisation of full payment. It files online with an IEC, uploads the ANF-7A documents and obtains a disclaimer certificate from the EOU recipient (paragraph 7.03(d)). In the same year it also supplies to a project in category (d); that needs a separate application (paragraph 7.05(c)), with the Project Authority's payment certificate (paragraph 7.03(f)). If it misses the 12 months for the first claim, paragraph 7.07 brings in the late cut of paragraph 11.02.
Related reading and the Act
The conditions that apply to supplies are in paragraph 7.07 of the Policy; the benefits are in paragraphs 7.03 to 7.06 and 7.08. For the GST refund route see How to Claim a GST Refund on Deemed Exports. The Handbook is issued by the Director General under section 6 of the Foreign Trade (Development and Regulation) Act, 1992, and the Policy rests on section 5.
Need help with a deemed export claim file?
Disclaimer certificates, e-BRC trails, project payment certificates and the twelve-month clock all have to line up. Our GST refund on deemed exports team can review the claim file with you.
Key takeaways
- Paragraph 7.03: online filing with IEC, documents in ANF-7A, no physical copy, disclaimer certificate from the other party.
- Paragraph 7.03(e), (f): payment in full and through the normal banking channel (e-BRC); project payment certificate for categories (d) to (g).
- Paragraph 7.05: 12 months from realisation of full payment for categories (a) to (c); twelve months from receipt of supplies or payment for categories (d) to (g).
- Paragraph 7.05(c): one category per application.
- Paragraph 7.07: late claims go to paragraphs 11.02 and 11.03 of the Handbook.
Read next
- Paragraph 7.07 of the Foreign Trade Policy, 2023: common conditions for deemed export benefits
- Paragraphs 7.03 to 7.06 and 7.08 of the Foreign Trade Policy, 2023: benefits for deemed exports
- Deemed Export Refund Documents: Statement 5B, Undertakings and Evidence
- How to Claim a GST Refund on Deemed Exports
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.