TO, MR.

BALAKRISHNA

ARCHANA.R SB1005

EXPORTS
Selling of goods beyond customs frontier of ones country i.e. territorial limits were customs have got charge. The value of the goods should be realized in foreign exchange. Ex: Exports of flowers etc.

Exports taking place throughout the world

DEEMED EXPORTS
Selling of goods. Goods do not go beyond the customs frontiers of one country but supplied within the country. The investment for such goods transfer is done by foreign companies. Example: World Bank investing in India to improve export facilities within a country.

L&T company all set to construct International airports in Bangalore & Pakistan.

Deemed Exports
Example: Exporting without crossing borders. World bank calling for a tender application throughout the world to construct an international airport in India & Pakistan. The Indian company Lawrence and Turbo in response to the tender notification applies and gets the tender. The company transfers raw materials within the country to construct airport which doesnt require customs permission. And than there is transfer of raw materials from India to Pakistan(actual exports).in the 1st case the goods are not exports but deemed to be called exports as the money is invested by a foreign body like World Bank. There is no goods transfer outside the customs territory but foreign exchange takes place .