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Deemed Export

Former Member
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Hi guru,

Can any one please explain me what is Deemed Export.

Also what is neccessary IMG path and setting required.



Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi Aguest Pune

You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty, but only if the goods are accompanied by an ARE-3 document.



Carry out the IMG activities in Customizing for Logistics – General, under Tax on Goods Movements --- India -Business Transactions- Exports Under Excise Regulations ---Deemed Exports and -- Printouts of ARE Documents.

Master Data

Enter your customers' deemed export licenses in the system.

Day-to-Day Activities

In order to qualify for an exemption from excise duty, all deemed exports must be accompanied by the appropriate paperwork, including an ARE-3 document, and you must complete the deemed export within the rewarehousing period. To process and track ARE-3s, use the ARE Documents functions, following the process described under ARE-3 Processing.

You can only issue an ARE-3 with reference to a customer's license. The system automatically keeps track of the license balance.

There are two ad-hoc reports that you can use for tracking licenses and ARE-3s: Deemed Export License Summary and Aging Analysis for ARE Documents.

The following link will help u

Reward if useful to u

Former Member
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deemed exports are a special kind of exports in which you get excise duty expmtion against a predefined qty or value which is captured in the licences. excise trasaction type is ARE3. no accounting docs are created. you have to create the licences first. then once an excise invoice is generated (of the deemed exports kind) you post ARE3 docs against it and settle the licence value or qty. you have to configure the ARE3 transaction codes. follow this path--img-log general--taxes on goods-india-buss trasactionsoutgoing-exports-deemed exports.


Former Member
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A sale of goods, in India, to a company that qualifies as an export-oriented unit or is located in one of the following:

  • Export processing zone

  • Electronic hardware technology park

  • Software technology park

Such companies export most of their goods; and so any goods that you sell them are liable to be used in the production of goods for export, hence the term "deemed export."

Under the terms of the deemed exports scheme, these companies can obtain licenses that exempt them from payment of basic excise duty on certain input materials.

Check these