Supply to SEZ units

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This query is : Resolved

gopinathbv (Querist)

05 January 2011 Sir we have despatched the goods to SEZ unit with ARE 1 . But now department says before sendning the goods we should have executed the Letter of Undertaking --UT 1

Kindly tell me it is wrong or what is the remedy

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

06 January 2011 DEPARTMENT INTENTION IS RIGHT,

The provisions of Regulation 10 of the Special Economic Zone (Custom Procedure) Regulation, 2003 for requirement of issuance of Domestic Procurement Certificate (DPC) have been dispensed with in the SEZ Rules, 2006. Now the procedure for procurements of goods from Domestic Tariff Area to a SEZ Developer or a unit would be governed by the provisions of Rule 30 of the SEZ Rules, 2006, and the movement of goods from the place of manufacture to the SEZ shall be (i) on the basis of ARE1 (in cases where export entitlements are not availed); (ii) on the basis of ARE 1 and Bill of Export (in cases where export entitlements are availed) and against a general Bond or Letter of Undertaking, specified in Annexure-I and Annexure-II, under notification no. 42/2001-C.E.(N.T.) dated 26.06.2001 as amended, and furnished by the DTA supplier to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise. In the event of non-receipt of proof of export in form of endorsement, regarding admittance of goods in full into the Special Economic Zone, by the Authorized Officer of Customs posted in the SEZ, on ARE-1 and /or Bill of Export, as the case may be, within a period of 45 days, the duty should be demanded from the DTA supplier by the jurisdictional Central Excise Officer as is done in the case of non-availability of proof of export for normal export of goods, without payment of Central Excise duty, under Rule 19 of Central Excise Rules, 2002.

FOR MORE INFO LINK:- https://www.cbec.gov.in/customs/cs-circulars/cs-circulars06/29-2006-cus.htm

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gopinathbv

gopinathbv (Querist)

11 January 2011 not yet clarified

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

11 January 2011 READ notification no. 42/2001-C.E.(N.T.) dated 26.06.2001

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