Circular No. 88/2002-Cus.
F.No.305/100/2002-FTT
Government of India
Ministry of
Finance & Company Affairs.
Department of Revenue
Central Board of
Excise & Customs
Subject : Supply of Goods by EOU/EPZ/SEZ units against Special Entitlement of Duty Free Import of Goods -Clarification Reg.
I am directed to invite your attention
to Paragraphs 6.9 (e) and 7.8 (c )
(iv) of the Exim Policy 2002-2007 in terms of which supply of goods in DTA by EOU/EPZ/SEZ
units against special entitlements of duty free import of goods is to be counted
towards fulfillment of NFEP/EP in case of EOU/EPZ units and NFE in case of SEZ units. In the Customs and Excise notifications
governing EOU/EPZ Schemes, a suitable provision has been provided for allowing
EOUs and units in EPZs to clear manufactured goods against such special
entitlements without payment of duty. Similar facility has also been allowed to
the trading units in SEZ. In this
connection, it has been brought to the notice of the Board that the
manufacturing units in SEZ are not being allowed to clear manufactured goods in
DTA against special duty free entitlements without payment of duty on the ground
that the notifications relating to SEZ do not provide for such duty free
clearance facility.
2. The matter
has been examined by the Board. As mentioned above, in the notifications (Nos.
137/2000-Cus. and 52/2000-CE. both dated 19-10-2000) governing SEZ scheme, only
trading SEZ units have been allowed the facility to supply goods against special
duty free entitlements without payment of duty and the notifications do not
mention manufacturing SEZ units. This gives an impression that this facility is
not available to the manufacturing units in SEZ. However, this was never the
intention of the Government. Further, there is no reason to deny this facility
to SEZ manufacturing units, which is otherwise available to SEZ trading units
and EOU/EPZ units.
3. In
view of the of the position explained above, I am directed to convey that
manufacturing units in SEZ may also be allowed to clear manufactured goods in
DTA against special entitlement of duty free import of goods as per paragraph
7.8 (c) (iv) of the Exim Policy 2002-2007 without payment of duty. It is
clarified that special entitlement of duty free import of goods covers only the
goods specified under Serial No. 167 of the notification No. 21/2002-Cus, dated
1-3-2002. Therefore, only those goods specified under Sl. No. 167 of
notification No 21/2002-Cus, dated 1-3-2002 should be allowed to be cleared
against special entitlement of duty free import of goods, subject to fulfilment
of conditions as specified in the said notification.
4. Wide publicity may be given by issue of a Public Notice in this
regard.
5.
Difficulties, if any, faced in the implementation of above instructions, may be
brought to the notice of the Board at an early date.
Kindly acknowledge receipt of this Circular.
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