Sale of Scrap from SEZ Unit

[Ashok Chopra]

Respected Forum,

I am furniture manufacturing unit in SEZ.  It is first time, I want to sale wooden scrap to DTA, earlier we were disposing it off on challan giving declaration that we will dump it outside SEZ and no money has been charged from any one. now a party is willing to purchase that scrap from us.  I  want to know detailed procedure with copy of notifications/circulars/clarifications.

Authorised Custom Officer is of opine that first of all I should register Name and Address of person purchasing scrap from us. secondly, we should deposit  custom duty and excise duty by way of challan.  We should of Bill of Export with Authorised Custom Office and then we can remove scrap from Unit.

Please let me know, is he correct or unnecessarily he is telling us lengthy procedure?

If, he is not correct, please let me know detailed  procedure with copy of notifications/circulars/clarifications, so that i could be able to satisfy him.

 

Pls guide me accordingly

 

AI Summary

Furniture Manufacturer Seeks Guidance on Selling Scrap to Domestic Market; Rule 47 and Rule 49(4) Considered A furniture manufacturing unit in a Special Economic Zone (SEZ) seeks guidance on selling wooden scrap to the Domestic Tariff Area (DTA) for the first time. Previously, the scrap was disposed of without charge. The unit's authorized customs officer advised registering the buyer's details, paying customs and excise duties, and filing a Bill of Export. The unit owner questions the necessity of this procedure. A respondent suggests following SEZ Rule 47 for DTA sales, allowing removal without duty payment under Rule 49(4) for non-metal packing materials. Further contact information was provided for additional assistance.