Merchant Exporter and SEZ

[Mahir S]

Please clarify the following issues :-

1) Is it a confirmed fact that Merchant Exporters (M.E.) cannot issue CT-1 for procurement and supply of goods without payment of duty to SEZ ?

2.) As per sub rule 10 of Rule 30 of SEZ Rules, 2006, a M.E. can procure and supply goods to SEZ under a cover of Invoice ---- Does it mean the goods has to be procured duty paid from the Manufacturers and then to be supplied by the M.E. on its own invoice to SEZ.

3) What are conseqeunces if the M.E. has got CT-1. issued from the department and thereafter supplied goods to SEZ without payment of duty under cover of ARE-1 and the same accepted by Customs SEZ Officers.

4) Can Excise department take any action against such M.E. when Proof of Export (duly signed triplicate copy of ARE-1 by the SEZ Customs Officer) submitted to the department by M.E. and it is known that such supplies were for SEZ clearances.

Also refer previous ISSUES ID No. 3633 and 840 on the said topic.. 

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Merchant exporter documentation: CT-1 versus ARE-1 affects duty treatment and proof of export for SEZ supplies. The document raises whether merchant exporters may issue a CT-1 to procure goods duty free for supply to an SEZ, whether Rule 30(10) requires procurement to be duty paid from manufacturers and then invoiced to the SEZ, and what follows if a CT-1 was obtained but goods were exported under ARE-1 accepted by SEZ customs. It asks whether presenting the triplicate ARE-1 to excise authorities as proof of export bars departmental action concerning duty liability or other compliance issues.