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.. 

AI Summary

Merchant Exporters Question Procedures for Duty-Free Supply to SEZs: CT-1 Forms, ARE-1 Forms, and Excise Actions A participant raised questions regarding the procedures for Merchant Exporters (M.E.) supplying goods to Special Economic Zones (SEZ) without duty payment. Specifically, they inquired if M.E.s can issue CT-1 forms for such transactions, whether goods must be procured duty-paid from manufacturers, and the consequences if goods are supplied without duty payment using ARE-1 forms. They also questioned if the Excise department could take action against M.E.s when proof of export is submitted. The reply asked if the participant received clarification on these issues, referencing previous related discussions.