Goods Rejected by SEZ to DTA

[Rakesh K Paliwal]

Dear All,

please let me know the provision of goods rejected by SEZ Customer to DTA Supplier, regarding to applicability of duty and credit .

Regards

Rakesh Paliwal

[Rajagopalan Ranganathan]

Sir,

When the goods procured by a SEZ unit from the DTA are sent back as it is or without substantial processing, such goods shall be treated as re-imported goods, as the original supply is treated as export. Their entry into DTA would be treated as re-import and normal re-import conditions and procedures would apply such as filing of Bill of Entry etc. I such case you have to pay all applicable duty under Customs Act. Therefore you can avil the credit of CVD and SAD (if applicable) paid on such re-import.

[MUKUND THAKKAR]

Sir,

In addition of above, if your product is repairable SEZ take permission for sending goods to DTA and return back with in period of 30 days after repair. in such situation need not pay any duty.

AI Summary

Re-importation treatment: goods returned from an SEZ to DTA attract customs duty but CVD and SAD credits are claimable. Goods supplied from DTA to an SEZ and sent back to DTA without substantial processing are treated as re-imported goods, requiring normal re-import procedures including bill of entry and payment of applicable customs duties; CVD and SAD paid on such re-import may be availed as credit. If goods are sent to DTA for repair with permission and returned within the authorised period, duty need not be payable.