FREE TRADE & WAREHOUSING ZONES

[Ashok Chopra]

Respected Forum,

I am exporter availing Duty Draw Bank and M.E.I.S. benefit.

One of my foreign buyer is registered in FTWZ. Supplies made by me in FTWZ will be considered Deemed Export.

My queries:-

Will i be entitled for Duty Drawback and M.E.I.S. benefit on the supplies made in FTWZ. Please let me know the procedure also.

Thanks and regard

[Nash Industries I Pvt Ltd]

Clearance to FTWZ is a physical export as per the SEZ Act and the regular export procedure under rule 18 or 19 be followed. Duty Drawback is eligible as per the law. MEIS is also eligible as per the law. However, there are practical difficulties in claiming the same.

[YAGAY andSUN]

Please check MEIS – Ineligible List on this matter.

[Himansu Sekhar]

Ineligible categories 1) EOU/EHTP/BTP/STP who are availing direct tax benefits/ exemption 2) Supplies made from DTA units to SEZ units 3) Exports of imported goods covered under para 2.46 of FTP 4) Exports through transhipment (goods originating in third country but transhipped through India) 5) Deemed exports 6) SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units 7) Items which are restricted/prohibited for export under schedule 2 of Export Policy in ITC (HS) unless specifically notified in Appendix B 8) Service export 9) Red sanders/beach sand 10) Export products which are subject to Minimum Export Price or export duty 11) Diamond, gold, silver, platinum, other precious metals in any form, including plain and studded jewellery and other precious and semi-precious stones. 12) Ores and concentrates of all types 13) Cereals of all types 14) Sugar of all types and all forms 15) Crude/petroleum oil and crude/primary and base products of all types and all formulations 16) Export of milk/milk products 17) Export of meat and meat products 18) Products wherein precious metal/diamond are used or articles which are studded with precious stones 19) Exports made by units in Free Trade Warehousing Zones

[Nash Industries I Pvt Ltd]

Thanks.

MEIS is not eligible for export from DTA to SEZ (including FTWZ), Exports made by units in FTWZ

Regards

S.Ramaswamy

[DR.MARIAPPAN GOVINDARAJAN]

Good query and best answers.

AI Summary

MEIS ineligibility for exports involving FTWZ restricts incentive claims while duty drawback remains available under SEZ rules. Supplies to a Free Trade Warehousing Zone are treated as physical exports under the SEZ framework, so exporters must follow regular export procedures. Duty Drawback is legally permissible for such clearances, whereas the Merchandise Exports from India Scheme is explicitly ineligible for exports from DTA to SEZ/FTWZ and for exports made by units in FTWZ; practical difficulties in claiming benefits may nevertheless arise.