SEZ - DTA- Exports Clarification

[Rajni D]

Dear Sir or Ma’am,

We are a business house in New Delhi and want to get material made on job work basis in an SEZ in Mangalore. Alternatively, we want to BUY material from SEZ in Mangalore for exports. We don’t want to pay customs duty or IGST. What is the procedure for buying material from an SEZ unit for exports without payment of IGST or Customs Duty when we are buying or getting the product manufactured for Exports. We request for clarification and your assistance. There are two scenarios:

1: Can the SEZ Manufacturer do a BILL TO SHIP TO Transaction for Exports where the BILL TO party is in India and the SHIP to party is outside India?

2. What is the procedure for Job Work done by an SEZ unit for exports by the DTA Customer.

3. Are there any statutory requirements and which is the best course forward.

Thank You!

AI Summary

Business Seeks Clarity on Exporting from SEZ Without Customs Duty or IGST; Queries on 'Bill to Ship to' and Job Work A business in New Delhi seeks clarification on exporting material from a Special Economic Zone (SEZ) in Mangalore without incurring customs duty or IGST. They inquire about the procedure for purchasing material from an SEZ for export purposes and present two scenarios: conducting a 'Bill to Ship to' transaction where the billing party is in India and the shipping party is outside India, and performing job work by an SEZ unit for export by a Domestic Tariff Area (DTA) customer. They request guidance on statutory requirements and the best approach.