Procedure for sales returns in the case of supply to SEZ units

[Srinivasa Varadan]

Pl. give the procedure for sales returns in the case of supply to SEZ units.

[YAGAY andSUN]

48. Procedure for Sale in Domestic Tariff Area - (1) Domestic Tariff Area buyer shall file Bill of Entry for home consumption giving therein complete description of the goods and/or service namely, make and model number and serial number and specification along with invoice and packing list with the Authorised Officers:

Provided that the Bill of Entry for home consumption may also be filed by a Unit on the basis of authorization from a Domestic Tariff Area buyer.

(2) Valuation of the goods and/or services cleared into Domestic Tariff Area shall be determined in accordance with provisions of Customs Act and rules made thereunder as applicable to goods when imported into India

(3) Where goods procured from Domestic Tariff Area by a Unit are supplied back to the Domestic Tariff Area, as it is or without substantial processing, such goods shall be treated as re-imported goods and shall be subject to such procedure and conditions as applicable in the case of normal re-import of goods from outside India:

Provided that in the case where such goods are supplied back to the Domestic Tariff Area, as it is, and where the import duty on such goods is “Nil” and while procurement of such goods no export benefits were allowed against such goods, the Unit may be allowed to supply back such goods to Domestic Tariff Area on the basis of invoice only and filing of Bill of Entry in such cases shall not be required.

[Srinivasa Varadan]

Thanks sir.

AI Summary

Sales returns to Domestic Tariff Area treated as re importation, subject to customs valuation and bill of entry procedures. Supplies returned from an SEZ unit to the Domestic Tariff Area require a Bill of Entry for home consumption with full item descriptions, invoice and packing list filed by the DTA buyer (or by the Unit with buyer's authorization). Valuation follows the Customs Act. Goods procured from DTA and returned without substantial processing are treated as re imported goods and subject to normal re import procedures, except where import duty is nil and no export benefits were claimed, in which case supply may be effected on invoice alone without a Bill of Entry.