Applicability of Anti dumping duty on solar cell regarding SEZ entity

[manish kumar]

Vide Notification No. 01/2018-Customs (SG) dated 30th July, 2018, anti dumping duty have been imposed on import of 'Solar Cells whether or not assembled in modules or panels” falling under heading 8541 or tariff item 8541 40 11 when imported from China and other listed countries.

If a SEZ entity importing some of their input goods (falls under chapter other than 8541) from China and after that they are manufacturing Solar Cells, My query is…

when the SEZ entity clearing goods in DTA, whether anti dumping duty is applicable on such parts of input used which is imported from China.

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is applicable. Even though SEZ is treated as non territory of India but all the indirect laws of the country are applicable to SEZ.

[manish kumar]

Sir,

from my point of view also, it may be applicable, but from which rule/ notification/ case law, which is applicable in this matter

[YAGAY andSUN]

If goods are cleared from SEZ to DTA then the buyer in DTA is required to file Bill of Entry in the same manner as if the goods are imported into India. At the time of clearance of goods from SEZ to DTA, goods are subjected to duties of customs including anti-dumping duty, countervailing duty and safeguard duty under Section 30 of SEZ Act. Section 30 of the SEZ Act is reproduced below for ease of reference:

The Hon’ble CESTAT in the case of Commissioner of Customs vs Ram Krishna Exports reported at 2008 (224) ELT 113 (Tri-Ahd) = 2007 (11) TMI 167 - CESTAT, AHMEDABAD
had held that the no Anti-dumping Duty would be leviable on goods manufactured in SEZ and cleared to DTA as it could not be said that the products being cleared are from the country whose imports/goods are subject to Anti-dumping duty.

AI Summary

Anti-dumping duty applicability on SEZ-to-DTA clearances hinges on import-equivalence and a conflicting tribunal view. Applicability of anti-dumping duty on goods cleared from an SEZ to DTA is disputed: administrative practice treats SEZ-to-DTA clearances as imports requiring a Bill of Entry and liable to customs duties including anti-dumping, countervailing and safeguard duties under Section 30 of the SEZ Act, while a reported tribunal decision has held that anti-dumping duty would not be leviable on goods manufactured in an SEZ and cleared to DTA.