Applicability of export duty on sales made by SEZ unit

[SARTHAK MITTAL]

Dear All,

I wanted to understand if export duties under Customs Act 1961 will be applicable if the notified products are sold from an SEZ unit?

Unlike DTA sales to SEZ unit where Rule 27 provides for levy of export duty, is there any specific provision for levy of export duty on export sales

[Shilpi Jain]

Recently there was Trade Notice No.1/2022 dated 3.6.22 - export duty will be liable.

Also refer section 2(m)(ii) of SEZ Act with Rule 27(1) of Rules

[SARTHAK MITTAL]

Thanks for clarifying.

Export duty on DTA sales to SEZ is fine, but what about export duty on SEZ sales to foreign countries.

Will section 26(1)(b) be considered for not levying export duties on final products sold by a SEZ unit to let say an australian customer

[Ravinesh Sinha]

Export duty on specified goods is payable if unit of SEZ export out of country .

AI Summary

Export duty applicability: exports from SEZ units can attract export duty, subject to statutory provisions and notifications. Whether export duty applies to goods sold by SEZ units to overseas buyers: a Trade Notice indicates export duty is liable on notified products sold from SEZ units, and forum respondents cited SEZ Act definitions and customs rules as the basis; while questions were raised about statutory provisions that might exclude SEZ exports, the prevailing view recorded is that export duty is payable on specified goods exported by SEZ units, subject to notifications and any applicable exemptions.